This morning, retail sales numbers came in better than expected. Investors were seemingly encouraged by the data and proceeded to push the stocks higher. Gold, once again, made new highs, trading above $1140/ounce. Oil also went higher. Commodity sectors bounced today. Coal stocks were particularly strong: BTU +5.51%, ACI +2.9%, CNX +4.21%, MEE +6.08%. In the morning, I commented in the Trading Room:
November 16, 2009 8:01
finally looking better... BTU, CNX, MEE, ACI
has been the strongest; new 52-wk high today...
MEE saw some very unusual options activities today. The MEE Apr (2010) 45 calls traded 14,873 contracts today vs only 307 contracts of open interest as of Friday's close!
GLD (gold ETF) jumped to a new all-time high of $112.16 and closed at $111.63, up +1.72%. SLV (silver ETF) closed above $18, added +5.01% for the day. Gold miners also pushed higher: GOLD +3.71%, ABX +2.56%, NEM +2.75%. See Sector Watch from last night's article for discussion on gold (NYSEARCA:GLD) and gold miners) (NYSEARCA:GDX). We took further profits on our GLD Dec calls today:
10:45 | HappyTrading GLD ($111.76) Sold to Close GCZLA Dec 105 calls, at $7.50 +173%
10:08 | HappyTrading GLD ($111.50) Sold to Close GCZLA Dec 105 calls, at $7.20 +162%
07:24 | HappyTrading GLD ($111.20) Sold to Close GCZLA Dec 105 calls, at $7.00 +155%
These calls went as high as $7.78 and closed at $7.4. We are still holding a position on GLD. We also locked in gains on many other positions, including an overnight +108% on TSL:
08:06 | HappyTrading TSL ($41.60) Sold to Close TSLKR Nov 37 calls, at $5.00 +108% (day high)
07:35 | HappyTrading ISRG ($280.00) Sold to Close AXVKU Nov 270 calls, at $11.00 +72%
07:03 | HappyTrading ISRG ($278.69) Sold to Close AXVKU Nov 270 calls, at $10.00 +56%
Both the TSL and ISRG positions were opened last Friday. The TSL calls went as high as $5 and closed at $4. TSL reports earnings on Thursday. The ISRG calls went as high as $12.49 and closed at $10.9.
Bagger Vance also took profits on some nice trades:
07:59 | Bagger Vance QLGC ($19.60) Sold to Close QLCKW Nov 18 calls, at $2.30 +31%
07:04 | Bagger Vance CSCO ($23.94) Sold to Close CYQKM Nov 23 calls, at $0.97 +8%
07:03 | Bagger Vance AKAM ($24.50) Sold to Close UMUKX Nov 23 calls, at $2.05 +95%
07:01 | Bagger Vance WLT ($70.00) Sold to Close WLTKM Nov 65 calls, at $5.20 +16%
07:00 | Bagger Vance FCX ($83.00) Sold to Close FHZLP Dec 80 calls, at $7.00 +106%
06:59 | Bagger Vance LVS ($17.70) Sold to Close LJJKW Nov 15 calls, at $3.20 +167%
After the market, SINA, China's largest Web portal, reported better-than-expected earnings, sending its shares up +4.81% in after-hours. ZOOM reported revenues that jumped more than +200% from the year before. Its shares vaulted +34% after the news! ZOOM is a leading China based manufacturer of mobile phones and other mobile electronic products.
The Dow was up +136.49 points; SPX added +15.82 points; Nasdaq gained +29.97 points:
Commodity sectors were strong: GDX (gold miners) +3.13%, XME (metals and mining) +4.34%, OIH (oil services) +3.27%, XLE (energy) +2.62%. Both USO (oil) and UNG (natural gas) were up. XLF (financials) managed to hang on to a +1.09% gain. HGX (housing) added +2.57%. FXI (Chinese ADRs) rose +2.14%.
Both SPX and Nasdaq closed above their recent resistance levels. SPX finally closed above 1100! VIX came down to close below 23 (see discussion in Market Forecast). The market is looking more bullish now. The daily upper BBs are opening up, hinting for more upward movements. Catching the daily upper BBs can allow the market to ride higher. The resistance levels to watch are: SPX 1130 and Nasdaq 2250. Although the commodity sectors bounced today, the financials were still a bit shaky. We'll need to see more strength in the financials for the market to push higher.
Good night and HappyTrading! ™