Yesterday (Thursday), the market pushed above 1460, and looking to break higher. Then, "someone" published GOOG’s earnings early and torpedoed the market. Coincidence? Hmmm… Suspicious to say the least! Well, GOOG dropped immediately from a $760 open to below $690 before bouncing a little. By the end of the day, the tone on the market had changed. Momentum took care of GOOG today, falling as low as $672 before bouncing. AAPL continued to sink closing just below $610 (that’s from a recent high of $705)! Other high-flyers tumbled also, including PCLN (down $21.88) and CMG (down a whopping 15%)!
Techs led the decline, including biotechs! Gold/silver also fell, as fund managers scrambled to raise cash. Hopefully, most of our members already did on Wednesday and Thursday, as I made the call in the Trading Room:
October 18, 2012 7:30 AM
very volatile… keep lots of cash…
Well, we jumped on the downside trade today. After 30-minutes into the trading, we were looking for the market to head lower. We got some nice intraday trades on LULU and CF puts, both scoring over +60% profit in just a couple of hours. Of course, we cashed out on some nice trades on the longside as well earlier in the week, in addition to an earnings "downside" play on APOL for a +195% overnight profit. Here are the closed trades for the week:
For the market, today’s heavy selling basically erased the gains from earlier in the week. More earnings reports will come in next week, including some big bellwethers, which we’ll take a closer look at on Sunday in my weekly Market Forecast and Sector Watch.
Have a wonderful weekend, everyone!
Good night and HappyTrading! ™