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Market Claws Back Into the Green!

|Includes: Apple Inc. (AAPL), AMSC, ARCH, BB, BTU, CLF, CNX, GS, IBM, MEE, X

The market open on the strong side today.  It sank down into the red in early afternoon, but, was able to close strongly back into the green!  We had a lot of plays going in the Trading Room today.

More than a month ago, I talked about AMSC and that the January calls looked attractive.  On November 23, just before Thanksgiving, I mentioned them again:
November 23, 2009 11:00 AM
AMSC
big move today, again remember those Jan calls?

Yesterday, I reminded our members once again:
December 8, 2009 8:12 AM
AMSC
big breakout; remember those Jan's?

Today, AMSC jumped a whopping +7.46%!  Those January calls more than doubled today!  Some of the other big winners include: RIMM, AAPL, and X, which were active names in our discussion today as well:
HappyTrading December 9, 2009 7:30 AM
RIMM
new leg up! $62+

HappyTrading December 9, 2009 7:57 AM
RIMM
$63+; might test $65 before earnings...
   (RIMM reached a high of $64.95 today.)

HappyTrading December 9, 2009 7:42 AM
X
looking strong...

HappyTrading December 9, 2009 7:50 AM
X
jan 45 calls very reasonable!

mylady December 9, 2009 11:47 AM
Happy - tks for X - up 24% already on Jan C's

AllanB December 9, 2009 12:11 PM
X....very nice call Happy!!!

Jack December 9, 2009 12:52 PM
AAPL , wow ! great call happy !

HappyTrading December 9, 2009 1:02 PM
AAPL
taking more profits; partially out... intraday +50% gain, gotta lock it in!!

For AAPL, we got into the Jan 200 calls early this morning at $5.00:
December 09, 2009
07:10 | HappyTrading AAPL ($192.30) Bought to Open APVAT Jan 200 calls, at $5.00

and took partial profits as high as +50% today:
December 09, 2009
01:00 | HappyTrading AAPL ($198.10) Sold to Close APVAT Jan 200 calls, at $7.50 +50%
12:19 | HappyTrading AAPL ($196.20) Sold to Close APVAT Jan 200 calls, at $6.60 +32%

We did get the day high a few minutes before the close at $7.5.  These options closed at $7.45.  AAPL should test the $200 level soon.

Commodity-related sectors bounced today.  Coals were really strong:  CLF +5.74% (new published position); MEE +3.89%; CNX +2.54%; BTU +1.96%; ACI +1.47%.  We did close out our puts on GS first thing in the morning for a small 10% loss:
December 09, 2009
06:55 | HappyTrading GS ($162.25) Sold to Close GPYXL Dec 160 puts, at $2.17 -10% 

These GS Dec 160 puts closed at $0.88!

The Dow closed up +51.08 points; SPX added +4.01 points; Nasdaq gained +10.74 points:

SOXX (semiconductors) and INX2 (internet) continued to lead the techs higher.  GDX (gold miners) bounced +2.18% (see last night's article).  XME (metals and mining) jumped +3.33%.  XLF (financials) managed to close in the green.  USO (oil) was lower again, as well as UNG (natural gas).  FXI (Chinese ADRs) was flat.

SPX

SPX added +4.01 points to close at 1095.95.  It tested the 30-day MA intraday, but, managed to bounce back to close in the green.

Nasdaq

Nasdaq gained +10.74 points to close at 2183.73.  It maintained above its daily MAs.  The MACD was flat.

After yesterday's slump, the market managed a modest bounce.  What's different today was that we saw some buying in the big names, which included GS, AAPL, RIMM, and IBM.  Still, the market treaded water within the recent range.  The dollar/gold theme was still on:  as the dollar went lower, gold rebounded and inspired buying in metals and mining.  Financials, as a group, was still lacking strength; we'd need to see a lot more buying in this sector to help the overall market.  Semiconductors continued to attract buyers, as discussed in my Market Forecast this weekend.  VIX came back down and closed below 23.  This is good for the market.  We need to see some follow-through on this bounce to feel more comfortable.  SPX 1120 and Nasdaq 2200 remain the resistance levels to break.

Good night and HappyTrading! ™



Disclosure: AMSC long; AAPL long; CLF long