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Market Slumps As Oil Pops! SPX, Nasdaq, CF, APKT, VMW, AIG, CRM, GOOG, ISRG, AMZN, FFIV, NFLX, FSLR

|Includes: AIG, AMZN, APKT, CF Industries Holdings, Inc. (CF), CRM, FFIV, FSLR, GOOG, ISRG, NFLX, VMW

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After a quick 2-day bounce (Friday and Monday), the market turned lower again today.  Oil popped higher, to just over $100/barrel.  Gold and silver continued to trade higher, with gold almost $1435/ounce and silver nearings $35/ounce.

Weakness was across the board.  Recent high-flying stocks saw sharp pullbacks.  FFIV, AMZN, NFLX, FSLR, and CRM were under heavy selling since yesterday, as Barron's published an article about negative views from Doug Kass.  GOOG fell more than $12 today, testing support at $600.  ISRG shed more than $15 in 2 days.  APKT also dropped sharply, down 6%, after popping over $77.5 on Monday morning.

We locked in profits on the long side on Monday and got into more short side trades, and, were in position to cash in on more profits on market's weakness today:

  • March 01, 2011
  • 12:14 | HappyTrading VMW ($81.10) Sold to Close 03P85 Mar 85 puts, at $5.11 +42%
  • 09:05 | HappyTrading AIG ($36.25) Sold to Close 03P37.5 Mar 38 puts, at $2.10 +48%
  • February 28, 2011
  • 12:48 | HappyTrading CF ($140.80) Sold to Close 03C140 Mar 140 calls, at $5.80 +18%
  • 08:27 | HappyTrading CF ($141.00) Sold to Close 03C140 Mar 140 calls, at $6.05 +23%
  • 07:12 | HappyTrading APKT ($75.30) Sold to Close 03C75 Mar 75 calls, at $4.00 +29%

The AIG and VMW puts were bought just yesterday and they were both highs of the day on our exits. 
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In the Trading Room, we were playing GOOG weekly puts:
March 1, 2011 11:05 AM
GOOG
coming down...


March 1, 2011 11:31 AM
GOOG
those 605 weekly puts are now asking $8! got in at $4.5

These 605 weekly puts closed at $8.4 today.

The Dow was down 168.32 points; SPX fell 20.89 points; Nasdaq slumped 44.86 points:

SOXX (semiconductors) and INX2 (internet) were both down.  USO (oil) popped +3.29% while OIH (oil services) slipped 2.53%.  XLF (financials) lost 2.14%.  SLV (silver) and GLD (gold), as mentioned before, went higher.  FXI (Chinese ADRs) traded down 0.66%.

SPX

SPX fell 20.89 points to close at 1306.33, below the 30-day MA.  The MACD went down.

Nasdaq

Nasdaq dropped 44.86 points to close at 2737.41.  Its 10-day MA and MACD turned lower.

Both SPX and Nasdaq closed below their respective 30-day MAs.  VIX jumped to close above 21.  Higher oil is giving investors the "right" excuse to take profits and the momentum to the downside is picking up.  We can see it even in stocks that have recently reported well, for instance, DECK -5.17% and EOG -3.9%.  Last week, SPX tested 1300 and held up.  It is about to test that mark again.  Many job-related economic data are due this week, starting with tomorrow's ADP report.  As I mentioned before, it is going to be a volatile week.  But, it is a very nice trading environment as we can catch profits on both sides!

Good night and HappyTrading! ™ (click to see our Facebook Page)