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What a difference a day makes! Yesterday, the market rushed to dump the financials stocks. Today, the market bought them back hand-over-fist (MS +28.70%; PNC +37.09%; JPM +25.1%; GS +18.07%)! Among the top “point” gainers were: GOOG +$20.33; CME +$21.51; RTP +$8.32; MA +$12.92.
The market was choppy in the morning. But, soon after lunch, we saw a shift in the direction, as I commented in the Trading Room:
ng/default.aspx">HappyTrading GS puts
rest out for now…
VIX
dropping; market heading up!
We took profits on most of the GS puts yesterday just before the market close and letting the rest ride on house money. Today we cashed the rest out just in time. We got out of puts and started getting into plays on the “long” side:
HappyTrading RIMM
took some quick profits on Feb 50 calls; in at $4.9, out at $5.55
HappyTrading AAPL/GOOG
screaming!! 8 minutes left!
After the market, AAPL delivered an outstanding earnings report and saw its shares jump almost +10% in AH trading! GOOG traded another $5 higher after the $20 gain during the regular session. GOOG reports tomorrow.
The market almost gain back all of yesterday’s losses. The Dow was up +279.01 points; SPX added +35.02 points; Nasdaq advanced +66.21:
XLF (financials) bounced +14.73%!! USO (oil) also went higher, up +8.27%, which seemed to strengthed the energy-related sectors: OIH (oil services) +9.27%; XLE (energy) +6.72%. XME (metals and mining) added +8% while GDX (gold miners) rose +2.49%. FXI (Chinese ADRs) went up +5.73%.
SPX
SPX added +35.02 points to close at 840.24. It bounced back from the support at 800. The MACD flattened.
Nasdaq
Nasdaq gained +66.21 points to close at 1507.07, above the 1500 level. Its MACD was slightly lower.
Has the market just redeemed itself? VIX came down to close at 46.42, below 50. Still these couple of days showed tremendous volatility. SKF went from $155 to $200 yesterday, only to come back to close at $152.4 today (a $45+ swing each day)!! AAPL’s report should give the market more bullish momentum tomorrow, especially the techs. IBM, up +11.51%, certainly helped the market today! Tomorrow, we have GOOG’s earnings. Can the market get 3 out of 3 reports from big bellwether companies? While techs may be catching some positive attention, this market is still all about the financials. The last 2 days have been great examples. So, we’ll keep our eyes the big names in the financial sector. SKF has also been a very accurate gauge instrument, which is inversely related to the market.
Good night and HappyTrading! ™
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