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Rising Dollar Pressures Commodities

|Includes: AAPL, BIDU, Cleveland-Cliffs, Inc. (CLF), GOOG, MEE, WYNN

As expected, the market saw profit-taking today.  Commodities were pressured as the dollar jumped.  Euro sank lower as European leaders tried to find a solution to Greek credit crisis.  Gold sank below $1090/ounce and oil slipped below $81/barrel.  Bucking the trend, coal stocks stayed strong:  CLF +2.93% (new 52-week high), WLT +1.13% (new 52-week high), ANR +2.09%, and MEE +3.69%!

BIDU jumped above the $600 this morning and went as high as $613.44.  It closed at a closing high of $608.5, up +$13.62.  GOOG went below $540 this morning, but, it came back in the afternoon.  There was news that two companies had stopped registering new domain names in China because the Chinese government has begun demanding pictures and other identification documents from their customers.  GOOG ened the day up +8.33, or +1.52%, at $557.33.  AAPL peeked above $230 today, a new all-time high.

We locked in some profits today, including a +33% win on AAPL
March 24, 2010
08:17 | HappyTrading WYNN ($75.50) Sold to Close 04C75 Apr 75 calls, at $3.30 +32%
07:49 | HappyTrading AAPL ($230.00) Sold to Close 04C230 Apr 230 calls, at $6.30 +33%
07:27 | HappyTrading AAPL ($229.60) Sold to Close 04C230 Apr 230 calls, at $6.00 +26%

These AAPL APR 230 calls went as high as $6.35 and closed at $5.9.  We also closed out the rest of our WYNN trade.

The Dow was down 52.68 points; SPX lost 6.45 points; Nasdaq fell 16.48 points:

GDX (gold miners) slumped 3.93%, while XME (metals and mining) slid 1.04%.  USO (oil), UNG (natural gas), GLD (gold), and SLV (silver) all traded lower.  SOXX (semiconductors) slipped 1.91%.  FXI (Chinese ADRs) was down 1.16%.

SPX

SPX lost 6.45 points to close at 1167.72, below the 1170 level.  The daily MAs were up slightly and the MACD flattened.

Nasdaq

Nasdaq fell 16.48 points to close at 2398.76, just below the 2400 level.  Its MACD stayed flat.

The day after both SPX and Nasdaq finally closed above their respective key levels (SPX 1170 and Nasdaq 2400), the market lost them again!  VIX almost touched 18 today, closing up 1.2 points at 17.55.  We know that this rally is extended, but, it has been keeping its strength.  Tomorrow, we will get the latest jobless claims data; and on Friday, we will see the latest GDP numbers.  Since SPX and Nasdaq stayed close to the key levels, the market can rally higher on better economic numbers.  Of course, the market will not hesistate to take profits if the economic numbers disappoint.

Good night and HappyTrading! ™



Disclosure: no positions