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Market Gives In To Selling Pressure, Once Again! SPX, Nasdaq, NFLX, WYNN, AAPL, GOOG, SINA, SOHU, BIDU, QIHU, YOKU, TIN, PKG, V, MA, AXP

|Includes: AAPL, AXP, BIDU, GOOG, MA, Netflix, Inc. (NFLX), PKG, QIHU, SINA, SOHU, TIN, V, WYNN, YOKU

The market was green for most of the day, but, sold off in the last hour to close in the red!  AAPL continued to be weak, losing another $6 today.  It is down $13 after yesterday's open!  GOOG was up in the morning, but, closed down $2.03.  NFLX managed a small bounce after falling more than $10 on Monday.  We caught most of that move, scoring a +148% intraday win yesterday:

  • June 06, 2011
  • 12:14 | HappyTrading NFLX ($263.70) Sold to Close 0610P265 Jun 265 puts, at $6.00 +107%
  • 11:42 | HappyTrading NFLX ($261.00) Sold to Close 0610P265 Jun 265 puts, at $7.20 +148%
  • 11:21 | HappyTrading NFLX ($262.85) Sold to Close 0610P265 Jun 265 puts, at $6.20 +114%
  • 07:56 | HappyTrading NFLX ($270.50) Bought to Open 0610P265 Jun 265 puts, at $2.90

We didn't chase any calls this morning and were expecting an afternoon selloff.  We picked up some WYNN June 142 puts in the morning and booked profits as high as +73% after just 80 minutes:

  • June 07, 2011
  • 09:32 | HappyTrading WYNN ($137.90) Sold to Close 06P142 Jun 142 puts, at $5.70 +73%
  • 09:21 | HappyTrading WYNN ($138.20) Sold to Close 06P142 Jun 142 puts, at $5.50 +67%
  • 09:06 | HappyTrading WYNN ($138.70) Sold to Close 06P142 Jun 142 puts, at $5.00 +52%
  • 08:16 | HappyTrading WYNN ($141.70) Bought to Open 06P142 Jun 142 puts, at $3.30

These WYNN June 142 puts closed at $6.85, as selling picked up again just before the close.  We rolled down to 140 puts in the Trading Room and scalped another $1 in 20 minutes.

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Chinese internet stocks have been falling like rocks!  SOHU, SINA, BIDU, YOKU were all off more than 10% in the past 3 trading sessions.  These all rebounded today, trading curiously opposite to the broader market's movement (ie. Market was up in the morning and down just before the close.  These stocks were down in the morning, but, bounced almost to green in the afternoon.)  QIHU was a standout, which spike up to almost $26 intraday, before closing at $23.8, up +17.53% for the day!

TIN shares popped more than +40% after receiving a $3.3 billion buyout bid from IP.  Its competitor, PKG, also jumped +6.19%.  PKG looks to be heading higher.  I wouldn't chase TIN here.

The Dow was down 19.15 points; SPX slid 1.23 points; Nasdaq fell 1 point:

SOXX (semiconductors) and FDN (internets) finished slightly up.  Most sectors, like the broader market, were basically unchanged.

SPX

SPX slid 1.23 points to close at 1284.94.  It closed just above the 1280 support.  Its daily MAs and MACD went lower.

Nasdaq

Nasdaq fell 1point to close at 2701.56, just above 2700.  Its daily MAs and MACD were also down.

Last Friday's gap down was a good hard punch to the bulls, and, the market has not been able to recuperate much strength since then.  Was that a "knock-out" punch for the bulls?  VIX closed above 18 today, but, still really not moving much.  It looks like most bulls are still tenaciously holding on.  We should see SPX test 1280 soon and perhaps a bounce after that.  The market is really mixed right now, but, the momentum is on the downside. 

Credit card stocks (V, MA, AXP) should be interesting to watch in the few days, as the vote to determine a cap on debit card fees will come to the Senate floor on tomorrow.  V was up +2% today; MA and AXP were fractionally higher.

Good night and HappyTrading! ™

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