In my Market Forecast this weekend, I highlighted the recent bulliness of the biotech sector. During the past two days, biotechs have led the market higher. MDVN went up +10.9% in the past two days; VRTX added +7%; CELG gained +4.5%. GILD popped +356% today (check out the run on GILD since 12/19/2011)!
Financials jumped today, and, we were there to captured some quick profits, including a +106% on FAS weekly calls, which we picked up just yesterday:
- January 10, 2012
- 10:27 | Ecstatic Plays FAS ($73.50) Sold to Close 0113C70 Jan 70 calls, at $4.10 +88%
- 10:13 | HappyTrading GS ($98.65) Sold to Close 01C95 Jan 95 calls, at $5.05 +84%
- 07:08 | Ecstatic Plays FAS ($74.00) Sold to Close 0113C70 Jan 70 calls, at $4.50 +106%
This morning, LULU boosted its guidance, sending its share up +12%. On the other hand, TIF dropped 10% as it reported weakened sales growth during the holidays.
Energy stocks were strong as well, which we also looked at in this weekend’s Sector Watch. FSLR jumped +5.24% (this should test $40 soon). NOV climbed +3.27%. EOG, which received an upgrade this morning, went up +3.28%.
The much-beaten Chinese internet stocks bounced today: BIDU +5.63%; SINA +12.8%; SOHU +7.57%.
The Dow was up +69.78 points; SPX added +11.38 points;
gained +25.94 points:
XME (metals and mining) added +2.75%. OIH (oil services) rose +2.44%. BTK (biotech) popped +2.37%. XLF (financials) gained +1.82%.
SPX added +11.38 points to close at 1292.08. The daily MAs and MACD went higher.
Nasdaq gained +25.94 points to close at 2702.5. The daily MAs and MACD also went up.
Nice rally today. Both SPX and Nasdaq broke above their respective resistance levels: SPX 1280 and Nasdaq 2680. VIX slid again, but, not by much; and, it stayed above 20. Things are pretty much marching along what we discussed this weekend in my Market Forecast. Agriculture stocks also went higher today after taking a break late last week. CF, AGU, MON, MOS, POT all look pretty good. Both MON and MOS beat their respective earnings estimates.
This morning, in the Trading Room, I cautioned members to wait a bit before getting into new positions:
January 10, 2012 6:56 AM
after a strong gap up, don’t be too eager to add new positions in the first hour of trading, unless you got in right at open…
We saw this behavior last week as well. Remember last Tuesday, when the market jumped right at open and then pretty much held constant for the rest of the week? So, instead, we locked in profits today. The good thing was the risk that we took yesterday before the close, which allowed us to catch the big move today. Now, we’ll have to see if the market can push higher tomorrow.
Good night and HappyTrading! ™