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Markets Take A Pause: SPX, Nasdaq, SODA, FFIV, NFLX, QCOM, RL

Stocks have been bouncing for about 2 weeks from the falloff that started at the end of July.  SPX is now back to 1986.5, just several points away from its new all-time high, which was set just a few days before the quick pullback in July.  The Dow is almost touching 17,000 again.  Nasdaq has risen above 4,500.  However, China’s latest manufacturing data showed some softness in August.  Overnight, Asian markets were under pressure, although Japan did end higher.

Nevertheless, buyers still found stocks to push higher.  SODA popped +4.79%.  FFIV broke out in a big way this week, reaching above $122/share.  NFLX looked to challenge its all-time high, closing above $472/share.  QCOM bounced strongly yesterday; it has now recovered about 50% from its steep drop after the recent earnings.  RL added another $2.33 (it has been a continuous run for more than 2 weeks), almost touching $170/share.

The Dow was up +59.54 points; SPX added +4.91 points; Nasdaq slipped 1.03 point:

Most sectors were flat.  FDN (internet) and XME (metals and mining) slid slightly.

SPX

SPX added +4.91 points to close at 1986.51.  Its daily MAs and MACD moved slightly up.

Nasdaq

Nasdaq was down 1.03 points to close at 4526.48.  Its daily MAs and MACD also went higher.

I think at best the markets need to traverse sideways and consolidate around here.  This bounce from the recent pullback has been very powerful.  Two weeks down, two weeks up, and now we’re back to visiting all-time highs.  We have to be a little more careful here.  Let’s see if the markets can hold the levels here while things consolidate.

Good night and HappyTrading! ™

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Weekly Wrap-Up + Market Forecast + Sector Watch: SPX, Nasdaq, GLD, XLE, XME, FAS, GS, JPM, WFC, V, MA, X, STLD, NUE, CLF, WLT, BTU

Stocks had a good week last week.  Buyers were still buying on dips.  Last weekend, in my Market Forecast, I wrote:

"For the new week, if stocks continue to bounce, the first resistance is at 1940.  If SPX breaks above 1940 and still shows strength, we may need to test 1960.  Financials will need to participate.  Energies seem to be catching bids.  Internets have been strong; we’ll see if they can help push the markets higher."

Indeed, things happened pretty much as described in the forecast.  On Monday, SPX tested 1940 in the morning.  It hit resistance and started falling back.  But, buyers came in again on Wednesday, and this time, SPX closed above 1940.  Then, on Friday morning, SPX popped higher to tested 1960.  Soon after, some news came out of Ukraine and it sparked a quick selloff.  SPX fell quickly back down to 1940.  But, buyers drove it up again.  SPX ended at 1955.

This week, we closed up some stragglers as August monthly options expired.  Our CTRP calls did pretty well.  GOOG calls got a nice +88% overnight return!  TLT September calls came back strongly.  WYNN puts gave us a nice quick scalp!

  • 09:03 | Ecstatic Plays WYNN ($199.00) Sold to Close 0822P200 Aug 200 put, at $3.50 +26%
  • 08:05 | HappyTrading TLT ($118.00) Sold to Close 09C116 Sep 116 calls, at $2.70 +47%
  • 06:55 | HappyTrading TLT ($117.05) Sold to Close 09C116 Sep 116 calls, at $2.10 +14%
  • 08:26 | HappyTrading JKS ($27.70) Sold to Close 09C27 Sep 27 calls, at $2.60 +24%
  • 06:45 | HappyTrading GRMN ($55.65) Sold to Close 08C65 Aug 65 calls, at $0.80 -59%
  • 06:34 | Ecstatic Plays YELP ($73.80) Sold to Close 08C72.5 Aug 73 calls, at $2.10 -66%
  • 06:33 | Ecstatic Plays GOOG ($577.20) Sold to Close 08C570 Aug 570 calls, at $7.70 +88%
  • 08:39 | HappyTrading PSX ($82.50) Sold to Close 08C82.5 Aug 83 calls, at $0.50 -58%
  • 08:17 | Ecstatic Plays GLD ($126.57) Sold to Close 08C127 Aug 127 calls, at $0.51 -81%
  • 07:30 | Ecstatic Plays CTRP ($68.48) Sold to Close 08C65 Aug 65 calls, at $4.10 +60%

(to subscribe to our trade alerts, please visit our Services Page or CLICK HERE to watch a step-by-step instructional video.  Don’t forget to check out the "Buy-one-get-one-FREE" deal!  If you are trying to sign up for a FREE Membership, but, cannot; this means that we have placed our membership on an "invitation only" basis.  Please email us at: help@myhappytrading.com and, we’ll send you an invitation.  Thank you!)

