This morning, the CPI data came out. It was higher than expected! The market opened lower, but, quickly turned around and went into the positive territory. Dollar went higher and oil dropped again. Commodity-related sectors gave back some gains from yesterday. Gold took a tumble and closed at a new year low. It is trading below $800/ounce overnight. Techs went higher and some Chinese ADRs saw buyers coming back in.
CEO has been strong these past 2 days. It had fallen from above $200 to $130 in 3 months, and jumped back to close above $140. BIDU has been quite weak recently, which traded above $350 after a stellar earnings report. It bounced from nearly $300 to today’s close at $324.86, up +2.94%. SNDA traded up almost +4% today to close at $26.16, which I find interesting as it held the support at $25. TSL is reporting next Monday on 8/18 added +3.93% today. CTRP saw its shares jump over +23% as it beat the estimates on its earnings. CTRP could go to $60 before seeing a resistance.
The financials fare a little better today: FNM +7.72%; FRE +7.03%; WM +5.83%; BAC +4.57%. V added +2.5% today and looks like it could go higher. V has not really moved after a great quarterly report. Biotechs were strong again. ILMN garnered more than +3%. GENZ recorded a new all-time high at $83.31, gaining +3.47% for the day. We closed our trades on GENZ:
10:15 | HappyTrading GENZ ($82.95) Sold to Close GAAHP Aug 80 calls, at $3.00 +13%
10:30 | HappyTrading GENZ ($82.76) Sold to Close GAAIP Sep 80 calls, at $4.6 +64%
The August calls ended at $3.2 and the Sept calls traded up to $4.9. Pretty good gains though. Looks like GENZ could get another spike tomorrow morning before taking a breather.
The Dow was up +82.97 points; SPX added
+7.1 points; Nasdaq jumped +25.05 points:
VIX
fell below 21. Techs led the market higher: SOX
(semiconductors) +1.07%; INX2 (Internet) +1.05%;
BTK (biotechs) +1.83%. UNG (natural gas) fell
4.36% and USO (oil) dropped 1.08%. GLD lost
2.71% and GDX (gold miners) tumbled 4.47%.
XLE (energy) slipped 1.84%. XLF (financials)
hopped +3.11% while HGX (housing) gained +3.72%.
FXI (Chinese ADRs) was flat.
SPX
SPX
added +7.1 points to close at 1292.93. It tested the 1300 level
today. Its dialy MAs and MACD went up.
Nasdaq
Nasdaq
jumped +25.05 points to close at 2453.67, above the 2450 level. Its daily MAs
and MACD went higher.
The market really showed some strength today. The CPI data turned out to be
a "non-factor". As the dollar continued to rise, oil dropped again, and, the
market rallied on! Yesterday,
I said, "The market actions were quite encouraging today. While the
commodities bounced, the overall market was able to held flat. The financials
were still on the weak side. The techs also kept their levels up...
if [VIX] goes below 21 again, it will likely start a new leg
down." VIX went below 21 today to close at 20.34. It
looks like it could test 19 soon; this is good for the market. The techs are
strong right now. Money is still flowing out of the commodities, although the
agriculture plays held up pretty well today. It does look like
USO (oil) and UNG (natural gas) could get
another leg down soon. The basic commodities may need to see another big drop
before finding the bottom.
