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More Profit-Taking To Let Off Steam!

|Includes: AAPL, Agnico Eagle Mines Limited (AEM), BBRY, BTU, CNX, GOLD, MEE

Even though the jobs data was favorable this morning, the commodity sectors remained weak.  It was a signal that profit-taking was going to continue.  Crude oil and gold prices fell further.  Miners dropped lower:  AEM -5.22%, GOLD -3.41%, BTU -2.58%, MEE -4.77%, CNX -3.22%.

This morning, I commented in our Trading Room:
September 24, 2009 7:51 AM
market
getting a little bounce; but, not the time to go long. I'm looking at downside plays on a bounce...

We even cashed out our "RIMM earnings play" on AAPL.  We had gotten into AAPL calls to indirectly play RIMM's earnings.  But, with the weakness on the market today, the charts just did not support a bullish case for RIMM.  We cut our loses on AAPL at -20% early in the morning:
September 24, 2009
08:17 | HappyTrading AAPL ($184.60) Sold to Close APVJR Oct 190 calls, at $4.10 -20%

After the market, RIMM indeed did disappoint.  Even though its net profit beat the estimates, its revenue fell short.  More importantly, its earnings outlook was lower than expected.  RIMM shares tumbled 11.27% in after-hours trading.  AAPL shares fell $2.22.

The Dow finished down 41.11 points; SPX fell 10.09 points; Nasdaq lost 23.81 points:

SOXX (semiconductors) led the techs on the retreat, down 2.42%.  Commodity sectors were mostly lower:  OIH (oil services) -2.53%, GDX (gold miners) -2.45%, XME (metals and mining) -3.2%, XLE (energy) -1.43%.  USO (oil) sank another 3.3%, while UNG (natural gas) added +2.48%.  Both GLD (gold) and SLV (silver) were down.  FXI (Chinese ADRs) dropped 2.65%.

SPX

SPX fell 10.09 points to close at 1050.78.  Its 10-day MA flattened and the MACD went lower.

Nasdaq

Nasdaq dropped 23.81 points to close at 2107.61.  It closed below its 10-day MA.  Its MACD went down.

With today's drop, both SPX and Nasdaq fell below their nearest support levels, which were SPX 1060 and Nasdaq 2120.  The market indices also closed below their respective 10-day MAs.  The market now is going through another consolidation phase.  The next support levels now will be the 20-day MAs, then, the 30-day MAs.  We are mostly in cash and are already on our "downside" plays.  I think we'll see more weakness tomorrow, especially with the disappointing earnings from RIMM. 

Good night and HappyTrading! ™