For the week, the Dow was up +108.98 points; SPX added +23.47 points; Nasdaq gained +94.03 points.  Gold traded slightly down, but kept above $1300/ounce.  Oil dropped again to close below $97/barrel.  Asian markets were mixed on Monday, with Shanghai in the lead.  Here’s where the US markets closed on Friday:

SPX

SPX slid 0.12 point to close at 1955.06.  It closed just below its 30-day MA.  MACD was slightly up.

Nasdaq

Nasdaq added +11.93 points to close at 4464.93.  Its 10-day MA and MACD moved higher.

SPX closed just below its 30-day MA, while Nasdaq was much stronger and still managed to close higher on Friday.  For the new week…

To read the rest of this article, please subscribe to HappyTrading "Premium Articles" by going to the page. If you are already a subscriber, please click here: Market Forecast 8/18/2014.

Stocks Continue to Bounce From Recent Drop: SPX, Nasdaq, CSCO, TSLA, CSIQ, AMGN, AAP, CHL, PSX, MPC, TSO, VLO, NFLX, FB, TWTR, Z, TRLA

Besides a stutter on Tuesday, the broader market has been strong this week.  SPX closed above 1955 today, even though CSCO was down 2.26% after announcing plans to cut 6,000 jobs!  Oil refiners were strong and have been climbing for more than a couple of weeks!  PSX was up +1.1%; VLO +2.82%; MPC +1.69%; TSO +0.41%.

TSLA has been really strong and has risen about $20 since its earnings report a week ago.  CSIQ stock jumped about +30% in the past 2 days after the company reported a strong quarter, easily beating the estimates.  AMGN vaulted +3.55% and was looking strong!  AAP popped more than +7% after delivering a +19% rise in quarterly profit.  CHL was on a second-day rise after reporting a revenue rise in its quarterly earnings.

The Dow was up +61.78 points; SPX added +8.46 points; Nasdaq gained +18.88 points:

BTK (biotech) was strong again, adding +1.26%.  OIH (oil services) fell 1.85%.  USO (oil) dropped 2.53%.

SPX

SPX added +8.64 points to close at 1955.18.  It closed above its 20-day MA.  The MACD went up.

Nasdaq

Nasdaq gained +18.88 points to close at 4453.  It closed above its daily MAs.  The MACD turned higher.

Stocks have bounced strongly since last Friday.  Nasdaq is already back above its daily MAs.  Internet stocks continue to lead.  NFLX is testing resistance again.  Both FB and TWTR could be ready for a new leg up!  I think the broader market may need to take a pause tomorrow, especially with it being an "expiration" Friday.  TSLA may need to see a pullback after the recent run.  Z/TRLA are starting to look interesting again.

Good night and HappyTrading! ™

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Weekly Wrap-Up + Market Forecast + Sector Watch: SPX, Nasdaq, FAS, FDN, XLE, TAN, JKS, CSIQ, FSLR, APA, APC, EOG, SLB, GOOG, AMZN, LNKD, NFLX, FB, GS, BLK, MA, V, PNC

It was quite a volatile week!  Last weekend, in my Market Forecast, I said:

"For the new week, still lots of earnings coming in, but, most heavyweights have reported.  The tone of the market is now much cautious.  We should see some consolidation early in the week.  Some buyers should be itching to jump in, while those that got surprised by Thursday’s steep fall and haven’t gotten out might want to get out.  SPX has resistance above 1940 and support at 1910-1900."

Things once again happened as discussed in my forecast.  On Monday, buyers came in and drove SPX to 1940.  But, on Tuesday, sellers pushed the market back down.  Wednesday, buyers tried again, but, were much more cautious.  On Thursday, stocks fell again and SPX went as low as 1904.78.  Even though fighting was still going on in Ukraine and Iraq, and things were still unstable in Gaza, buyers came in when the support was hit late Thursday.  Friday saw a bounce that helped SPX to close just above 1931.

