My Happy Trading Community Articles

Last weekend, in my Market Forecast, I said,

"For the new week, SPX and Nasdaq look like they are on the start of a new leg down.  SPX 700 and Nasdaq 1300 are the nearest respective supports.  Although financials finished mixed last week (some even managed to make solid gains), XLF is still very weak."

The market did indeed plunge lower.  XLF had a terrible week and the financials led the market downward.  SPX and Nasdaq both closed below their respective support levels (SPX 700; Nasdaq 1300).  The market slumped on Monday and went lower on Tuesday.  On Wednesday, the market bounced back up.  But, Thursday brought the market to new lows!  The market basically closed flat on Friday as the shorts covered their positions near the end of the day.

Our published trades did well last week, including a +136% win on DNA.  Our HappyTrading members captured some good profits on Friday:
HappyTrading March 6, 2009 12:44 PM
DNA
locked in some profits at +136%.

angar March 6, 2009 12:46 PM
DNA - great trade happy !

trjx March 6, 2009 12:48 PM
Happy,
Great Trade on DNA

Thx

pw March 6, 2009 12:52 PM
Thanks Happy!!!

pc March 6, 2009 1:04 PM
Have a good one.
Congrats on the nice trades.

Here were the closed trades:
March 06, 2009
12:54 | ESI ($100.90) Sold to Close ESIOA Mar 105 put, at $8.60 -9%
12:43 | DNA ($90.70) Sold to Close DWNCQ Mar 85 calls, at $6.50 +136%
08:11 | POT ($66.00) Sold to Close PVZOM Mar 65 put, at $6.00 +33%
07:09 | FCX ($33.80) Sold to Close FCXCF Mar 30 calls, at $4.85 +28%

March 05, 2009  
08:58 | AMZN ($64.30) Sold to Close ZQNCM Mar 65 calls, at $2.90 -19%

March 04, 2009
08:44 | MOS ($42.25) Sold to Close MOSCI Mar 45 calls, at $2.40 +9%

March 03, 2009
10:00 | PNC ($25.00) Sold to Close PNCOE Mar 25 put, at $2.60 +4%

We have been sitting on the DNA calls since 2/18, and, they finally paid off!  On the other hand, if we were a little more patient with those PNC puts (just 2 to 3 days!), they would have been a near 300+% winner.  Those PNC puts traded as high as $8.8 on Friday, 3/6!  We all know that the market is very volatile right now.  Sometimes, a little more patient is needed.  Focusing more on the daily chart may be beneficial, not to mention less stressful!  (You can see our published trade live, and with email alerts, when you subscribe to our Premium Services.)  We once again scored on both puts and calls!

Let's take a look at where the market stands:
SPX

On Friday, SPX added +0.83 points to close at 683.38, below the 700 level.  The MACD and daily MAs were still down.

Nasdaq

Nasdaq lost 5.74 points to close at 1293.85, below 1300.  Its daily MAs and MACD were lower.

Both SPX and Nasdaq closed below their support levels.  The market continues to look very weak.  The financials, which we will take a look in a minute in our Sector Watch, still cannot seem to find much support.  Ultrashorts such as SKF, SRS, and FAZ just keeps going higher!!  But, as I said...

To read the rest of of this article, please subscribe to HappyTrading "Premium Articles" by going to the Premium Services page.  If you are already a subscriber, please click here: Market Forecast 3/9/09.