The market started out weak, but, finished strong. Yesterday, in my evening post, I said, “Tomorrow, we may see the market wobble a bit after today’s big gains. If the market can hold these levels with modest gains, it would be a good accomplishment tomorrow.” The market did exactly that, with Nasdaq outperforming my expectations, adding almost +30 points!
RIMM was especially strong today and moved swiftly. It traded almost to $129 and finished at $127.3, up +4.36%. BIDU, which didn’t really move with the market yesterday, gained +2.58%. I think BIDU could be gearing up for a even bigger move. GOOG also performed well today, adding another $6.49 to yesterday’s $16 gain.
Chinese stocks are catching buyers’ attention. CMED went from $45 to $53 in 2 days! EDU jumped over +8% and closed above its daily MAs. EDU could be looking for a breakout here. After the market, SINA reported earnings that beat the estimates gave a solid forecast for next quarter. SINA shares were higher by +1.27% in AH trading.
The Dow was up +40.30 points; SPX added +4.31 points; Nasdaq gained +28.54 points:
Most sectors were green today. VIX went below 20 intraday and closed at 20.23. BTK (biotech), INX2 (Internet), SOX (semiconductors), and SWH (software) all recorded solid gains. Commodity-related sectors bounced: XME (metals and mining) +2.87%; OIH (oil services) +2.17%; MOO (agriculture) +2.15%. FXI (Chinese ADRs) added just +0.49%.
SPX
SPX added +4.31 points to close at 1289.19. Its daily upper BB is coinciding with the 1300 level, and they are within reach. The MACD went higher.
Nasdaq
Nasdaq gained +28.54 points to close at 2378.37. It jumped above the 2350 level. Its MACD glided up.
The market is now showing strength. Even though the financials were on the weak side today, the market made modest gains. VIX has fallen to 20 and it’s very good for the market. Tomorrow is Thursday and some people may start to think about locking in profits. So, be a little more careful; unless the financials decide to have their “follow-through” a day later. Then, we may be looking at another flat, perhaps with modest gains, again. Commodity-related sectors bounced a bit today; but, if the market gets weak, they may be vulnerable again. The Hang Seng was closed yesterday. It’ll be interesting to see how they react tonight. They might have some catching up to do.
Good night and HappyTrading! ™