We didn’t trade much this week, as I had already discussed in my post on Tuesday.  We did some quick short-term trading and closed up some positions:

  • 07:18 | Ecstatic Plays TLT ($116.25) Sold to Close 08C114 Aug 114 calls, at $2.35 +15%
  • 06:48 | HappyTrading WYNN ($195.30) Sold to Close 08C197.5 Aug 198 calls, at $4.80 +12%
  • 08:18 | HappyTrading SCTY ($75.70) Sold to Close 08C72.5 Aug 73 calls, at $6.60 +19%
  • 10:48 | Ecstatic Plays JAZZ ($146.00) Sold to Close 08C150 Aug 150 calls, at $2.60 +18%
  • 09:35 | HappyTrading WHR ($145.80) Sold to Close 08P145 Aug 145 put, at $1.85 -35%
  • 08:54 | Ecstatic Plays JAZZ ($149.30) Sold to Close 08C150 Aug 150 calls, at $3.70 +68%
  • 08:31 | Ecstatic Plays FDX ($145.65) Sold to Close 08P145 Aug 145 put, at $1.50 +1%
  • 07:53 | HappyTrading UNH ($81.50) Sold to Close 08P85 Aug 85 calls, at $4.09 +30%

(to subscribe to our trade alerts, please visit our Services Page or CLICK HERE to watch a step-by-step instructional video.  Don’t forget to check out the "Buy-one-get-one-FREE" deal!  If you are trying to sign up for a FREE Membership, but, cannot.  This means that we have placed our membership on an "invitation only" basis.  Please email us at: help@myhappytrading.com and, we’ll send you an invitation.  Thank you!)

For the week, the Dow was up +60.56 points; SPX added +6.44 points; Nasdaq  gained +18.26 points.  Gold bounced to about $1310/ounce.  Oil was flat, staying around $97/barrel.  On Monday, Asian markets were up solidly.  Let’s take a look at how the US markets closed on Friday:

SPX

On Friday, SPX added +22.02 points to close at 1931.59.  It closed below the daily MAs.  The MACD was flat.

Nasdaq

Nasdaq gained +35.93 points to close at 4370.9.  It also closed below its daily MAs.

Although stocks bounced on Friday, both SPX and Nasdaq still closed below their respective daily MAs.  For the new week…

To read the rest of this article, please subscribe to HappyTrading "Premium Articles" by going to the Premium Services (click here) page. If you are already a subscriber, please click here: Market Forecast 8/11/2014.

July 2014 Monthly Wrap: WFM, WHR, LNKD, FB, AMZN, CREE, SCTY

The month of July was mostly about earnings.  Tech earnings were especially strong.  Social network stocks did really well, mostly.  We had some nice trades this month with a few triple-digit winners:

