Well, the Fed held the interest rates steady, as expected by most. The techs led the market up. Just before the Fed announcement came out, I said on the member board:
HappyTrading
Posted June 25, 2008 at 11:06 am | Permalink (Edit)
market
what I do see is that VIX is near 21; if it pushes lower, the market reaction should be good. techs are positioning for a bounce. Commodities got driven down hard in the morning and created room for themselves to bounce with the market.
After the Fed announcement, the VIX went down to below 20.4, and, Nasdaq jumped to above 2420! Commodity-related sectors were down big in the morning and most of them bounced up quite a bit. X, for example, traded below $185 in the morning, and bounced up to close in the green at almost $192! On the technology side, BIDU and AAPL led the charge. BIDU closed up more than $25, or +8.27%, while AAPL added +2.39%.
After the market, RIMM reported record earnings, but outlook was not particularly impressive. RIMM shares traded down 7.83% in after-hours (AH) session. ORCL also reported good earnings but was tepid on its forecast. ORCL was down 3.46% in AH.
Elsewhere, shipping companies made their bounces today. DRYS, GNK, and EXM lead the sector up with gains of +6.97%, +11.17%, and +7.19%, respectively. ATW received an upgrade today and jumped +4.29%, while the rest of the oil services sector was under a little pressure. I think ATW could be staging for a break out to catch its all-time high of $113.56 set back in April. So, I’ll be keeping an eye on this one.
Let’s take a look at the overall market. The Dow closed up just +4.4 points; SPX added +7.68 points, and Nasdaq gained +32.98 points:
VIX was down 5.71%, but, managed to close above 21. The techs led the market: INX2 (Internet) +1.5%; SOX (semiconductors) +1.87%; BTK (biotechs) +1.28%; and SWH +2.34%. USO (oil) lost 2.21% while UNG (natural gas) was down 2.75%. XLE (energy) and XME (metals and mining) slipped slightly. FXI (Chinese ADRs) added +2.23%.
SPX
SPX closed up +7.68 points at 1321.97. It touched its 10-day MA today, but pulled back. Its MACD was down slightly.
Nasdaq
Nasdaq gained +32.98 points to close at 2401.26, above the 2400 mark. It also tested its 10-day MA intraday. Its MACD slipped.
The market is looking like it’s attempting to bounce. But, after the market, the reaction to RIMM and ORCL earnings were not encouraging. VIX went below 21 today, but, closed above. If VIX continues lower tomorrow, the market could be drawing a bottom here. We’ll have to see how the techs react to RIMM and ORCL’s earnings tomorrow. Above 2400, Nasdaq is not in a terrible position. We need to see SPX above 1340 to feel more comfortable.
Good night and HappyTrading! ™
