After last Wednesday and Thursday’s sharp fall, stocks traded sideways for a few days. But, today, right from the open, the market started to fall. Early on, techs were stronger, propped up by CSCO’s better-than-expected earnings last night; CSCO finished up by +4.81% today. Even ANF’s blowout earnings this morning failed to inspire buying in the retails; ANF shares soared +34.45% today!
GOOG and AAPL continued to be weak, both ended down more than $6. Financials were very weak: GS -1.91%; PNC -2.31%; C -3.15%. Even MA and V, which had held up quite well through October, traded lower. Mining stocks led the sectors lower: GOLD -6.69%; SLW -6.69%.
On the positive side (there were many), FB shot up +12.59%.
We did some quick intraday trades today. We caught the fast move by FB in the morning for an intraday +82% gain:
- 06:55 | HappyTrading FB ($21.90) Sold to Close 11C20 Nov 20 calls, at $2.00 +82%
- 06:47 | Ecstatic Plays FB ($547.00) Sold to Close 21.4 Nov 20 calls, at $1.50 +36%
- 06:36 | Ecstatic Plays FB ($21.00) Bought to Open 11C20 Nov 20 calls, at $1.10
We did some safer trades with December puts on the down side:
- 12:57 | HappyTrading CAT ($80.90) Sold to Close 82.5 Dec 83 put, at $3.70 +28%
- 12:31 | HappyTrading LVS ($41.00) Sold to Close 12P43 Dec 43 put, at $3.10 +46%
- 12:29 | HappyTrading CAT ($81.30) Sold to Close 12P82.5 Dec 83 calls, at $3.45 +20%
The Dow was down 185.23 points; SPX fell 19.04 points; Nasdaq dropped 37.09 points:
XME (metals and mining) was down 2.85%. GDX (gold miners) was down a whopping 4.56%. XLF (financials) lost 1.78%. SOXX (semiconductors) fell 1.51%.
SPX fell 19.04 points to close at 1355.49, below 1360. The daily MAs and MACD curved down.
Nasdaq dropped 37.08 points to close at 2846.81, below 2850. Its daily MAs and MACD glided lower.
Both SPX and Nasdaq suffered another leg lower, down to just below their next respective support levels (SPX 1360 and Nasdaq 2850). VIX went up, but, closed below 18. We should see some bounces tomorrow. But, both indices are now deep in their bearish formation. The market could be mixed, unless there’s positive news regarding solving the fiscal cliff and/or something big from Europe. Today’s fall was sharp, taking the indices from one support to the next in just one day. So, the previous support levels should now become resistance, ie SPX 1380 and Nasdaq 2900.
Good night and HappyTrading! ™