First trading day on the new site, and we've got bagger (+100%) trades to show. The market was strong most of the day. The Dow slipped into the red briefly in the afternoon, but, was able to come right back to close in the green. Techs led the market again, and the commodity-related sectors tumbled further.
This weekend, in my Market Forecast, I mentioned that AMZN "could be heading higher". AMZN broke out this morning as analysts were optimistic about its Kindle products. We cashed the rest of our AMZN trade out with +120% gain:
07:25 | HappyTrading AMZN ($86.50) Sold to Close ZQNIP Sep 80 calls, at $9.35 +120%
These options went as high as $13.7 and closed at $10.92. The volume was strong on AMZN today, so, there might be chances for more profittable trades on this tomorrow. AMZN went as high as $91.75 today and closed at $88.09, up +9.41%.
WYNN also broke out this morning. This is such a momentum stock and when it takes off, it really flies. We cash out our trade from last Friday for a +55% gain:
07:24 | HappyTrading WYNN ($113.00) Sold to Close UWYIB Aug 110 calls, at $9.30 +55%
These options also went as high as $13.7 and closed at $10.6. If we had held on to the trade for just a couple of more hours, we could have scored another bagger trade (we bought these options at $6 on Friday). WYNN traded to almost $120 and closed at $114.67, up +6.57%. On the member board, last Friday, I said of WYNN:
HappyTrading
Posted August 8, 2008 at 11:33 am | Permalink (Edit)
WYNN
next resistance $115.
WYNN went above $115 in a hurry and closed just under. We might get more chances at this tomorrow also.
This is the options expirations week. So, when the market runs fast, there could some very lucrative plays in August options. I picked up CME Aug 350 calls today at $5.4:
HappyTrading CME ($345.00) Bought to Open CMEHG Aug 350 calls, at $5.40
and, sold it for a "daily double" for a +113% gain:
10:58 | HappyTrading CME ($356.50) Sold to Close CMEHG Aug 350 calls, at $11.50 +113%.
CME closed above its daily MAs. So, there should be a lot more room to go up for this. Those options closed at $6.4, bidding at $7.1.
OptionDragon also had some very nice trades today:
09:35 | OptionDragon MGM ($37.95) Sold to Close MGMHG Aug 35 calls, at $3.60 +100% (daily double)
09:45 | OptionDragon BAC ($33.67) Sold to Close BACHZ Aug 33 calls, at $1.55 +72%
It is so nice to have these trades now automatically formatted on our new site. Some of these trades were published "publicly" and are readily viewable on the main page from our "Happy Trades Live" panel. You can also see these trades on the member dashboard by clicking "All" on the "Happy Trades" panel. For $98/month, you can get both OptionDragon's and my (HappyTrading) trades directly into your mailbox. If you choose the "Golden Package" for 3 services, you can add the "Trading Room" (where members share information and trading ideas daily) for just $129/month! We also have a 30% discount right now for your next annual subscription of any services. The coupon code is: YearlySpecial30. To subscribe, please visit our Premium Serivces subscription page. And, remember, our basic membership is FREE; all you have to do is sign-up for an account!
The commodity-related sectors continued to slump. Metals, oil services, agriculture were all weak. X broke down below $130 to close at $128.46, down 6.51%. POT went as low as $156.95, but, came back up to close above $160, down 6.18%. CF dropped all the way to $120, closing at $125.33, down 6.92%.
The Dow was up +48.03 points; SPX added +9 points; Nasdaq gained +25.85 points:
VIX went below 20 today and closed just above. As I mentioned in my Sector Watch this weekend, techs continued to show strength: INX2 (Internet), SOX (semiconductors), BTK (biotechs) all made solid gains, +2.18%, +1.89%, +1.37%, respectively. On the other hand, commodities continued to be weak: XME (metals and mining) -5.47%; GDX (gold miners) -5.15$; GLD (gold) -3.91%. USO (oil) finished flat. XLF (financials) finished up +1.69%. FXI (Chinese ADRs) lost 1.94%.
SPX
SPX added +9 points to close at 1305.32. It closed above the 1300 level and its daily MAs formed a new bullish phase. The MACD went higher.
Nasdaq
Nasdaq gained +25.85 points to close at 2439.95. It went above the 2450 level intraday and rode its daily upper BB higher. Its daily MAs curved up. Its MACD glided higher as well.
The market is in a good position to continue going higher. Above 2450, Nasdaq's next resistance is 2550. SPX just formed a new bullish phase and finally closed above 1300. Its next resistance is 1340. VIX looks like it could test 19 soon. Commodity-related sectors made an attempt to bounce in the afternoon today. But, it looks to me that they still have some more room to fall. After the market, LDK reported solid earnings and sent its stock flying up almost +20%. Solar sector had been weak lately. This could provide some good incentive for buyers to jump back into this group. So, we'll be watching the solar plays tomorrow.
Good night and HappyTrading! ™