  • 10:04 | Ecstatic Plays WFM ($39.10) Sold to Close 08C37.5 Aug 38 calls, at $2.05 +105%
  • 08:10 | HappyTrading FFIV ($113.00) Sold to Close 08C115 Aug 115 calls, at $1.59 -56%
  • 06:51 | HappyTrading UNH ($80.70) Sold to Close 08P85 Aug 85 put, at $4.25 +35%
  • 06:39 | HappyTrading WHR ($141.22) Sold to Close 08P145 Aug 145 put, at $4.95 +73%
  • 07:43 | HappyTrading FDO ($75.70) Sold to Close 08C75 Aug 75 calls, at $1.15 +7%
  • 07:37 | Ecstatic Plays VMW ($100.90) Sold to Close 08C95 Aug 4 calls, at $6.00 +50%
  • 06:51 | HappyTrading APC ($112.00) Sold to Close 08C110 Aug 110 calls, at $4.00 -11%
  • 09:29 | Ecstatic Plays VIX ($12.50) Sold to Close 0820C12 Aug 12 calls, at $1.55 +11%
  • 07:51 | Ecstatic Plays VIX ($12.35) Sold to Close 08C12 Aug 12 calls, at $1.55 +11%
  • 09:20 | Ecstatic Plays MPC ($78.60) Sold to Close 08C77.5 Aug 78 calls, at $2.65 +26%
  • 08:35 | Ecstatic Plays SPY ($197.60) Sold to Close 0725P197 Jul 197 put, at $0.10 -91%
  • 07:26 | Ecstatic Plays SCTY ($73.30) Sold to Close 0801C170 Aug 170 calls, at $4.75 +44%
  • 06:33 | Ecstatic Plays LNKD ($177.50) Sold to Close 0725C170 Jul 170 calls, at $7.55 +152%
  • 06:39 | Ecstatic Plays LNKD ($174.00) Sold to Close 0725C170 Jul 170 calls, at $4.55 +52%
  • 06:31 | HappyTrading FB ($76.00) Sold to Close 0725C70 Jul 70 calls, at $7.00 +160%
  • 07:30 | HappyTrading SINA ($49.40) Sold to Close 08C47.5 Aug 48 calls, at $3.50 +29%
  • 07:11 | HappyTrading FB ($70.20) Sold to Close 08C65 Aug 65 calls, at $6.55 +56%
  • 08:58 | Ecstatic Plays VMW ($96.75) Sold to Close 08C95 Aug 95 calls, at $6.00 +50%
  • 07:26 | Ecstatic Plays HLF ($57.00) Sold to Close 0725P52.5 Jul 53 put, at $1.50 -54%
  • 07:21 | HappyTrading FB ($69.20) Sold to Close 08C65 Aug 65 calls, at $5.80 +38%
  • 06:49 | HappyTrading SINA ($49.00) Sold to Close 08C47.5 Aug 48 calls, at $3.40 +25%
  • 06:32 | HappyTrading BIDU ($199.80) Sold to Close 0725P190 Jul 190 calls, at $12.00 +35%
  • 07:02 | HappyTrading BIDU ($196.50) Sold to Close 0725C190 Jul 190 calls, at $9.75 +10%
  • 07:34 | HappyTrading SWKS ($52.45) Sold to Close 08C48 Aug 48 calls, at $5.00 +67%
  • 06:48 | HappyTrading SWKS ($51.45) Sold to Close 08C48 Aug 48 calls, at $4.20 +40%
  • 06:36 | HappyTrading TLT ($114.85) Sold to Close 08C113 Aug 113 calls, at $2.28 +27%
  • 06:34 | Ecstatic Plays TSLA ($216.00) Sold to Close 07P220 Jul 220 put, at $4.20 +9%
  • 09:48 | Ecstatic Plays TSLA ($218.60) Sold to Close 07P220 Jul 220 put, at $4.05 +5%
  • 06:53 | Ecstatic Plays SCTY ($65.70) Sold to Close 07P66.5 Jul 67 put, at $1.67 -33%
  • 06:48 | Ecstatic Plays MA ($79.10) Sold to Close 08C75 Aug 75 calls, at $4.65 +55%
  • 06:45 | HappyTrading FAS ($103.80) Sold to Close 07C103 Jul 103 calls, at $1.80 -28%
  • 06:39 | Ecstatic Plays MA ($78.73) Sold to Close 08C75 Aug 75 calls, at $4.49 +50%
  • 06:33 | HappyTrading PNC ($88.20) Bought to Open 08C87.5 Aug 88 calls, at $2.15 EXPIRED
  • 07:53 | HappyTrading SNDK ($103.90) Sold to Close 07P105 Jul 105 put, at $4.00 -15%
  • 08:25 | Ecstatic Plays WFC ($51.85) Bought to Open 07C51.5 Jul 52 calls, at $0.90 EXPIRED
  • 06:48 | Ecstatic Plays FDO ($62.80) Sold to Close 07C65 Jul 65 calls, at $0.45 -67%
  • 06:45 | HappyTrading VIX ($13.00) Sold to Close 0716C10.5 Jul 11 calls, at $2.75 +104%
  • 08:43 | HappyTrading JKS ($27.50) Sold to Close 07C29 Jul 29 calls, at $0.80 -68%
  • 08:41 | HappyTrading LVS ($75.10) Sold to Close 07C77.5 Jul 78 calls, at $0.50 -71%
  • 07:50 | HappyTrading VIX ($12.35) Sold to Close 0716C10.5 Jul 11 calls, at $2.10 +56%
  • 07:11 | HappyTrading LNKD ($164.40) Sold to Close 07P170 Jul 170 put, at $7.50 +79%
  • 07:00 | HappyTrading LNKD ($164.60) Sold to Close 07P170 Jul 170 put, at $7.00 +67%
  • 06:50 | Ecstatic Plays SCTY ($66.90) Sold to Close 07P70 Jul 70 put, at $4.30 +72%
  • 08:39 | HappyTrading MON ($125.30) Sold to Close 07C125 Jul 125 calls, at $1.67 -46%
  • 08:30 | Ecstatic Plays SCTY ($68.30) Sold to Close 07P70 Jul 70 put, at $3.65 +46%
  • 08:05 | Ecstatic Plays GMCR ($125.10) Sold to Close 07C126 Jul 126 calls, at $2.16 -12%
  • 09:31 | HappyTrading CREE ($53.10) Sold to Close 07C50 Jul 50 calls, at $3.35 +46%
  • 06:35 | HappyTrading CREE ($52.50) Sold to Close 07C50 Jul 50 calls, at $3.10 +35%
  • 08:12 | HappyTrading SFLY ($49.90) Sold to Close 07C47.5 Jul 48 calls, at $3.10 +41%
  • 08:09 | HappyTrading SINA ($52.50) Sold to Close 07C50 Jul 50 calls, at $3.30 +10%
  • 07:28 | Ecstatic Plays GOOG ($583.50) Sold to Close 0703C580 Jul 580 calls, at $4.30 -19%
  • 06:34 | Ecstatic Plays AMZN ($335.70) Sold to Close 07C330 Jul 330 calls, at $10.50 +56%
  • 06:33 | Ecstatic Plays AMZN ($334.80) Sold to Close 07C330 Jul 330 calls, at $10.00 +49%
  • 07:00 | HappyTrading YELP ($78.10) Sold to Close 07C75 Jul 75 calls, at $5.10 +35%
  • 07:28 | Ecstatic Plays SPY ($195.33) Bought to Open 0703P196 Jul 196 put, at $1.24 EXPIRED

