We have been talking about SPX testing 1420 all last week. Well, it happened today. The market pushed higher in the morning, with AAPL hitting almost $675, a new all-time high! But, right after SPX went above 1420, as high as 1426.68, profit-taking started to happen. AAPL quickly turned lower, ending the day down more than $9; at its low of the day, it was a $25 swing from the morning high!
We locked in more profits on the long side and picked up nice trades on the downside, including an overnight +112% downside trade on BIDU. In my Sector Watch for this week, I talked about GLD’s potential breakout, and, it happened today. We already locked in an +42% overnight profit.
BIDU was especially weak today, as QIHU started its own search engine. QIHU has been very strong lately, going from under $15 to over $22 in just a couple of weeks. After the market, WSM announced a strong quarter and raised its full-year forecast, sending its shares up more than +9%.
The Dow was down 68.06 points; SPX slid 4.96 points; Nasdaq fell 8.95 points:
GDX (gold miners) went up +1.67%. Both SLV (silver) and GLD (gold) went higher as well. XME (metals and mining) added +1.2%.
SPX slid 4.96 points to close at 1413.17. Its daily MAs glided up, while the MACD was flat.
Nasdaq fell 8.95 points to close at 3067.26. Its daily MAs were up and the MACD flattened.
The market was not able to close above SPX 1420 today, and VIX bounced a bit, back to 15. Financials were strong this morning and helped to drive SPX above 1420. As I had mentioned before, we’ll need to see strength in the financials for this market to break out. AAPL has been on an strong run, going up $100 from the earnings drop in July. Now that AAPL has made a new all-time high and quickly turned back down, we might see a little more selling in the next couple of more days. But, both gold and silver are looking very interesting. We could see shaper rises in both GLD and SLV from here.
Good night and HappyTrading! ™