The Dow Hits New 2009 High! SPX, Nasdaq, AXP, MA, V, COF, WYNN, LVS, WMS, MGM, PCLN, HMIN

Investors cheered the reassurance from the G-20 to keep economic stimulus measures in place.  The market opened strongly today and continued to go higher until the close.  Most sectors participated in the rally.  Gold recorded new record highs, trading above $1100/ounce.  Oil also went up, trading above $79/barrel.  We locked in some more profits today, including some December calls on GLD:

November 09, 2009
10:12 | HappyTrading GLD ($108.20) Sold to Close GCZLA Dec 105 calls, at $4.60 +67%
07:20 | HappyTrading CTRP ($63.35) Sold to Close QCTKL Nov 60 calls, at $5.00 +56%

Financials were strong today.  The credit card stocks soared to new 2009 highs.  In my Sector Watch this weekend, I specifically pointed out that "AXP looks like it has more room to go[, and] MA has momentum on its side."  AXP shares jumped almost +5% today and MA closed above $242.  COF hopped +5.6% while V added +1.87%.  Casino stocks also had a strong day.  In our Trading Room, we started talking about the casino stocks early:

billbigD November 9, 2009 6:13 AM
Wynn screaming-Wynn Resorts announces $4.00/share special dividend

HappyTrading November 9, 2009 7:34 AM
casino stocks
bouncing nicely: WYNN/LVS/WMS

LVS ended the day up +9.38%; WYNN rose +6.38%; WMS gained +5.41%, MGM vaulted +7.08%.

We also discussed earnings on PCLN and HMIN:
Allan B November 9, 2009 9:51 AM
PCLN earnings today….AH. ya think it will surprise like AMZN?

Bagger Vance November 9, 2009 9:53 AM
i’m long PCLN for a big pop, Allan…

Allan B November 9, 2009 9:57 AM
BV…really like pattern of PCLN. good luck. i’m taking a token position on it.

HappyTrading November 9, 2009 10:20 AM
PCLN
could go above $190 is earnings are good…

HappyTrading November 9, 2009 8:04 AM
HMIN
earnings after market today; looks strong.

HappyTrading November 9, 2009 12:50 PM
HMIN
lots of last minute Nov 35 call buying…

After the market, both PCLN and HMIN delivered solid earnings.  PCLN shares jumped +7.48% trading around $187/share this evening.  HMIN flew up over +9%, trading around $36/share.  Those PCLN and HMIN calls should do really well tomorrow.  The HMIN Nov 35 calls closed at $1.02 and should at least double.

The Dow ended up +203.52 points, closing at 10226.94 (a new 2009 high); SPX gained +23.78 points; Nasdaq jumped +41.62 points:

SOXX (semiconductors) led the techs with a +3.15% gain.  XLF (financials) bounced +3.56%.  Commodity sectors also particiated:  GDX (gold miners) +3.49% (discussed in Sector Watch); XME (metals and mining) +3.85%, OIH (oil services) +3.13%.  GLD (gold) and SLV (silver) both went higher.  FXI (Chinese ADRs) rose +3.51%.

SPX

SPX added +23.78 points to close at 1093.08.  It closed above its daily MAs.  The MACD went up.

Nasdaq

Nasdaq jumped +41.62 points to close at 2154.06.  Its daily MAs and MACD turned higher.

We discussed the nearest resistance levels (SPX 1080 and Nasdaq 2150) in the Market Forecast last night.  Both SPX and Nasdaq closed above their respective resistance levels.  VIX fell below 23 intraday, but, managed to close just above.  These are bullish signs.  It was good to see strength in both financials and semiconductors (discussed in Sector Watch).  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.  Oil services and agriculture stocks have been lagging, and, could see some renewed buying interest.

Good night and HappyTrading! ™