It was a very volatile day. The market started lower with unfavorable retail data in the morning. Selling pressure was on GS as it sold $5 billion of stock to repay federal loans. Other financials got dragged lower as well. Oil services were among the few sectors that were in the green. The market slid lower as investors awaited for INTC to report earnings. After the market, INTC delivered a solid quarterly report, beating the estimates. It also predicted that the PC industry hit a bottom in the first quarter. Nevertheless, INTC shares traded lower in AH trading.
This morning DNDN revealed positive data for its prostate-cancer drug Provenge. Its shares surged as high as $22.1 from yesterday's close of $7.3. DNDN ended at $16.99, up +132%!! ISRG, which reports on Thursday, received an upgrade today and pushed higher, ending at $118.07. ISRG has gone from $100 to an intraday high of $120 in 3 trading session. After the market, EBAY announced its plans for a Skype IPO. EBAY shares went up almost +3% in AH trading.
The Dow was down 137.63 points; SPX lost 17.23 points; Nasdaq dropped 27.59 points:
Most sectors were lower. XLF (financials) tumbled 6.59%. XME slid 2.65%. Tech sectors were only slightly lower. OIH (oil services) added +1.52%. UNG (natural gas) bounced +2.26%. FXI (Chinese ADRs) was basically flat.
SPX dropped 17.23 points to close at 841.5. Its daily AMs went higher, but, the MACD flattened. Nasdaq is depicting a very similar picture, so, we'll only look at SPX's chart tonight.
We have been very cautious as the market got toppier and toppier. Yesterday, in my article, I said, "... the market does look toppy, and may need to take a rest and catch its breath." We cashed out most of our positions today, protecting our profits, closing out April options, and staying mostly in cash. Although the market slid, both SPX and Nasdaq stayed above their respective 10-day MAs. Nasdaq closed above 1600, but, SPX fell below 850. The 10-day MA is the next support. This market has been overbought for the near-term. Some consolidation and profit-taking is healthy, as long as the daily MAs stay in their bullish formation and act as strong support levels. This is the options expiration week, so, the trading is expected to be volatile. Unless the market shows a clear direction, trading lightly and staying mostly in cash may not be a bad idea.
Good night and HappyTrading! ™