After closing above SPX 875 and Nasdaq 1700 last week, the market opened strongly and rallied until the close! In our Trading Room today, a member asked about SPX 900 being a resistance:
yagezilla May 4, 2009 9:03 AM
Happy: Is next resistance 900 spx?
HappyTrading May 4, 2009 9:38 AM
yes, zilla. It might just push through. Watch for new leg down on SKF and VIX.
Indeed, SKF and VIX broke down in the afternoon. SKF dropped more than $10 today, losing about $7 in the afternoon! SPX closed above 900 and turned positive for the year! We also continue to make winning trades with a +105% on APA:
May 04, 2009
01:01 | HappyTrading DVN ($57.20) Sold to Close DVNEY May 55 calls, at $3.50 +32%
12:16 | HappyTrading STP ($16.18) Sold to Close STPEZ May 15 calls, at $1.60 +33%
12:15 | HappyTrading WFC ($23.65) Sold to Close WFCEJ May 21 calls, at $3.60 +33%
11:54 | HappyTrading STP ($16.07) Sold to Close STPEZ May 15 calls, at $1.55 +29%
11:46 | HappyTrading WFC ($32.25) Sold to Close WFCJE May 21 calls, at $3.30 +22%
11:16 | HappyTrading DVN ($56.80) Sold to Close DVNEY May 55 calls, at $3.20 +21%
May 01, 2009
12:28 | HappyTrading SOHU ($55.50) Sold to Close UZKEK May 55 calls, at $3.70 +16%
11:17 | HappyTrading APA ($77.46) Sold to Close APAEO May 75 calls, at $4.10 +105%
08:35 | HappyTrading APA ($76.45) Sold to Close APAEO May 75 calls, at $3.30 +65%
The market saw strength across the board with financials and miners leading the pack! Coal stocks were particularly on fire: MEE +21.14% (MEE has jumped from under $13 to almost $22 in just 4 trading sessions!); CNX +12.14%; ACI +11.87%; BTU +11.04%. For the financials, STI +25.05%, JPM +10.16%, WFC +23.66%, and BAC +19.31% were among the big winners.
Both oil and gold rose higher. The Dow closed up +214.33 points; SPX jumped +29.72 points; Nasdaq gained +44.36 points:
SOXX (semiconductors) continued to lead the techs with a +5.47% gain. XME (metals and mining) and XLF (financials) led the overall market with +9.52% and +10.14%, respectively. XLE (energy) added +4%. OIH (oil services) garnered almost +6%, while USO (oil) went up +3.17%. PBW (clean energy) rose +7.83%. FXI (Chinese ADRs) advanced almost +9%.
SPX jumped +29.72 points to close at 907.24, above the 900 level. Its daily MAs and MACD turned higher!
Nasdaq gained +44.36 points to close at 1763.56. Its daily MAs and MACD went up.
With SPX rising above 900, lots of our "Happy" members locked in profits today:
QUARRYMAN May 4, 2009 9:14 AM
I'm in on the FITB May 4s at BAGGER right now, it has yet to really fly.
Frosty Muggs May 4, 2009 12:37 PM
DELL May 12 Calls out at $0.52 from $0.39 +33%
Bagger Vance May 4, 2009 12:45 PM
tremendous day, everyone...i'm humbled to be around such a sound group! You're all on top of your game and it's a beautiful thing when the music is playing...very sweet. Don't forget to LOCK in some gains...never be too trusting.
Skymist May 4, 2009 1:04 PM
A day I will not soon forget! I think my account is up about 10% overall today. Wow.
What a finish to the markets. The market clearly has a sentiment change. Shippers and materials are a big part of it.
Great trading everyone!
The question now is: "Can this rally push beyond SPX 900?" With the "stress test" results on banks being released on 5/7, the financial sector is drawing investors in. SKF (financial ultrashort) closed under $50 today, a new all-time low. Coal stocks have run far in the last few sessions and will likely see some profit-taking tomorrow. Other sectors such as financials and techs still look strong. Energy stocks are also showing room to go higher. We may see some more buying in the morning tomorrow, then, we'll likely see people locking in profits. Profit-taking may not necessarily turn the market around, but, the market could use a quick break. We'll have to monitor the SPX 900 level to see if it holds. We could see SPX test 950 from here.
Good night and HappyTrading! ™