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Market Takes A Pause... SPX, Nasdaq, GS, AAPL, NFLX, BIIB, GMCR, AMZN, IOC

|Includes: AAPL, AMZN, BIIB, GMCR, Goldman Sachs Group Inc. (GS), IOC, NFLX

After yesterday's sharp fall, and some very lucrative, fast trades on the downside, the market takes some time today to breathe.  As we discussed in this week's Market Forecast, the market dropped in the morning, coming close to testing 1180.  However, in the Trading Room, I was looking for the market to bounce a bit:

November 22, 2011 8:18 AM
... there are big buyers wanting to get into this market.

Even though the market did bounce a bit, we still found nice trades on the downside, and on the upside.  In the Trading Room, we called out longside opportunities on BIIB and IOC:
November 22, 2011 7:28 AM
getting a bounce...

November 22, 2011 7:30 AM
huge move since earnings

BIIB closed the day up +5.2% and IOC added +10.23%!!

We also traded quick downside trades on NFLX and GMCR:
November 22, 2011 7:31 AM
still weak...

November 22, 2011 7:33 AM
now dropping...

November 22, 2011 8:14 AM
quick scalp on 52.5 puts from $2.9 to $4.05 in 45 minutes...

For our Trade Alerts, we picked up more profits, also both calls and puts.  Financials were very weak today, as the Fed decided to make further stress test on the big banks.  On the longside, it seems like fund managers are starting to shop for the holidays, pushing AAPL up +2%.  AMZN also reversed its morning weakness and gained $3:

  • November 22, 2011
  • 12:29 | HappyTrading GS ($89.70) Sold to Close 1125P90 Nov 90 puts, at $1.80 +3%
  • 11:49 | HappyTrading AAPL ($376.60) Sold to Close 1125C375 Nov 375 calls, at $4.15 +48%
  • 10:34 | HappyTrading AAPL ($376.15) Sold to Close 1125C375 Nov 375 calls, at $3.70 +32%
  • 08:29 | HappyTrading GS ($89.40) Sold to Close 1125P90 Nov 90 puts, at $2.30 +28%

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The Dow was down 53.59 points; SPX fell 4.94 points; Nasdaq slid 1.86 points:

BTK (biotech) added +1.14%.  GLD (gold) and SLV (silver) bounced.  USO (oil) also closed in the green.  OIH (oil services) and XLE (energy), however, were still weak.  XLF (financials) came back down to test $12.


SPX slid 4.94 points to close at 1188.04.  Its daily MAs and MACD curved down.


Nasdaq fell 1.86 points to close at 2521.28.  Its daily MAs and MACD were lower.

VIX closed down today, even though the market indices were also slightly lower.  Nevertheless, the market is still very weak, and very close to breaking down another leg.  If SPX 1180 does not hold, we could easily see 1140 soon.  The weakness in financials and industrials does not give buyers to jump back in and stay in.  Tonight and tomorrow early morning, we'll hear some important economic data from China and Europe.  We'll have to see how the global financial markets react.  We did some more quick trades today and went back into cash by the end of the day.  Remember the market is on Thursday for Thanksgiving, and only open until 1pm EST on Friday.

Good night and HappyTrading! ™

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