(to subscribe to our trade alerts, please visit our Services Page or CLICK HERE to watch a step-by-step instructional video.  Don’t forget to check out the "Buy-one-get-one-FREE" deal!)

The broader market seesawed back-and-forth throughout the month, but mostly kept above SPX 1960.  Nasdaq was bolstered up by internet and biotech stocks.  It was until last week that the selling pressure finally pushed the indices back.

This week, we haven’t traded much at all.  The market is very unstable right now.  On Monday, stocks bounced, but, yesterday, stocks dropped again!  It’s probably better to hold cash until things calm down a bit.  We’ll wait and see if buyers on the sideline are willing to buy again on this dip. 

Good night and HappyTrading! ™

Market Forecast + Sector Watch: SPX, Nasdaq, FDN, GLD, BTK, FXI, BIDU, PTR, CHL, LFC, GOOG, NFLX, YELP, CELG, BIIB, ILMN, GILD, PCLN, CRM, PCYC, REGN, YHOO, EXPE

Markets took a steep fall last week.  In my Market Forecast last week, I wrote:

"For the new week, more earnings are still coming in…  Although SPX made a new all-time high last week, it closed below 1980.  It’s resistance now is between 1985 and 1990.  SPX still has good support between 1960 and 1950.  I think we’ll see more consolidation this week.  Earnings season is still busy, so, things could be volatile."

Thursday’s selloff was surprisingly heavy, taking SPX down 40 points!  With one quick drop, SPX was down to 1930!  For the week, the Dow was down 467.2 points; SPX fell 53.19 points; Nasdaq lost 96.92 points.  Gold fell slightly to close at around $1295/ounce, while oil ended at $98/barrel.  On Monday, Asian markets were mixed, with China rallying again, up +1.74%.  Let’s see where the US markets stood after Friday’s close:

SPX

SPX fell 5.52 points to close at 1925.15.  It closed below its daily lower BB.

Nasdaq

Nasdaq fell 17.13 points to close at 4352.64.  It closed at its daily lower BB.  The MACD went down.

