After 3 days of profit-taking, the market was strong right from the open today. Financials and techs led the rebound. Regional banks were especially jumpy: HBAN +7.03%, STT +6.52%, FITB +7.12%. Agriculture stocks continued to push higher. We got back into both POT and MOO and again scored some nice trades:
May 14, 2009
12:50 | HappyTrading MOS ($50.70) Sold to Close MOSFI Jun 45 calls, at $7.50 +32%
12:19 | HappyTrading POT ($107.30) Sold to Close PYPEA May 105 calls, at $3.20 +7%
11:40 | HappyTrading POT ($108.30) Sold to Close PYPEA May 105 calls, at $4.00 +34%
11:28 | HappyTrading MOS ($49.60) Sold to Close MOSFI Jun 45 calls, at $6.70 +18%
The Dow was up +46.43 points; SPX added +9.15 points; Nasdaq gained +25.02 points:
SOXX (semiconductors) bounced back +3.2%. XLF (financials) added +3.34%. MOO (agriculture) added +2.64%. Commodity secotrs also showed renewed strength: XME (metals and mining) +1.65%; USO (oil) +0.65%; UNG (natural gas) +1.62%; PBW (clean energy) +3.11%. FXI (Chinese ADRs) rose +0.57%.
SPX added +9.15 points to close at 893.07. It stayed above its 20-day MA. The MACD was slightly down.
Nasdaq gained +25.02 points to close at 1689.21. It closed above the 30-day MA, but, below the 1700 level. Its MACD was lower.
Well, the market stopped the bleeding, as least for now. SPX used its 20-day MA as support, while Nasdaq bounced off of its 30-day MA. VIX went lower again and closed under 32. Its daily chart is now showing a new leg down. We could see VIX into the 20s from here, which would be a good sign for the market. Tomorrow is options expiration day. Both SPX and Nasdaq are near their key levels: SPX 900 and Nasdaq 1700. It would be a mental blow to the bears if SPX and Nasdaq can close the week above those key levels.
Good night and HappyTrading! ™