HappyTrading
Posted July 10, 2008 at 11:48 am | Permalink (Edit)
GLD
breaking out!!

optiondragon
Posted July 10, 2008 at 11:48 am | Permalink (Edit)
OPEC chief warns of ‘unlimited’ oil prices if Iran is attacked-Herald Tribune
The International Herald Tribune reports the head of the Organization of Petroleum Exporting Countries warned that oil prices would see an “unlimited” increase in the case of a military conflict involving Iran, because the group’s members would be unable to make up the lost production.

But, the slide lasted for only about an hour, and the market turned up again. The market ended mostly in the green. The solar sector was pretty strong today, led by SPWR with a deal to build power plants in Florida. SPWR shares jumped +14.42% today. LDK added almost +5% and YGE advanced +5.47%.

After the market, MA shares soared almost $13, or +5.06% on the news that it will replace ACE in S&P 500. Elsewhere, WYNN announced a $500M boost to its share buy back plan, and added that its operations in Macau are much stronger than expected. WYNN shares jumped almost +15% in AH trading. Its competitor, LVS, also benefitted from the news, gaining +8.79% in AH.

The Dow closed up +81.58 points; SPX added +8.7 points; Nasdaq gained +22.96 points:

XLF (financials) and HGX (housing) ended slightly in the red. Most other sectors recorded solid gains. Metals were strong today: XME (metals and mining) +4.44%; GDX (gold miners) +2.89%; GLD (gold) +2.22%; SLV (silver) +0.95%. USO (oil) jumped +4.28% while OIH (oil services) added +2.55%. XLE (energy) rebounded +3.07%. FXI (Chinese ADRs) garnered +3.84$.

SPX

SPX added +8.7 points to close at 1253.39, above the 1250 level. Its daily MAs slid, but the MACD rose.

Nasdaq

Nasdaq gained +22.96 points to close at 2257.85. It managed to close above the 2250 mark. The MACD went higher, although its daily MAs slipped.

The market has gone back and forth around these levels (SPX 1250; Nasdaq 2250) for a few days now. The bounce in the metals and energy sectors sure helped the overall market. Solars are becoming more and more interesting as higher fuel costs will inevitably bring people’s attention back to this sector. The market looks like it’s trying to draw a bottom; it will need to go above, at least, SPX 1280 and Nasdaq 2300 to draw more buyers in. I would also like to see VIX back below 23 before feeling comfortable, because the door is still open right now for VIX to shoot up to 30. Below 23, the momentum should turn. Let’s see how the market closes out the week.

Good night and HappyTrading! ™