As I mentioned in this week’s wrap-up, Nasdaq is still holding a bullish formation in its daily MAs.  SPX is a bit weaker.  For the new week…

To read the rest of this article, please subscribe to HappyTrading "Premium Articles" by going to the Premium Services (click here) page. If you are already a subscriber, please click here: Market Forecast 8/3/2014.

Markets Tumble As Argentina Defaults: SPX, Nasdaq, DJI, YELP, GOOG, PCLN, LNKD, FB, WLP, HUM, UNH, GS, JPM, WFC

US market took a sharp drop yesterday, as Argentina defaults on its $1.3 billion of debt.  Jobless claims were more than expected, which didn’t help.  Stocks gapped down and kept sinking lower!

High-flying internet stocks pulled back with the broader market:  PCLN -1.07%; GOOG -2.69%; YELP -11.16%; FB -2.71%.  Healthcare stocks were weak again:  WLP -2.37%; HUM -2.24%; UNH -2.29%.  Financials were among the weakest:  JPM -2.1%; GS -1.64%; WFC -2.3%.

After the market, LNKD reported earnings that topped analysts’ estimates.  Its shares popped initially to $208 from Thursday close of $180.64.  The shares settled at $194.2 in the evening trading.

On Wednesday, I saw that the broader market was showing some weakness and cashed out some trades on the longside and initiated trades on the downside.  We were able to capture some nice wins:

  • 10:04 | Ecstatic Plays WFM ($39.10) Sold to Close 08C37.5 Aug 38 calls, at $2.05 +105%
  • 08:10 | HappyTrading FFIV ($113.00) Sold to Close 08C115 Aug 115 calls, at $1.59 -56%
  • 06:51 | HappyTrading UNH ($80.70) Sold to Close 08P85 Aug 85 put, at $4.25 +35%
  • 06:39 | HappyTrading WHR ($141.22) Sold to Close 08P145 Aug 145 put, at $4.95 +73%
  • 07:43 | HappyTrading FDO ($75.70) Sold to Close 08C75 Aug 75 calls, at $1.15 +7%
  • 07:37 | Ecstatic Plays VMW ($100.90) Sold to Close 08C95 Aug 4 calls, at $6.00 +50%
  • 06:51 | HappyTrading APC ($112.00) Sold to Close 08C110 Aug 110 calls, at $4.00 -11%

VMW calls gave up a +50% profit.  WHR puts yielded an overnight +73% gain!  UNH puts did pretty well adding a +35% win overnight.  WFM dropped sharply after its earnings.  But, buyers came in after the market open.  Even in a weak market, the buying was supported by the technicals.  So, we jumped in on WFM calls, which resulted in a "daily double" in just a couple of hours, good for a +105% profit!

(to subscribe to our trade alerts, please visit our Services Page or CLICK HERE to watch a step-by-step instructional video.  Don’t forget to check out the "Buy-one-get-one-FREE" deal!)

The Dow was down 317.06 points; SPX tumbled 39.4 points; Nasdaq lost 39.13 points:

Most sectors were down around 2%!  XLF (financial) lost 2.05%.  FDN (internet) fell 2.22%.  BTK (biotech) dropped 2.41%.

SPX

SPX tumbled 39.4 points to close at 1930.67.  Its MACD dropped sharply.

Nasdaq

Nasdaq fell 93.13 points to close at 4369.77.

I’ve been saying for a couple of weeks now that I think the markets need to consolidate a bit.  Stocks were already weak on Wednesday, although some buyers came in after Fed’s rate announcements.  The Dow was actually giving clues early:

DJI

As you can see here, the Dow had dropped down to its 30-day MA on 7/25, and had not been able to rise higher.  The 10-day MA was sloping downwards.  On Wednesday, SPX and Nasdaq managed to close in the green, but, the Dow was again in the red.  It was already pushing on its daily lower Bollinger Band.  This is why I was increasingly cautious and picked up puts on Wednesday. 

With the market major indices falling 2% in one day, I’d expected some buyers to come in on Friday.  But, this drop changes the tone of the broader market.  Buyers should be more cautious now.  We also have the latest unemployment rate due out on Friday morning.  Let’s see how the market reacts.

