The market was a bit volatile in the morning, but the techs were strong enough to push the market to close with some solid gains. Yesterday, in my Market Forecast, I said, “We are also seeing money being rotated. Techs are now looking better than the overall market.” This morning, on the member site, I commented:
HappyTrading
Posted May 27, 2008 at 7:31 am | Permalink (Edit)
market
could get much stronger today as VIX seems to be getting toppier and toppier.
We waited patiently on the sideline with cash in hand. Now, money seemed to be rolling back into the market, favoring the techs, and we are ready for some actions. We initiated some new trades today and already cashed out on RIMM with some good intraday profits, as high as +23.7%:
HappyTrading
Posted May 27, 2008 at 10:43 am | Permalink (Edit)
RIMM ($132.3)
RULFW, June 135 calls, bought at $4.85
HappyTrading
Posted May 27, 2008 at 11:44 am | Permalink (Edit)
RIMM ($135)
RULFW, rest out at $6 (for now; will see what happens tomorrow)
These options traded as high as $6.45 and closed at $5.9.
After lunch, the market just got stronger and stronger, finishing the day with the Dow being up +68.72 points, SPX adding +9.42 points, and Nasdaq gaining +36.67 points:
SOX (semiconductors) +1.7%, INX2 (Internet) +1.25%, and SWH (software) +2.24% led the market higher. XLF (financials) and HGX (housing) found some strength, adding +0.53% and +1.49%, respectively. USO (oil) and UNG (natural gas) deflated by 2.52% and 1.15%, respectively. Metals were weak: GLD (gold) -2.05%, SLV (silver) -4.25%, and XME -0.9%. FXI (Chinese ADRs) eked out a small gain, +0.39%.
SPX
SPX added +9.42 points to close at 1385.35. Its MAs moved up a little, trying to keep their bullish formation. The MACD slid slightly.
Nasdaq
Nasdaq jumped +36.57 points to close at 2481.24. It closed above its 20-day MA. The MACD flattened.
The market saw bullish actions today, especially in the technology stocks. VIX went as high as 20.95 today, but, did not go above the resistance at 21. It came back down to close below 20, at 19.64. This is better; I’d still like to see it below 18. Money seems to be rolling out of the commodities-related sectors and into the techs. Semiconductors, Internet, and software seem to be catching some focused buying.
The popular leaders among techs were back in action today. AAPL, GOOG, RIMM, AMZN, and BIDU all made solid gains, with GOOG leading the pack, advancing +3% (we initiated a new position in GOOG). AMZN was strong at near the close, as I commented on the member board:
HappyTrading
Posted May 27, 2008 at 12:20 pm | Permalink (Edit)
AMZN
above $80 looks really good.
SWH added +2.24% today and it’s worth taking a look at its top 10 holdings. Among these, I like BMC, ORCL, SYMC. ORCL could be challenging its 52-week high of $23.31 soon.
Good night and HappyTrading! ™
