On Monday, the market gapped up at open on the news of aid for Spain. But, the market immediately started to take profits, and so did we. We jumped in on longside plays on Friday afternoon. Profits included a +123% gain on AAPL and +77% win on CME:
By the end of the day on Monday, the Dow was down 150 points! So, we hopped onto trades on the downside. There wasn’t much follow-through on the selling this morning. So, we closed them out with minor wins and losses. Buyers came in on Tuesday and drove stocks back up.
The Dow was up +162.57 points; SPX added +15.25 points; Nasdaq gained +33.34 points:
USO (oil) bounced +2.33% and OIH (oil services) added +1.82%. XME (metals and mining) gained +1.72%. XLF (financials) climbed +1.48%. MOO (agriculture) went up +1.71%.
SPX added +15.25 points to close at 1324.18. It closed above its 20-day MA. The MACD continued higher.
Nasdaq gained +33.34 points to close at 2843.07, also above its 20-day MA. Its MACD went up.
Both SPX and Nasdaq closed above their respective 20-day MAs. We’re basically back to the levels at Friday’s close. Is the market having a delayed reaction to $125B aid for Spain. We took it easy today and stayed in mostly cash. Let’s see how the market goes tomorrow. It does seem like the market wants to test SPX 1340 soon. Agriculture stocks were strong today, with AGU leading the way, adding +4.85%. CF was up +1.39%. POT gained +2.82%, and MOS hopped +2.57%. AGU has turned bullish. I think the rest will soon follow. We’ll be keeping an eye on these.
Good night and HappyTrading! ™