On Monday, in my evening article, I said,
"The market had a really strong day today and we could see some profit-taking tomorrow. SPX 1100 could be tested, but, I think we might need a couple of more days before breaking above that level."
Isn’t it funny how a couple of sentences can sum up the market actions for 2 days? On Tuesday, we saw some profit-taking and the market basically closed flat. Today, some buyers came back in and pushed the SPX above 1100 intraday. However, SPX closed just under 1100.
Nevertheless, we continued to lock in profits on our trades, all with +100% gain or higher:
November 11, 2009
11:49 | HappyTrading GOOG ($570.00) Sold to Close GOPLN Dec 570 calls, at $17.00 +133%
06:57 | HappyTrading GLD ($109.45) Sold to Close QCZLA Dec 105 calls, at $5.50 +100%
November 10, 2009
12:59 | HappyTrading CTRP ($65.37) Sold to Close QCTKL Nov 60 calls, at $6.60 +106%
All of the above trades were opened last week. Please visit our Premium Services (CLICK HERE) page to find out how to participate in our published trades.
Gold continued to make record highs, almost touching $1120/ounce today (discussed in Sector Watch this weekend). Oil was slightly higher. The dollar was still weak.
After the market, HPQ announced a $3.1 billion deal to by COMS. COMS shares vaulted more than +35% on the news! There are a lot of talks this evening about which company in this sector could be the next buyout target. Most people are focusing on IBM being the buyer, in order to compete with CSCO and HPQ. JDSU, BRCD, BRCM, and JNPR are among the potential buyout targets. JDSU traded up almost +8% in after-hours. Following PCLN’s strong earnings, CTRP reported a quarterly profit that jumped +80%, easily beating the estimates. Yesterday, in our Trading Room, I commented:
November 10, 2009 9:43 AM
CTRP
all-time high $70.89… we could see $70s if PCLN’s strength in business is indicative of the industry.
CTRP shares jumped +12% this evening, trading just above $72. Our remaining position on the CTRP Nov 60 calls should do really well tomorrow. We locked in enough profits already to let the rest ride through the earnings on house money. So, zero risk and huge gain potential.
The Dow finished up +44.29 points; SPX added +5.5 points; Nasdaq gained +15.82 points:
Most sectors were slightly green today. XLE (energy), however, was on the weak side. XLF (financials) strengthened with a +1.35% gain. SOXX (semiconductors) added +1.36%. GLD (gold) and SLV (silver) were both higher. HGX (housing) jumped +3.68% on better-than-expected earnings from TOL (TOL finished the day up +16.42%!!). FXI (Chinese ADRs) was flat.
SPX
SPX added +5.5 points to close at 1098.51, just under the 1100 level.
Nasdaq
Nasdaq gained +15.82 points to close at 2166.90. Its 10-day MA curved up. The MACD went higher.
Market’s actions have shown renewed strength. The Dow has already broken higher and keeps on making new 52-week highs. SPX and Nasdaq still need to break above their recent resistance levels: SPX 1100 and Nasdaq 2190. VIX came down to be 22 intraday, but, bounced to close just above 23. The support for VIX at 23 seems fairly solid and the market will need to see VIX below this level for more money to come in and stay in. Tomorrow could be the deciding day. The market has rallied far in the past week. But, today’s intraday pullback after going above SPX 1100 allowed the market to let off some steam and create some room in the technicals to allow the market to go higher. We’ll need to seem some strength back in energy stocks to push the market above SPX 1100.
Good night and HappyTrading! ™
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