from MyHappyTrading.com by HappyTrading! ™ Sign up for FREE membership!
The market hung around flat to higher for most of the day. But, in the last 2 hours, it finally succumbed to the pressure of profit-taking in the energy and commodity-related sectors. The market struggled while political drama over the rescue plan for the automakers dragged on. It seems that every time a rescue plan goes into Congress for discussion, the market crumples. If they drag any longer, we might just need the “firefighters” to come in:
The financials have been strong for the past couple weeks, and, are finally feeling the fatigue these past few days. Today, the financials led the market down again: WFC -11.27%; BAC -10.67%; JPM -10.68%; C -8.8%; PNC -11.46%; COF -13.19%. After the market, BAC announced plans to cut up to 35,000 jobs in the next 3 years in order to absorb Merrill Lynch & Co. BAC shares fell slightly more after the market. SKF (financial ultrashorts) picked up almost $4 in AH trading on top of its $17 gain during the day. We traded ”long plays” earlier this week, and switched to “short plays” this afternoon:
HappyTrading market
screaming down; could be going below the daily MAs tomorrow.
SRS
got a quick +50% gain on Dec 90 calls; got in at $8 out at $12. could probably wait until tomorrow for a bagger, but, this market is so volatile, I’m locking in the profits.
billbigD
COF- Took puts off $5 or 250%
angar
SRS - No worry happy. I am sitting on SRS 95 calls from 5 and now they are 12.5 . 
please advise how the chart looks for SRS/SKF when time permits. Thanks in advance! (You can see the comments on SRS and SKF in our Trading Room)
This market is so volatile. Big swings at the end of the day seem to have become a norm! The Dow closed down 196.33 points; SPX lost 25.65 points; Nasdaq fell 57.6 points:
Techs were weak today, with INX2 (internet) down 4.2%. XLF (financials) tumbled 7.68% and HGX (housing) crashed 7.14%! XME (metals and mining) gave back 4.89% after a few days of continuous gains. PBW (clean energy) fell 4.47%. FXI (Chinese ADRs) dropped 3.59%.
SPX
SPX lost 25.65 points to close at 873.59. It closed at its 10-day MA. The MACD flattened.
Nasdaq
Nasdaq fell 57.6 points to close at 1507.88. It also stopped at its 10-day AM. The MACD was slightly higher.
The market could not seem to break above SPX 900 today. It tried all day, but failed. Now, we have to look to see if the old supports will hold tomorrow (SPX 850; Nasdaq 1500). With the market down nearly 3%, VIX hardly moved! VIX went below 53 today, but, managed to come back to close above 55. It looks like the market could be trading in a tigher range for a week or two. The daily MAs have begun to cross (10-day MA above 20-day MA) and the 30-day MA has flattened. But, the 30-day MA has not turned up yet, indicating more consolidation and setting up bases. As long as the 10-day MA stays above the 20-day MA, the recent support levels should hold, although we could see SPX visiting 800 and Nasdaq testing 1400.
Good night and HappyTrading! ™