Good morning and HappyTrading! ™

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Social Networking Stocks Go Higher: SPX, Nasdaq, TWTR, YELP, LNKD, NFLX, HUM, UNH, WLP, X, SINA, SOHU, RHT, VMW

Stocks opened higher on Wednesday on solid GDP data.  But, profit-taking drove the market into negative territory.  However, after the Fed reaffirmed its intention to keep the rates low, buyers came back in again!

Social networking stocks were strong today, after TWTR delivered strong earnings.  TWTR popped +20% and it looks like it’ll go higher in the coming days.  Its nearest resistance is at around $50.  YELP and LNKD also traded up, adding +8.81% and +4.2%, respectively.  After the market, YELP reported a 4-cent-per-share profit for Q2, versus the concensus of a 3 cents loss!  This is YELP’s first profittable quarter after its IPO.  In after-hours trading, YELP initially jumped to $82, but, ended the evening session slightly lower.  I think this is just traders’ knee-jerk reaction (and/or manipulation).  YELP’s quarterly report is stellar, including a strong guidance!  YELP should go back to test $100 before the end of the year. 

NFLX managed to bounce +2.38%.  X also vaulted nearly +20% after the company said the market has “bounced back quite well,” especially demand for flat-rolled steel.  On the downside, HUM dropped 5.63% after releasing earnings with rising costs.  UNH traded down 1.57%.  WLP was also down more than 3% in the morning, but, managed to close flat.

The Dow was down 31.75 points; SPX added +0.12 point; Nasdaq gained +20.2 points:

SOXX (semiconductor) bounced +1.01%.  BTK (biotech) moved higher again.  FDN (internet) added +1.52%.

SPX

SPX added +0.12 point to close at 1970.07.  It closed right at its 30-day MA.  The MACD went down.

Nasdaq

Nasdaq gained +20.2 points to close at 4462.9.  Its daily MAs were slightly up.

The market was mixed today.  Although SPX closed flat, it is starting to show weakness.  The Dow closed lower.  However, techs were still strong.  Besides, internet stocks, software was quite strong as well.  Both RHT and VMW broke out higher!  In my Market Forecast this weekend, I thought we’d see more consolidation.  Chinese stocks continued to be strong.  Shanghai’s stock index (SSEC) ramped up higher on Thursday again!  SINA and SOHU have been making a base for a long time now.  I think these two are ready to make a move up!

Good night and HappyTrading! ™

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Weekly Wrap-Up + Market Forecast + Sector Watch: SPX, Nasdaq, FAS, FXI, IGV, FDN, TWTR, AMZN, YELP, ADBE, RHT, VMW, ACH, SOHU, CYOU, SINA, WYNN, BIDU, MA, GS, WFC, JPM, V

There were lots of big movers last week.  In addition to earnings, there were many "news" stocks, such as PBYI, HLF, Z, TRLA,… etc.  Last weekend, in my Market Forecast, I said,

"For the new week, it will be a very busy week for earnings…  NFLX is expected to do well.  So is AAPL.  If AAPL doesn’t come down, I can’t see the market coming down.  So, I think we can see more consolidation.  Again, if SPX breaks that 1985, it can set up for a new leg up."

Things pretty much went as how I said it would in the forecast.  On Tuesday, SPX went above 1985.  On Thursday, SPX set a new all-time high at 1991.39!  But, on Friday, markets took a breather, leaving the SPX essentially unchanged for the week.

We had a really nice week with a couple of triple-digit gainers, LNKD calls +152% and FB calls +160%.  We trade FB really well by holding Aug calls for a couple of weeks ahead of earnings.  We cashed the Aug calls out the day before the earnings and used the profit to buy July weekly calls, which reduced our risk down to "0".  We hit an overnight profit of +160%.  Here are the closed trades for the week:

