Morning Bounce Turns Into Afternoon Selloff: SPX, Nasdaq, RIO, FCX, X, APA, OXY, DVN, AAPL, RIG, GS, MA, JCP, SINA
Things are progressing along my forecast from this weekend, in which I wrote: "…this market is getting weaker and should test SPX 1340.  If the drop goes sharply, we may see 1330 tested." Yesterday, market came down to test SPX 1340.  This morning, SPX bounced up to 1345, but, in the afternoon, the selling pressure [...]

Things are progressing along my forecast from this weekend, in which I wrote:

"…this market is getting weaker and should test SPX 1340.  If the drop goes sharply, we may see 1330 tested."

Yesterday, market came down to test SPX 1340.  This morning, SPX bounced up to 1345, but, in the afternoon, the selling pressure persisted, and SPX came down to test 1330.

Weakest sectors were mining and energy, as discussed in the Sector Watch this weekend: RIO -4.22%; FCX -4.81%; X -6.23%; APA -2.99%; OXY -2.16%; DVN -2.23%.  We were sitting on downside plays since Friday last week, and booked some nice gains during the first 2 days of this week:

  • 12:55 | Ecstatic Plays AAPL ($551.80) Sold to Close 05P555 May 555 put, at $7.30 +64%
  • 12:38 | Ecstatic Plays AAPL ($553.70) Sold to Close 05P555 May 555 put, at $7.00 +57%
  • 12:35 | HappyTrading AAPL ($553.40) Sold to Close 05P555 May 555 put, at $6.35 +43%
  • 07:00 | Ecstatic Plays RIG ($44.20) Sold to Close 05P47.5 May 48 put, at $3.35 +68%
  • 06:51 | HappyTrading MA ($415.30) Sold to Close 05P420 May 420 put, at $7.50 +21%
  • 06:42 | Ecstatic Plays AAPL ($557.60) Sold to Close 05P560 May 560 put, at $7.65 +15%
  • 12:56 | HappyTrading MA ($415.10) Sold to Close 05P420 May 420 put, at $8.00 +29%
  • 12:51 | Ecstatic Plays AAPL ($558.30) Sold to Close 05P560 May 560 put, at $7.75 +17%
  • 12:50 | Ecstatic Plays RIG ($44.20) Sold to Close 05P47.5 May 48 put, at $3.40 +71%
  • 12:15 | Ecstatic Plays RIG ($44.40) Sold to Close 05P47.5 May 48 put, at $3.25 +63%
  • 07:43 | HappyTrading GS ($100.00) Sold to Close 05P105 May 105 put, at $5.35 +78%
  • 07:36 | HappyTrading GS ($100.00) Sold to Close 05P105 May 105 put, at $5.40 +80%

(to subscribe to our Premium Services, please visit our Services Page or CLICK HERE to watch a step-by-step instructional video)

The Dow was down 63.35 points; SPX fell 3.69 points; Nasdaq dropped 8.82 points:

XME (metals and mining) was down 4.01%.  GDX (gold mininers) lost 3.98%.  XLE (energy) fell 1.66% and OIH (oil services) slipped 2.26%.  XLF (financials) slid 0.52%.

SPX

SPX slid 7.69 points to close at 1330.66.  Daily MAs and MACD went lower.

Nasdaq

Nasdaq dropped 8.82 points to close at 2893.76.  Its daily MAs and MACD also went lower.

After the market, JCP reported a quarterly loss and rescinded its dividend; its shares tumbled more than 12% in after-hours.  On the other hand, SINA reported a strong quarter with better-than-expected results.  SINA shares popped +7.51% this evening.

This market continues to slide lower.  Gold and oil are also slipping down.  Gold could test $1500/ounce soon, while oil could see $90/barrel.  Below 1330, SPX has support at 1320.  I think stocks could continue to fall for a couple of more days.  We’ll have to see if Facebook’s IPO on Friday can inspire some buyers back into the markets.

Good night and HappyTrading! ™

Sign up for FREE membership!

Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here