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Market Breaks Above Key Resistance!

|Includes: AAPL, AMZN, APA, APC, BA, BlackBerry Ltd. (BB), BBY, BHP, BP, BUCY, CLF, DO, GOOG, JOY, MA, PCP, RIG, V, WLT

Once again, the afternoon weakness, that occurred yesterday, turned out to be another shakeout!  Today, the market cooked up a broadbased rally.  So far, the market has behaved exactly as discussed in my Market Forecast this weekend.  Techs were very strong today.  RIMM led the charge with a +5.85% gain, while AAPL, AMZN, GOOG added +2.13%, +2.43%, +3.06%, respectively.  We traded GOOG calls yesterday and added more this morning.  We cashed some nice profits out before the close today with gains as high as +98%:

June 15, 2010
11:38 | HappyTrading GOOG ($499.30) Sold to Close 06C500 Jun 500 calls, at $5.00 +98%

Miners continued to push higher:  CLF +3.23%, WLT +3.43%, BHP +2.99%.  JOYG and BUCY also traded higher, +3.61% and +4.97%, respectively.  Oil stocks bounced today, even BP closed up +2.38%.  RIG jumped +8.33%; APC rose +6.45%; and, DO climbed +4.81%.

This morning, BA said that it plans to boost production of its 737 jet to meet the demand.  BA pushed up +4.1% and PCP traded +3.96% higher.

The Dow was up +213.88 points; SPX added +25.6 points; Nasdaq gained +61.92 points:

OIH (oil services) jumped +5.07%, while USO (oil) was up +2.62%.  XME (metals and mining) rose +2.63% and GDX (gold miners) added +2.55%.  SOXX (semiconductors) led the techs up +5.54%.  MOO (agriculture) bounced +2.83%.  Both GLD (gold) and SLV (silver) closed in the green.  FXI (Chinese ADRs) advanced +0.92%.


SPX added +25.6 points to close at 1115.23, above its daily MAs.  The 10-day MA turned up and the MACD sailed higher.


Nasdaq gained +61.92 points to close at 2305.88, above the 2300 level.  It also closed above its daily MAs.  The MACD went up as well.

A lot of analysts have been focusing on the 200-day moving average on SPX, which was at about 1110 today.  SPX closed above that level.  All 3 major market indices closed above their respective daily MAs.  VIX sank down to close below 26.  This rally basically started last Tuesday, in the late afternoon.  Although there definitely has been some volatile swings, the market has been running higher for 5 sessions.  So, we may see some profit-taking tomorrow, and some more volatility as there are only 3 days left to trade on the June options.

Some trading ideas:
Long side:
MA and V have been beaten down quite a bit.  If the market continues to push higher, MA and V have a lot of room to bounce.

Short side:
There are more bad news on BP after the market.  One report claimed that "A high-level executive at the [Bank of America] has ordered its traders not to enter into oil trades with BP that extend beyond a year from now."  BP dropped 3% in after-hours trading.  Along with BP, APC and RIG both trade lower, as well.

Good night and HappyTrading! ™

Disclosure: no positions