Last night, in my evening article, I said,
"The commodity sectors took a breather today. Coals and steels, however, were mostly green. Gold and silver plays finally saw some profit-taking today, but, I don't think they are done going up. We'll see if the commodity sectors can draw new buyers in tomorrow and resume their rally."
Today, commodity sectors came back up again! Coals and steels strong, as well as gold and silver plays: AEM +5.22%, PAAS +5.5%, FCX +2.33%, X +3.27%, BTU +2.26%. Energy stocks were also up as both oil and natural gas traded higher. Oil services sector broke out higher: DO +3.84%, RIG +1.79% (we started a new long position in this), SLB +1.87%.
The major market indices continue to make new highs. The Dow was up +80.26 points; SPX added +10.77 points; Nasdaq jumped +23.63 points:
As we can see from the list of sector ETFs and indices, most sectors participated in today's move higher. INX2 (internet) continued to show strength, up +2.31%. XME (metals and mining) came back up +3.17% while GDX (gold miners) added +3.22%. OIH (oil services) gained +2.15%. USO (oil) and UNG (natural gas) were both green, with UNG hopping +10.69%!! XLE (energy) tacked on +1.73%. FXI (Chinese ADRs) rose about +1%.
SPX
SPX added +10.77 points to clsoe at 1044.14, above the 1040 level. Its daily MAs and MACD curved higher.
Nasdaq
Nasdaq jumped +23.63 points to close at 2084.02. The daily MAs and MACD went up.
The market showed a lot of strength today. New money kept rolling in! I mentioned yesterday that VIX should test the support at 23, and, it did so today. But, as VIX bounced off of 23, the market did not sell off. Instead, it kept powering higher until the close. These are bullish signs! Nasdaq has started riding its daily upper BB higher; and, SPX has also caught up with its daily upper BB. The intraday charts on many leader stocks are getting toppy, but, their daily charts are still strong. On Monday, I mentioned that we need to pay attention to the commodity and tech sectors at this juncture. These are the sectors that will lead this market higher. The financials do not necessarily need to be in the front for the market to go higher. Techs are staying strong. SOXX (semiconductors) is at a new 2009 high! Commodity trades are certainly still on. Miners have been strong and now energy stocks are pushing back up.
We might see some profit-taking, but, it looks like money on the sidelines are looking to come in on pullbacks. Although VIX managed to close above 23 today, it does not look like that support will hold this time. Below 23, there's a soft support at 21.
Good night and HappyTrading! ™
