Gold jumped out of the gate today and did not look back, closing above $1230/ounce. In the morning, in our Trading Room, I commented:
May 11, 2010 7:14 AM
gold plays
breaking out!
May 11, 2010 8:11 AM
GOLD
could see $90+!!
We did get in on GOLD May 85 calls and cashed out for a +41% gain about 2 hours later:
May 11, 2010
09:25 | HappyTrading GOLD ($88.40) Sold to Close 05C85 May 85 calls, at $4.50 +41%
07:20 | HappyTrading GOLD ($86.20) Bought to Open 05C85 May 85 calls, at $3.20
In the late afternoon, GLD spiked up and gold miners went along with it. GOLD did go above $90 with a day high at $90.76. Those GOLD May 85 calls went as high as $6.4!! GOLD closed at $89.75, up +8.92%.
Other gold miners were strong as well: NEM +4.88%, ABX +4.49%, GG +6.26%, RGLD +3.75%.
BIDU was very strong today, closing at $714.17, up $19.39. Tomorrow, it will split 10 to 1. AAPL almost touched $260, but, came back down to close at $256.52, up just +1%.
After the market, DIS reported a solid quarter, but its shares slipped 3.3% in after-hours trading. ERTS beat its earnings estimates, but, the outlook was not enough to inspire the investors. ERTS shares were down 3.78%. CTRP's quarterly profit came in barely ahead of the estimates. However, its shares traded up +3.91%. ASEI traded higher after the market on its earnings report, delivering a stellar quarter. ASEI shares was up +2.13% on top of the +2.56% gain during the day session.
The Dow was down 36.88 points; SPX slid 3.94 points; Nasdaq added +0.64 points:
GDX (gold miners) led the market with a +6.9% gain! XME (metals and mining) was still weak, bogged down by the coal stocks. SLV (silver) jumped +4.64% while GLD (gold) added +2.63%. USO (oil) dropped 1.26%. FXI (Chinese ADRs) stayed weak, down 1.81%.
SPX
SPX slipped 3.94 points to close at 1155.79, below the 1160 level. The MACD went lower.
Nasdaq
Nasdaq barely closed in the green, at 2375.31. The MACD and daily MAs continued to slide.
The market gave another effort to pull out of the slump. Both SPX and Nasdaq tested their respective 10-day MAs. SPX came back down and closed below 1160 once again, while Nasdaq could not break the 2400 level. The market did a huge jump off of Europe's $1 trillion rescue package on Monday. But, today, we saw no follow-through on yesterday's rally as investors re-think about the effectiveness of $1 trillion rescue. The market looks ready to slide again. If SPX 1150 does not hold, the downward momentum should pick up. So, be a little more careful tomorrow. If the downward momentum picks up, we should look for downside plays again.
Good night and HappyTrading! ™ 
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