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How Fast Things Can Turn: SPX, Nasdaq, APA, BP, RIG, DO, CME, ICE, V, MA, RIMM, AAPL, ORCL

|Includes: AAPL, APA, BB, BP, CME, DO, ICE, MA, ORCL, RIG, SPDR S&P 500 Trust ETF (SPY), V

Just this Monday, things seemed ready to break out with the Chinese yuan finally loosening its peg to the dollar.  A couple of bad housing reports and a few days later, this market is at the verge of breaking down again!  SPX shot up above 1131 on Monday morning; today, it closed below 1080, at 1073.69.  That's a 58-point swing in 4 days!

Energy stocks were very weak today.  BP recorded a new low today, closing below the $29 mark, a level not seen since summer of 1996!  RIG slumped 5.71% and DO dropped 4.42%.  APA continued its plunge, down another 2.75%.  ICE, which traded to almost $130 last week, found itself trading below $115 today.  CME still saw no strength and gave up more than $10 to finish just above $290.  V and MA both spiked up on Monday on a credit card fee compromise.  During the past 3 days, both V and MA gave back all of their gains from Monday.

After the market, RIMM reported solid earnings, but, missed the average estimate.  It announced a share buyback program.  But, investors still saw no answers for iPhones (Apple) and Droid phones (Google).  Like I said yesterday, a more versatile phone is what RIMM needs to compete in the smartphone arena.  On the other hand, AAPL's new iPhone release seemed to be going well; its stock was up $1.45 in after-hours.  ORCL shares jumped more than +4% as it reported stronger sales with the help from its acquisition of Sun Microsystems.

The Dow was down 145.64 points; SPX lost 28.35 points; Nasdaq fell 36.81 points:

OIH (oil services) led the market down with a 2.98% drop.  XME (metals and mining) fell 2.71%.  SOXX (semiconductors) slumped 2.94%.  GLD (gold) and SLV (silver) both managed small gains.  XLF (financials) lost 1.79%.  FXI (Chinese ADRs) slid 1.19%.

SPX

SPX lost 18.35 points to close at 1073.69, below the 1080 level.  its daily MAs and MACd turned lower.

Nasdaq

Nasdaq fell 36.81 points to close at 2217.42, below its daily MAs.  Its MACD also turned down.

This market has quickly turned from a possible breakout to a potential breakdown!  Both SPX and Nasdaq closed below their daily MAs.  SPX closed below a very important support level, 1080.  The MACD on both SPX and Nasdaq have turned down.  VIX rose up to test 30 today and closed at 29.74.  These are all bearish signals.  If the market can fight back above SPX 1100, this market would still be range-bound.  If the market keeps below the 1080 for another couple of days, most likely, we'll see another test of SPX 1040.  So, be very careful.  We've closed most of our long positions and are now sitting on mostly cash.

Good night and HappyTrading! ™



Disclosure: no positions