Yesterday, in our Trading Room, I commented:
October 26, 2011 10:35 AM
trying to rally...
October 26, 2011 10:41 AM
if SPX goes above 1240, it should run this time...
SPX closed at 1242, yesterday, above the 1240 mark. This morning, as soon as the market opened, SPX was above 1250, the resistance that we discussed in this week's Market Forecast. After that, the market just kept on going! The big news was, of course, that overnight, Europe had reached a deal to begin fixing its financial problems. To add to the positive news, US GDP was better than expected.
We picked up quite a few longside trades yesterday, and were able to cash in today, including a +147% gain on GS Nov 105 calls. Our JOYG Nov 87.5 calls also did very well:
- October 27, 2011
- 12:01 | HappyTrading APA ($92.80) Sold to Close 11C105 Nov 103 calls, at $2.72 +30%
- 11:55 | HappyTrading APA ($103.10) Sold to Close 11C105 Nov 105 calls, at $2.60 +24%
- 11:19 | HappyTrading FFIV ($106.10) Sold to Close 1028C105 Oct 105 calls, at $1.95 +39%
- 11:12 | HappyTrading FFIV ($106.80) Sold to Close 11C100 Nov 100 calls, at $9.00 +43%
- 09:13 | HappyTrading JOYG ($92.80) Sold to Close 11C87.5 Nov 88 calls, at $7.35 +71%
- 07:05 | HappyTrading GS ($113.00) Sold to Close 11C105 Nov 105 calls, at $9.65 +147%
Commodity sectors were very strong today: OXY +9.7%, APA +4.67%, EOG +5.03%, CLF +8.52%. Financials finally saw some committed buying: GS +8.07%, C +8.41%, JPM +7.28%.
After the market, CLF delivered strong earnings, its shares were up another +8.4% (actually, there seems to be a glitch in the recorded closing price; CLF should have closed just be $70, but, for whatever reason, $67.48 was recorded). BIDU popped +7.28% on top of the +5.8% gain in the regular session, after reporting a solid quarter and raising its forecast for Q4. AMD also gave higher guidance in its quarterly report, sending its shares up almost +10%. CSTR shares sank almost 10% after announcing a fee hike (have they not been watching the tumbling of NFLX stock??). CSTR settled right at support this evening. If CSTR does anything like NFLX, we could see $40 on CSTR soon! DECK added to its gains in the regular session by +4.35% with a better-than-expected 3Q profit.
The Dow was up +339.51 points; SPX jumped +42.59 points; Nasdaq popped +87.96 points:
XME (metals and mining) jumped a whopping +9.09%! OIH (oil services) vaulted +6.45%. XLF (financials) gained almost +6%. MOO (agriculture) was up +5.11%. GLD (gold) and SLV (silver) continued to push higher.
SPX jumped +42.59 points to close at 1284.59. Its MACD and daily MAs went up.
Nasdaq popped +87.96 points to close at 2738.63. Its daily MAs and MACD also went higher.
This was a tremendous day for the market, breaking out of a 3-month long trading range. VIX dropped and closed below 30. This was the first day of the breakout. Even after a +3% day for the broader market, it seems the buying has just started. Although tomorrow is Friday, we may see some profit-taking here and there. We may see a mixed day with the market trading in a tighter range.
Good night and HappyTrading! ™