This morning, after more lousy housing and durable goods data, the market sank lower. We took the opportunity to lock in our profits on the downside plays:
August 25, 2010
10:56 | HappyTrading MLM ($72.30) Sold to Close 09P75 Sep 75 puts, at $4.30 +62%
07:34 | HappyTrading PCP ($111.70) Sold to Close 09P115 Sep 115 puts, at $5.50 +10%
07:02 | HappyTrading AAPL ($237.80) Sold to Close 09P240 Sep 240 puts, at $9.00 +15%
This market still can turn fast, so, we were not greedy. Of course, after the first hour of trading, buyers started to come in. Techs were strong and led the market. GOOG came out with a new feature in its Gmail, enabling users to make calls from microphone-equipped computers to telephones virtually anywhere in the world. GOOG traded up $3.23. AAPL was up almost $3, while AMZN gained +1.86%. Even RIMM, which has been falling consecutively for about 2 weeks, bounced +1.44%. AKAM added +2.65%.
Gold and silver both traded higher. Silver seemed to have broken out today, with SLV (silver ETF) rising +3.06%. PAAS, a silver miner, jumped +5.54%. Gold miners were strong as well: GOLD +2.7%, ABX +3.08%, NEM +2.84%.
The Dow was up +19.61 points; SPX added +3.46%; Nasdaq gained +17.78 points:
BTK (biotechs) led the techs with a +1.91% gain. USO (oil) bounced +1.89%. XLF (financials) barely finished in the green. HGX (housing) jumped +2.67% even though the latest housing data were disappointing. FXI (Chinese ADRs) was flat.
SPX
SPX added +3.46 points to close at 1055.33. It closed above its daily lower BB.
Nasdaq
Nasdaq gained +17.78 points to close at 2141.54. Its daily MAs and MACD still went down.
As I said last night, "There may be bounces here and there..." However, the market really didn't go anywhere. Nasdaq is now showing a new bearish formation in its daily MAs. Tomorrow, we have the latest jobless claims numbers. If the numbers are favorable, we could see the market bounce some more. The 10-day MAs should now be the closest resistance. So, we might see SPX test 1070, or, even 1080 if GDP on Friday can show that the economy is still improving. TLT (20-year Treasury ETF) has risen fast-and-furiously. It topped $109 today, but, finished in the red. We could see some profit-taking on TLT this week.
Good night and HappyTrading! ™ 
(click to see our Facebook Page)
