Last week, we captured big profits on the downside, including a +500% trade on FAZ. Yesterday and today, we cashed out on more profits on the upside, including a +124% gain on SLV calls:
09:56 | HappyTrading AMZN ($187.80) Sold to Close 0826C185 Aug 185 calls, at $5.70 +21%
09:21 | HappyTrading SLV ($41.70) Sold to Close 09C40 Sep 40 calls, at $3.00 +92%
06:42 | HappyTrading FAZ ($72.55) Sold to Close 0826C70 Aug 70 calls, at $6.20 +13%
07:08 | HappyTrading SLV ($42.45) Sold to Close 09C40 Sep 40 calls, at $3.50 +124%
The market bounced today in the morning and didn't look back. We quickly closed out our new calls on FAZ, and, started to look for longside trades. Before noon, SPX was already above 1140.
Tech stocks were very strong. AAPL jumped more than $17. AMZN vaulted +9%. GOOG gained more than $20! PCLN soared $30. Chinese internet stocks also saw some buying: BIDU +7.67%; SINA +6.39%; SOHU +8.89%. Another stock that caught our attention was GMCR, which recently delivered a blowout quarter; its shares went up +11.27% today.
The Dow was up +322.11 points; SPX gained +38.53 points; Nasdaq jumped +100.68 points:
SOXX (semiconductors) and FDN (internet) both went up more than +5%. OIH (oil services) also bounced +5%. XLF (financials) struggled in the morning, but, came away with a +3.24% win. MOO (agriculture) added +3.82%. GLD (gold) and SLV (silver) saw some profit-taking, down 3.75% and 4.69%, respectively.
SPX added +38.53 points to close at 1162.35. It closed right at its 10-day MA, and the MACD went up.
Nasdaq gained +100.68 points to close at 2446.06. It also closed at its 10-day MA and pushed its MACD higher.
This was a strong bounce and drove the VIX back below 40. Yesterday, I found the market to be very impressive. SPX came close to 1120 many times, but, just would not break. This prompted me to be a little more cautious on the downside trades. This morning, the buying was powerful, and, for now, it looks like the momentum is starting to turn. SPX closed just above 1160, which could see some resistance. Breaking 1160, we could see the market test 1200, which the market was unable to break in its attempt last week. There are some important economic numbers coming this week. Tomorrow, we'll get some housing numbers. Thursday brings the usual weekly jobless claims. However, the market is most likely waiting for Bernanke's speech on Friday, as some people are looking for hints about QE3.
The market has sold off hard and left a lot of room to bounce. Mining stocks lagged the market today. We could see some buying return to these stocks tomorrow, especially if BHP delivers a strong quarter.
Good night and HappyTrading! ™