After last week’s "flat" performance and Asian markets’ sharp decline on Sunday evening, US stocks started Monday on a down note. But, buyers came in right away. At the end of the day yesterday, buyers seemed to be rushing back in, pushing SPX to above 1525 for the close. With about 90 minutes left in the trading, it became more and more apparent that big buyers were jumping back in. So, we did as well.
Today, markets took off and kept most of the gains into the close. We locked in our profits by noon, including a +117% overnight gain on FAS calls and an intraday win of +47% on AAPL calls. Here are some of the trades we closed on Monday and Tuesday:
- 08:50 | Ecstatic Plays AAPL ($434.00) Sold to Close 03C440 Mar 440 calls, at $7.00 +47%
- 08:46 | HappyTrading AMZN ($275.20) Sold to Close 03C270 Mar 270 calls, at $8.05 +44%
- 08:42 | Ecstatic Plays FAS ($157.20) Sold to Close 0308C150 Mar 150 calls, at $7.60 +117%
- 12:51 | HappyTrading AMZN ($273.25) Sold to Close 03C270 Mar 270 calls, at $6.80 +21%
- 09:08 | HappyTrading HES ($69.20) Sold to Close 03C65 Mar 65 calls, at $4.50 +57%
- 08:10 | HappyTrading HES ($68.95) Sold to Close 03C65 Mar 65 calls, at $4.40 +53%
The Dow set a new all-time high at 14.286.37 and recorded a new "closing" all-time high at 14,253.77. SPX added +14.59 points; Nasdaq gained +42.1 points:
SOXX (semiconductors) popped nearly +2%. HGX (housing) gained +2.07%. XLE (energy) and OIH (oil services) bounced. XME (metals and mining), however, was still weak.
SPX added +14.59 points to close at 1539.79. Its daily MAs and MACD went higher.
Nasdaq gained +42.1 points to close at 3224.13. Its daily MAs and MACD also went up.
Both SPX and Nasdaq have pushed up to their respective daily upper BBs. SPX is about 36 points away from its all-time high (1576.09), which is actually not that close (but, not so far either), considering the broader market just spent a whole month consolidating. 36 points on SPX can give a lot of stocks quite a bit of room to run higher still!
In my Sector Watch this weekend, we talked about the high-flying leaders such as GOOG, LNKD, AMZN, and PCLN. All 4 of these flew higher yesterday. GOOG made another new all-time high today at just above $840! LNKD also recorded a new all-time high at $179.35, although it ended the day down 1.07%. LNKD has run from $125 to $180 after its recent earnings report a little more than 3 weeks ago! PCLN added $22 in just 2 days! AMZN, in spite of its critics of its high valuation, is trading right back up above $275 and could be eyeing its all-time high near $285. Technically speaking, GOOG and LNKD look a bit near-term overbought here.
Energy stocks found some buyers today. APC climbed +2.97%; EOG added +2.39%; IOC vaulted +7.92%.
CREE enjoyed a +14.4% pop today after increasing its forecast. Since its late January pop from $34 after its earnings report, CREE has not stopped climbed. It ended today at $51.16! This could make bring some attention to VECO!
SOHU and CYOU jumped just before the close after rumors said that SOHU could go private. Both SOHU and CYOU jumped almost +12% on the news. SOHU has resistance at $50.
Today’s rally was significant, not only because the Dow recorded a new all-time high. After a whole month of consolidation, SPX finally broke above the dreaded range of 1500 to 1530. While tomorrow may be a day of respite, I think stocks are heading higher. This is only the first day of breakout after a whole month of consolidation. Let’s be patient and not chase things right away, as we locked in overnight and intraday profits today. But, more opportunities should come very soon.
Good night and HappyTrading! ™
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