It was a "fun" day on the market today. The market started out pretty solidly, and then, became a bit unstable. The first thing I said, this morning, in our Trade Room was:
HappyTrading
good morning!
market
I think we're going sideways for a few hours...
With VIX coming down to almost 40, the market really does follow the charts. This allowed me to forecast the market directions step-by-step throughout the day. At the same time, I was throwing out trade ideas. It was really enjoyable seeing the market "behave"! Here are some of my comments:
CELG
shooting up!!
BIIB
also strong...
CME
I think we can look for re-entries in the afternoon; let's see how the market does...
market
seems to want to go higher; but, the technicals are topping out on intraday charts. it needs to go up-and-down in a tight range for a few hours to create more room on top. so, no hurry... (This is the point where the chart showed that it had a higher probability of going higher, but, needed some time to work off the profit-takers.)
GOOG
market will need GOOG's participation to go higher...
here's the churn... (At this point, market dropped fast; a lot of shorts piled in and got trapped)
market
here we go: churn the other direction; although this time we may be sloping higher... (At this point, market turned back up, and proceed to go out of the tight range)
CME
waking up... (CME traded at around $195)
SKF
new leg down... (SKF was at around $155)
After that, the market just kept on going! SKF ended at $142.06 today. CME closed above $200! Reading charts really does help and having someone else read them for you is even better! You can get access to these comments throughout the day from our Trade Room and get published trades from our other Premium Services. We also got a nice a very nice compliment from one of our members today:
Happy,
... I trade several systems, two internal and one from an advisor , and you're the best trader I've seen...
I appreciate you and your website. It's been very helpful to us.
Thanks trjx!! We (I say "we" because there are many very experienced traders/investors sharing their trade ideas and thoughts about the market) will continue to adjust our trading strategies to adapt to the ever-changing market conditions so that we can make the best decisions in our trades.
The financials extended their gains today. PRU flew up +26.77%!! GS added +5.26% and is all of a sudden closing in on $100! MS gained +7.42%. STI jumped +16.4%. The Dow closed up +239.66 points; SPX was higher by +29.38 points; Nasdaq hopped +54.46 points:
Wow! We haven't seen so many green sectors on the same day for a LONG time! MOO (agriculture) was one of the few sectors closed red (this could be the nice pullback that we discussed yesterday). BTK (biotechs) had a nice day, up +6.03%, leading the techs. XLF finished with another "double-digit" gain, +10.3%. USO (oil) added +7.34% and inspired buying in the energy sectors. XLE (energy) was up +3%. PBW (clean energy) garnered +5.42%. FXI (Chinese ADRs) advanced +3.48% (we talked about these two days ago).
SPX
SPX jumped +29.38 points to close at 750.74. The 10-day MA flattened. The MACD went up.
Nasdaq
Nasdaq gained +54.46 points to close at 1426.1. It closed above its 20-day MA. The MACD continued higher.
On Tuesday, we talked about SPX 750 and Nasdaq 1400 (the 20-day MAs), and, we are there! (It's amazing how these levels work. The human mind really needs points of reference to function. We talked about the market bounce on 3/4, more than a week ago. If you missed that article, here is a link for it: Time To Rally Or Bust!!) Both SPX and Nasdaq closed above their 20-day MAs. Graphically, Nasdaq looks stronger, again, as it is almost challenging the 30-day MA. Nasdaq's 10-day MA has already curved up! The "bearish" trend is "starting" to change as the 10-day MAs are turning. But, have we gone a little too far in just 3 days?! Perhaps. Ideally, it will be good to see the 30-day MAs tested. If the market opens strong again, I think we can see some solid profit-taking. Plus, it's Friday. It's time to hold some cash for the weekend!
Good night and HappyTrading! ™
