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The market continued with its sliding today. Stocks were weak across the board. GOOG broke below $300 and closed at $291. BIDU lost 4.11% to close at $182.99! RIMM fell 5.86% while AAPL barely closed above $90, losing 4.91%. I have been doing some quick trades on the ultrashorts. EEV, SKF, DUG, and FXP were all strong. These ultrashorts make huge moves so even with trading just the stocks, pretty good profits can be made. The premiums are high on these options and the bid/ask spreads are wide, and thus, not as easy to trade. EEV jumped +15.05%; DUG added +14.01%; SKF was up +11.49%; FXP advanced +7.72%. All of these traded even higher in AH trading this evening.
The Dow was down 411.3 points; SPX lost 46.65 points; Nasdaq fell 81.69 points:
Miners were hit hard today: XME (metals and mining) -11.11%; GDX -10.35%. Energy sectors were also weak: XLE -8.19%; USO (oil) -4.91%; OIH (oil services) -7.61%; UNG (natural gas) -5.22%; PBW (clean energy) -11.89%. FXI (Chinese ADRs) slumped 3.87%.
SPX
SPX lost 46.65 points to close at 852.3. It closed just above the 850 level. The daily MAs turned lower. MACD went lower.
Nasdaq
Nasdaq lost 81.69 points to close at 1499.21. It closed just below the 1500 level. Its daily MAs and MACD all went lower.
On Monday, I wrote, "Any downward movement can push the market to test the recent lows again (SPX 850; Nasdaq 1500)." Last night, I said, "From where the market closed today, it is much more likely to test the recent lows (SPX 850; Nasdaq 1500) before going above that 30-day MA." And, here we are: SPX 850 and Nasdaq 1500 being tested. After the market, INTC slashed its 4Q outlook. INTC shares fell more than 7% in AH trading. Techs were all hit too. Looks like we'll see a gap down tomorrow. Then, we'll have to see if the market has any strength to come back to SPX 850 and Nasdaq 1500. VIX closed above 66 today and could easily test 70 tomorrow. If the downward momentum is strong, we could see SPX go all the way to 800, which was the 2002 low.
Good night and HappyTrading! ™