  • 07:26 | Ecstatic Plays SCTY ($73.30) Sold to Close 0801C170 Aug 170 calls, at $4.75 +44%
  • 06:33 | Ecstatic Plays LNKD ($177.50) Sold to Close 0725C170 Jul 170 calls, at $7.55 +152%
  • 06:39 | Ecstatic Plays LNKD ($174.00) Sold to Close 0725C170 Jul 170 calls, at $4.55 +52%
  • 06:31 | HappyTrading FB ($76.00) Sold to Close 0725C70 Jul 70 calls, at $7.00 +160%
  • 07:30 | HappyTrading SINA ($49.40) Sold to Close 08C47.5 Aug 48 calls, at $3.50 +29%
  • 07:11 | HappyTrading FB ($70.20) Sold to Close 08C65 Aug 65 calls, at $6.55 +56%
  • 08:58 | Ecstatic Plays VMW ($96.75) Sold to Close 08C95 Aug 95 calls, at $6.00 +50%
  • 07:26 | Ecstatic Plays HLF ($57.00) Sold to Close 0725P52.5 Jul 53 put, at $1.50 -54%
  • 07:21 | HappyTrading FB ($69.20) Sold to Close 08C65 Aug 65 calls, at $5.80 +38%
  • 06:49 | HappyTrading SINA ($49.00) Sold to Close 08C47.5 Aug 48 calls, at $3.40 +25%
  • 06:32 | HappyTrading BIDU ($199.80) Sold to Close 0725P190 Jul 190 calls, at $12.00 +35%
  • 07:02 | HappyTrading BIDU ($196.50) Sold to Close 0725C190 Jul 190 calls, at $9.75 +10%
(to subscribe to our trade alerts, please visit our Services Page or CLICK HERE to watch a step-by-step instructional video.  Don’t forget to check out the "Buy-one-get-one-FREE" deal!)

For the week, the Dow was down 140.24 points; SPX was up +0.12 point; Nasdaq gained +17.41 points.  Gold finished slightly down, but, managed to stay above $1300/ounce.  Oil was essentially unchanged.  Asian markets were mostly higher on Monday, led by China with a +2.41% pop!  Here’s where the US markets stood after Friday’s close:

SPX

On Friday, SPX dropped 9.64 points to close at 1978.34.  It closed just above its daily MAs.  The MACD fell.

Nasdaq

Nasdaq slipped 22.54 points to close at 4449.56.  Its daily MAs were little changed.

Both SPX and Nasdaq closed above their respective daily MAs.  For the new week…

To read the rest of this article, please subscribe to HappyTrading "Premium Articles" by going to the Premium Services (click here) page. If you are already a subscriber, please click here: Market Forecast 7/27/2014.

Can Nasdaq Push Higher? SPX, Nasdaq, FB, AMZN, BIDU, V, DECK, SBUX, MLNX, GLD, Z, TRLA

SPX made another new all-time high yesterday, breaking above 1991!  FB made a new all-time high as well.  We locked in a nice overnight gain of +160%!  We cashed out on FB August calls and used the profit to buy cheaper weekly calls, which brought our risk down to "0"!  LNKD calls also did well yesterday!

  • 06:39 | Ecstatic Plays LNKD ($174.00) Sold to Close 0725C170 Jul 170 calls, at $4.55 +52%
  • 06:31 | HappyTrading FB ($76.00) Sold to Close 0725C70 Jul 70 calls, at $7.00 +160%

(to subscribe to our trade alerts, please visit our Services Page or CLICK HERE to watch a step-by-step instructional video.  Don’t forget to check out the "Buy-one-get-one-FREE" deal!)

The major market indices were little changed:

HGX (housing) tumbled 2.73%.  BTK (biotech) pulled back 1.53%.  SOXX (semiconductor) fell 1.53%.  FDN (internet) and IGV (software) gained about +1%.  GLD (gold) fell 1.01%.

Nasdaq

It looks like Nasdaq is testing the recent high.  4500 could be a tough resistance for Nasdaq to break.  Last night’s earnings were mixed.

AMZN is down more than 10% after reporting a quarterly loss!  AMZN share price targets were lowered by many analysts!  V traded lower after giving a lower-than-expected revenue forecast.  DECK shares traded higher by more than $5 reporting a solid quarter and raising its guidance!  SBUX trade about 2% lower even after beating its earnings estimates; its guidance was a bit soft.  MLNX traded up by +6.44% after delivering earnings that were inline with the estimates.  Z and TRLA both jumped higher on rumors that Z is in advanced talks to buy TRLA for $2 billion!  Z vaulted +15% and TRLA popped +32%!

The market indices may need to take a pause, but, it seems like there are lots news stocks to make this a busy Friday!

Good morning and HappyTrading! ™

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