The market was strong today with commodity-related sectors joining the rally. USO (oil) jumped +4.17%, while UNG (natural gas) went up +2.02% Crude traded up more than $4 as a surprise drop in the U.S. oil supply was reported. XLE (energy) led the rally today, flying up almost +6%! Here are some of the leaders in the energy sectors: HES +13.5%; CLR +9.05%; CHK +7.99%; HK +7.82%. Oil services were very strong also, with OIH adding +5.82%. Yesterday, NOV reported great earnings and received an upgrade this morning. NOV shares traded up +10.43%! RIG gained +6.54%.
After the market, FSLR reported better-than-expected earnings and raised its guidance. Its shares jumped almost $20, or +6.84% in AH trading. V also beat the estimates with its quarterly profit. V shares trade higher by +2.49% after the report.
The agriculture sector bounced also, with CF leading the pack. CF rallied up almost $14, or +9.12%. MOS charged up +8.28%; and, POT garnered +5.12%.
The Dow went up +186.13 points; SPX added +21.06 points; Nasdaq gained +10.10 points:
VIX closed at 21.21, below 22. INX2 (Internet) and BTK (biotechs) were weak today, closing in the red. SOX (semiconductors) added +0.82%. As just mentioned, commodity sectors were very strong today. XME (metals and mining) advanced +4.8%. GLD (gold) slid 1.18%. MOO (agriculture) rose +3.8%. FXI (Chinese ADRs) was higher by +2.39%.
SPX
SPX gained +21.06 points to close at 1284.26. It closed above the 1280 level and above its daily MAs. The MACD went up.
Nasdaq
Nasdaq added +10.10 points to close at 2329.72. It touched its daily upper BB today. Its MACD continued higher.
This weekend, in my Market Forecast, I said, “SPX is lagging a bit. This tells me that if SPX were to follow through with similar developments, we could see a broader market rally in the new week.” Indeed, the broader market is waking up! SPX is now also above its daily MAs with its 10-day MA above the 20-day MA. The energy sector did a big jump today and may need to let off some steam. Techs were not as strong today but with the solar sector charging higher, we may see Nasdaq test 2350 soon. Agriculture plays are coming back in favor again. SPX closed above 1280; we’ll see if it can continue up to 1300. VIX closed under 22; this is very good for the market. Below 21, VIX could go to 19 before finding solid support.
Good night and HappyTrading! ™
