from MyHappyTrading.com by HappyTrading! ™ Sign up for FREE membership!
Yesterday, in my evening post, I commented,
“In one day, VIX went from 55 to almost 70! The downward momentum will likely continue tomorrow, at least in the morning… With VIX still at record highs, it will undoubtedly be another crazy day!”
Indeed, it was another crazy day! The market was lower in the morning, as the downward momentum carried through. But, just before lunch, things started to turn. In our Trading Room, I wrote:
HappyTrading
VIX
15-minute chart topped out; some buyers are starting to come in. lots of time, wait to see what hourly chart does…
Our members started to look for plays on the long side:
Allan B
Airlines…NWA, UAUA…flying along with VIX
Perry
yahoo - microsoft again
HappyTrading
DECK
has come down quite a bit from its initial earnings jump; should be interesting to keep an eye on.
Angar
UAUA - Dragon - do you like airlines and UAUA in particular due to falling oil prices. I thought UAUA was trading at 12 couple of weeks ago and wondering if I can pick up some Nov 10 calls . Thanks in advance
OptionDragon
angar good find…UAUA is my fav and LCC….GS’s fav is DAL…
goldy
1 min before close I will be buying GOOG Oct $360 calls (GGDJL)
I will excpect them to go to 0 tomorrow so I will not be buying more than 2-3 contracts
goldy
TSL, STP strong
Happy I like your FSLR play
pman
FSLR screaming…
OptionDragon
ABK and MBI wow!
Nice trading, and good sharing, “Happy” traders!! This is how our community works together. It is not as easy to see everything that happens on the market when you’re trading/investing by yourself. But, in our Trading Room, our members share trade ideas and their thoughts about the market, so, members can talk about their ideas and trade/invest with more confidence. Come join us, the Trading Room is only $49/month! Or, you can get a 30% discount (coupon code: YearlySpecial30) on an annual subscription for only $349.3. That’s less than a dollar per day!
Energy-related stocks were strong today. This morning SPWRA reported a 3Q profit that nearly tripled!! SPWRA jumped +24.55%!! Other solar stocks benefitted as well: STP +14.2%; ENER +13.74%; FSLR +14.72%. We already locked some profits on FSLR:
12:56 | HappyTrading FSLR ($143.50) Sold to Close HJQKR Nov 190 calls, at $6.00 +62%
Natural gas stocks were also very strong: APA +15.9%; HES +9.36%; UPL +10.42%; DVN +11.59%. These stocks have been beaten down a lot. If the market gets follow-throughs on this bounce, I think these will go higher. BTU also reported great earnings. BTU shares were up more than +18%! Coal stocks could be finding a bottom here too.
The Dow closed up +401.35 points; SPX added +38.59 points; Nasdaq jumped +89.38 points:
Techs were strong: INX2 (Internet) and SWH (software) both added more than +5%. XME (metals and mining) gained +4.65%. XLE (energy) garnered +3.81%. PBW (clean energy) jumped +6.51%. GLD (gold) and SLV (silver) were weak. FXI (Chinese ADRs) hopped +8.75%.
SPX
SPX added +38.59 points to close at 946.43. It tested the 900 level and bounced back. The MACD flattened.
Nasdaq
Nasdaq jumped +89.38 points to close at 1717.71. It closed above the 1650 level. The MACD flattened.
Both SPX and Nasdaq successfully tested their respective support levels (SPX 900; Nasdaq 1650) and bounced back. I am encouraged by the actions on the market today. The bounce was not driven by any particular news. No new “rescue” measures from the government; no rate cut rumors on the Fed. The market traded down in the morning as expected. It tested the support levels and bounced back to close strongly. VIX topped 80 today in the morning!! But, it closed down 1.64 at 67.61! Nice, “natural”, trading actions. What we need to see now is some follow-throughs on this bounce. Not just a half-day thing and fade away. We’ll need to see the market rally for a good few days, at least, to call this the bottom. After the market, GOOG reported earnings that, once again, beat the estimates. GOOG shares traded higher by more than +10%! Tomorrow should be an interesting day, as it’s options expiration day. We should see some morning strength. Then, we’ll have to see how things get played for the expiration day.
Good night and HappyTrading! ™
