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Fed Keeps Rates Low! SPX, Nasdaq, AMZN, GOOG, AAPL, NFLX, JOY, GOLD, SLW, CF, WLT, IOC, APA

|Includes: AAPL, APA, CF, GOLD, Alphabet Inc. (GOOG), IOC, JOY, NFLX, WLT, WPM

The market rallied higher on Monday on hopes that progress was being made on the budget negotiation between the President and the House Republicans. Things pushed higher today in the morning, but faded after the Fed vowed to keep rates low until unemployment rate falls to 6.5% or less. We continued to lock in gains and keep cash. We got out of our AMZN puts on Monday and Tuesday. Then, we did some quick trades on GOOG calls:

  • 09:51 | Ecstatic Plays GOOG ($699.00) Sold to Close 1214C690 Dec 690 calls, at $10.00 +33%
  • 07:19 | Ecstatic Plays GOOG ($698.20) Sold to Close 1214C690 Dec 690 calls, at $11.00 +47%
  • 06:48 | Ecstatic Plays AMZN ($247.00) Sold to Close 1214P250 Dec 250 put, at $4.70 +47%
  • 11:15 | Ecstatic Plays AMZN ($248.60) Sold to Close 1214P250 Dec 250 put, at $4.00 +25%

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AAPL closed in the red once again. NFLX did get a technical pop to just above $93 intraday before settling down back to $90.73 for the close. JOY gained almost +4% today after reporting a quarter that saw an increase in net income by +23%. Gold and silver miners saw some buying today as SLW added +3.2% and GOLD gained +1.71%. In the agriculture sector, CF dropped 3.47% on less than enthusiastic comments from Goldman Sachs.

The market is still waiting for a budget deal. Frankly speaking, it is obvious that the politicians are still playing games. They just keep on repeating the same things whenever they make an appearance on TV. So, the market locked in some profits today. In my Market Forecast this weekend, I mentioned 1430 as the immediate resistance. SPX didn't close above that level yesterday, and although it went above it this morning, it came down to close below that level again today!

The Dow was down 2.99 points; SPX climbed +0.64 point; Nasdaq slid 8.49 points:

GDX (gold miners) added +2.92%. HGX (housing) gained +1.98%. Most other sectors hovered around the flatline.


SPX added +0.64 point to close at 1428.48, just below 1430. The daily MAs and MACD glided up.


Nasdaq slipped 8.49 points to close at 3013.81. The daily MAs and MACD also went up.

This market is still very cautious, although buyers have started to trickle back in. It is certainly good to see coals rebound. WLT, in particular, has been very strong. Energy stocks are also seeing some buying. IOC is trying to draw a bottom. APA is working hard to turn bullish. Nevertheless, a lot of money is still sidelined, waiting for a budget deal. So, let's be patient. The market is ready to ascend, but, it wants to see a deal passed first.

Good night and HappyTrading! ™

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