The market was jittery ahead of the FOMC meeting tomorrow. However, energy stocks still attracted buyers. Last night, we visited many of these gainers. Today, most of them continued to rise higher: UPL +3.51%, APA +0.61%, WLT +1.77%. Solar stocks were especially strong: TSL +4.29%, SPWRA +4.01%, STP +2.46%, FSLR +0.25%.
FSLR barely ended in the green, but, it traded as high as $142.66 before closing at $138.99. We took profits on our trade with profits as high as +76%:
December 15, 2009
12:32 | HappyTrading FSLR ($139.30) Sold to Close QHBLG Dec 135 calls, at $6.60 +29%
12:00 | HappyTrading GOOG ($593.90) Sold to Close GOPLN Dec 570 calls, at $24.00 +229%
11:49 | HappyTrading CLF ($45.66) Sold to Close CGJAC Jan 42 calls, at $4.80 +17%
10:45 | HappyTrading CLF ($45.30) Sold to Close CGJAC Jan 42 calls, at $4.50 +10%
07:16 | HappyTrading FSLR ($142.00) Sold to Close QHBLG Dec 135 calls, at $9.00 +76%
07:13 | HappyTrading FSLR ($140.80) Sold to Close QHBLG Dec 135 calls, at $8.00 +57%
We started the FSLR trade just yesterday, buying the Dec 135 calls at $5.1:
December 14, 2009
07:12 | HappyTrading FSLR ($136.60) Bought to Open QHBLG Dec 135 calls, at $5.10
These calls went as high as $9.23, near our high exit, and closed at $6.4. We also took profits on CLF, which we got back in yesterday. Further, we finally closed out the last portion of our GOOG Dec 570 calls for a big win, +229%! We bought these GOOG Dec 570 calls back in the beginning of November:
November 04, 2009
07:11 | HappyTrading GOOG ($540.00) Bought to Open GOPLN Dec 570 calls, at $7.30
We have already locked in profits on these along the way. But, since we were so far ahead, I decided to keep a portion of the trade open, until today. At the $24 exit, we made $16.7 per contract on the last part of this trade! I decided to cash these out today because the market was looking weak. In the Trading Room, just before the market started to slip, I said:
December 15, 2009 10:21 AM
it has been a stock-picking environment as the market stays range-bound...
December 15, 2009 12:03 PM
as you can see, I'm raising cash... I think we'll have time to react tomorrow before the Fed...
December 15, 2009 12:17 PM
a lot of things are getting toppy... so, I'm being very cautious... financials are still weak...
We took our profits off the table just in time, as a member exclaimed,
angar December 15, 2009 1:14 PM
FSLR - Thanks for great trade happy !! It is a nice feeling to make money when the market goes down
The Dow ended down 49.05 points; SPX slipped 6.18 points; Nasdaq lost 11.05 points. Althoguh this market has stuck in range, a "stock-picking" environment, we've been making some pretty strong picks! It is indeed a great feeling to be locking in profits on a market down day. We are now back in mostly cash and will be ready for the "Fed Day".
There's not much new information in the charts, so, we'll look at them on another day. It is interesting to note that both UNG (natural gas) and USO (oil) closed higher, which we had discussed this weekend in my Sector Watch article. OIH (oil services) also went up. RIG was especially strong, adding $1.98, or +2.43%.
The dollar went higher ahead of the FOMC meeting tomorrow. However, gold and silver both closed flat. The market still seems indecisive right now. Until we see strength back in the financials, the market continues to find difficulty breaking out. Nasdaq managed to close just above 2200, its recent resistance level. SPX was still unable to cross the resistance line set by 1120.
Good night and HappyTrading! ™
Disclosure: No Positions