Yesterday, SNDA shares spiked up almost +20% on the news that it filed for a new IPO of its online literature unit. Then, the news of Renren (the Chinese equivalent of Facebook) filing for its IPO hit the street, Chinese internet stocks jumped. SINA popped $10 yesterday, and was up another $11 intraday today, trading as high as $147.12! As recent as March 2, SINA was a $75 stock. It has nearly doubled in just 45 days!! Last week, in our Trading Room, I pointed our members to look at SOHU:
April 14, 2011 7:26 AM
still good... should see $100+ next week...
SOHU traded as high as $102.42 today. DANG was the king among the Chinese internet stocks, surging over +16%! YOKU also continued to rise, trading above $69 intraday. NTES was lagging, closing in the red. BIDU managed to record a new all-time high at $150! We locked in profits on our Chinese internet plays:
- April 19, 2011
- 07:34 | HappyTrading DANG ($23.40) Sold to Close 05C20 May 20 calls, at $4.00 +105%
- 07:31 | HappyTrading YOKU ($68.00) Sold to Close 05C65 May 65 calls, at $6.20 +38%
- 07:28 | HappyTrading SOHU ($100.70) Sold to Close 05C100 May 100 calls, at $7.40 +76%
- 07:18 | HappyTrading DANG ($23.10) Sold to Close 05C20 May 20 calls, at $3.60 +85%
- 07:15 | HappyTrading YOKU ($68.70) Sold to Close 05C65 May 65 calls, at $6.50 +44%
- 07:14 | HappyTrading SOHU ($101.70) Sold to Close 05C100 May 100 calls, at $7.80 +86%
These were all overnight winners. We opened these trades yesterday afternoon just 1 hour before the close:
- April 18, 2011
- 12:52 | HappyTrading DANG ($20.85) Bought to Open 05C20 May 20 calls, at $1.95
- 12:50 | HappyTrading SOHU ($95.90) Bought to Open 05C100 May 100 calls, at $4.20
- 12:12 | HappyTrading YOKU ($64.70) Bought to Open 05C65 May 65 calls, at $4.50
and took the profits just 1 hour after market open this morning. So, essentially, we got doubles in just 2 hours!
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Internet stocks in the US are doing well also, well, besides GOOG. PCLN recorded a new 52-week high at $525.57, finishing up $8.75. NFLX has sustained a lot of negativity lately over its valuation; and yet, it popped again, rising back above $240, up $8.22. MELI, the Latin e-commerce company, hit a new all-time high at $90.72!
Overall, the market showed better strength today after yesterday's selloff on S&P's downgrade of US debt. After the market, many tech companies reported earnings, mostly on the upside. IBM beat its earnings estimates and raised its EPS guidance for 2011. IBM initially jumped above $168 (a new all-time high) after the news, but, sank lower to trade down 2% (Perhaps too many people bought into the 165 and 170 weekly calls? These will expire on Thursday, as Friday is a market holiday!). INTC delivered blowout earnings numbers, with a $12.9 billion revenue vs. $11.6 billion expected. INTC shares jumped +5% this evening. JNPR earnings were solid but not as good as IBM's. However, JNPR shares traded better than +3%. CREE disappointed once again, with shares falling more than 6%. WYNN's profit soared on strong performance in Macau; its shares rose more than +3% after market.
Gold touched $1500 today, a new record high. Silver closed above $44/ounce.
The Dow was up +65.16 points; SPX added +7.48 points; Nasdaq rose +9.59 points:
OIH (oil services) bounced +1.84%. GDX (gold miners) gained +1.33%. XME (metals and mining) rebounded +1.27% on STLD's upbeat earnings. MOO (agriculture) also climbed back up, adding +1.43%.
SPX added +7.48 points to close at 1312.62. It managed to close above its 30-day MA. Its MACD was lower.
Nasdaq rose +9.59 points to close at 2744.97, also above its 30-day MA. Its MACD slid.
The market almost broken down yesterday morning. But, SPX 1300 held the support (see Market Forecast). The market showed better strength today, apparently expecting strong earnings from tech companies such as INTC and IBM. Tomorrow, many investors will be asking the question: "Apple, or no Apple?" AAPL will report tomorrow afternoon. Its shares have been under pressure since early March. Yesterday morning, it touched $320, from a recent high of almost $365. Since yesterday's low, AAPL has bounced back nearly $20 to trade close to $340. But, with weekly options expiring on Thursday, even if AAPL reports well, we may not see a big move immediately after its earnings (see IBM). Unless, of course, AAPL absolutely blows away the earnings estimates and forecast. On the other hand, the bounce in mining, energy, and agriculture stocks look very enticing to me.
Good night and HappyTrading! ™