The market was on its second day of consolidation, as discussed in our Trading Room. We locked in solid profits on IBM and SNDK yesterday, with a +145% profit on IBM and +104% gain on SNDK (we bought these at the beginning of last week):
- 07:28 | HappyTrading SNDK ($52.05) Sold to Close 12C48 Dec 48 calls, at $4.55 +104%
- 07:03 | HappyTrading IBM ($192.90) Sold to Close 12C190 Dec 190 calls, at $4.65 +145%
Then, we jumped into NFLX for quick intraday trade in our Ecstatic Plays (Click HERE to find out more about our new service Ecstatic Plays!). We came away with a +86% profit in just 3 hours:
- 10:38 | Ecstatic Plays NFLX ($71.55) Sold to Close 1209C70 Dec 70 calls, at $3.35 +86%
- 10:27 | Ecstatic Plays NFLX ($71.10) Sold to Close 1209C70 Dec 70 calls, at $3.10 +72%
- 07:33 | Ecstatic Plays NFLX ($68.70) Bought to Open 1209C70 Dec 70 calls, at $1.80
Today, the market traded flat again. We got out of our WYNN puts early, but, picked up some AMZN puts and turned a quick profit:
- 10:37 | Ecstatic Plays AMZN ($190.15) Sold to Close 1209P190 Dec 190 put, at $3.40 +39%
- 10:33 | Ecstatic Plays AMZN ($191.70) Sold to Close 1209P190 Dec 190 put, at $3.00 +22%
- 09:53 | Ecstatic Plays AMZN ($192.60) Bought to Open 1209P190 Dec 190 put, at $2.45
- 07:26 | Ecstatic Plays WYNN ($115.90) Sold to Close 1209P115 Dec 115 put, at $2.00 +8%
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Agriculture stocks finally bounced today, as discussed in my Market Forecast this weekend. CF jumped +4.28%; POT added +3.91%; MOS gained +3.44%; MON advanced +2.79%.
The Dow was up +52.3 points; SPX added +1.39 points; Nasdaq slid 6.2 points:
GLD (gold) and SLV (silver) bounced today. GDX (gold miners) added +2%. XLF (financials) was flat. XME (metals and mining) eked out a small gain. FDN(internet) was on the weak side. OIH (oil services) slid 1.05%.
SPX
SPX added +1.39 points to close at 1258.47, still below 1260. Its daily MAs and MACD went slightly up.
Nasdaq
Nasdaq slid 6.2 points to close at 2649.56, just below 2650. Its 20- and 30-day MAs were flat. The MACD went higher.
After last week's tremendous rally, this market needs some rest. It has been consolidating for the past couple of days. While we are seeing some profit-taking, at the same time, dip-buyers seem to keep the market afloat. The market has a hard time keeping above 1260, for now. The market appears to be cautious, perhaps waiting for concrete plans out of the EU summit. VIX has been climbing a bit after briefly sinking to 26 on Monday morning. It closed just above 28 today.
Chinese internet stocks continued to underperform the broader market. BIDU was down 2.51% and SINA sank another 5.47%. WYNN and LVS which are "China-related" stocks were also weak today. WYNN lost 3.37%. PCLN has also be sliding lower. After trading above $550 on the recent earnings report, PCLN quickly dropped down to $460 and has not been able to gain its strength back. It closed at $479.1 today. These stocks could be very interesting this month. If the market does not break out, these stocks could see new breakdowns. If the market does push higher, because these stocks have been lagging, we could see them bounce and perhaps even see some short squeezes!
We are still mostly in cash, after cashing out on Monday morning. This market may need another day or 2 to sort things out. So, be a little more patient, and don't chase trades!
Good night and HappyTrading! ™
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