Yesterday, in my evening post, I said, “We need to see VIX back below $20 to feel more comfortable. The market major indices do still show bullish formations with their MAs. So, I’ll wait patiently with lots of cash on the sideline.” The market opened with a positive tone today, and, VIX quickly went under $20. This was a good signal. On the member site, earlier this week, I talked about a “Big Green Day” coming:
HappyTrading
Posted April 28, 2008 at 12:14 pm | Permalink (Edit)
market
shaping up for a big green day. I’d rather see some strength ahead of the Fed.
In the middle of the day today, when the market started to slide a little (doing some “breathing exercises”, as I’d call them), I tried to give some confidence to our members by saying:
HappyTrading
Posted May 1, 2008 at 10:54 am | Permalink (Edit)
market
this is the big green day that we’ve been talking about. Nasdaq has caught the daily upper BB. Let’s see if things can close even stronger.
Sure enough, the market took a breather and charged up higher in the last half-hour.
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Let’s take a look at how the market closed:
The Dow was up +189.87 points (above 13,000!); SPX added +23.75 points (above 1400!); Nasdaq jumped +67.91 points!
It looks like more money is going into the tech sectors, which I mentioned on Monday. INX2 (Internet), SOX (semiconductors), BTK (biotech), and SWH (software) all made substantial gains today. On the other hand, the commodity sectors slumped further: USO (oil), OIH (oil services), XME (metals and mining), GLD (gold) SLV (silver), UNG (natural gas), and DBA (agriculture commodities) all closed in the red. XLF (financials) and HGX (housing) performed well today as well, adding +3.42% and +2.59% respectively. FXI (Chinese ADRs) gained +2.12%.
SPX
SPX added +23.75 points to close at 1409.34, above 1400! It almost caught up with its daily upper BB. Its daily MAs extended their bullish formation. The MACD went higher.
Nasdaq
Nasdaq jumped +67.91 points to close at 2480.71. It has caught its daily upper BB! Its MACD perked up!
The market is looking strong, especially the techs. The broader market lags just a little, since the commodity sectors are giving up some gains. Are the leaders in the market shifting? VIX is below $19. There’s some support for it at $18. Breaking below $18, it may fall all the way to $14, with some soft support at $16. What I especially like about this jump in the market today is that the semiconductors were really strong, with SOX advancing almost +4% today.
Speaking of semiconductors, SMH also did well today, gaining +3.47%. Among the ADI+AMAT+INTC+KLAC+LLTC+MU+NSM+TXN+XLNX">top holdings of SMH, I like TXN, INTC, ADI, ALTR, and XLNX. For biotechs, IBB added +2.25% today. Among BIIB+BMRN+CELG+GENZ+GILD+ILMN+PRGO+SHPGY+TEVA">IBB’s top holdings, I like TEVA, PRGO, CELG, BMRN, GILD, and AMGN. IMCL, which is at near its multi-year high (it recently went above $49), may not see any significant resistance until $50.
On the member site, I will go over the charts on some of the above-mentioned names to show why I like some of these better than others from looking at the charts.
Good night and HappyTrading! ™
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