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Commodities Stayed Green In Choppy Trading: SPX, Nasdaq, AEM, GOLD, ABX, X, MT

|Includes: ABX, AEM, GOLD, MT, SPDR S&P 500 Trust ETF (SPY), X

The market started out strong, with the Dow charging up above 8500 again.  But, profit-taking soon took over after two hours of trading.  In the afternoon, the market slipped into the red as the Fed appeared to be conservative in its revised 2009 forecast.  Commodity sectors, however, stayed mostly green.  Gold miners were especially strong.  AEM added +6.02%; GOLD gained +5.36%; ABX advanced +6.56%.  We cashed out on our GOLD trades:

May 20, 2009
10:21 | HappyTrading GOLD ($65.30) Sold to Close GUDFL Jun 60 calls, at $7.50 +29%
07:21 | HappyTrading GOLD ($66.64) Sold to Close GUDFL Jun 60 calls, at $8.50 +47%

Coal and steel miners also made solid gains.  For instance, X was up +4.34% and MT rose alos +4.34%.  Financials slumped after the 'Fed news' came out.  Techs also gave back most of their early gains.  The Dow ended down 52.81 points; SPX slid 4.66 points; Nasdaq lost 6.7 points:
XLF (financials) lost 2.66%.  GDX (gold miners) jumped +5.31% while XME (metals and mining) added +2.4%.  GLD (gold) and SLV (silver) were both higher.  USO (oil) went up by +3.29% and UNG (natural gas) gained +2.22%.  PBW (clean energy) rose +2.9%.  FXI (Chinese ADRs) slipped 1.17%.

SPX slid 4.66 points to close at 903.47, just above its 10-day MA and the 900 level.  The MACD went down.

Nasdaq fell 6.7 points to close at 1727.84.  It stayed above its daily MAs and above 1700.  Its MACD was flat.

The market was on its way to test the recent highs.  But, after the Fed minutes, investors chose to lock in profits quickly.  VIX closed slightly above 29 after sinking below 27 in the morning.  However, both SPX and Nasdaq managed to stay above their respective 10-day MAs and their respective key levels (SPX 900 and Nasdaq 1700).  Trading was very choppy today, especially in the afternoon.  The bulls seem to be a little more cautious after the comments from Fed.  Some sectors do seem overbought for the near-term (for instance, the agriculture, MOO), but, other sectors seem to be ready to break higher (for instances, metals and mining, XME and GDX).  We'll continue to watch the financials for clues to the health of the rally overall.

Good night and HappyTrading! ™