Markets opened strongly on Thursday, buy, ended in the red. SPX made a new all-time high at 2011.17. In my Market Forecast this weekend, I said that the market will continue to consolidate. After 3 days of trading, SPX has been pretty flat.

Buyers came in early today. One of the big gainers today was AMZN. Yesterday, we picked up AMZN Sept 340 calls at $5.7. This morning we sold them as high as $12.5 for an overnight +119% gain:

• 07:36 | Ecstatic Plays AMZN ($349.00) Sold to Close 09C340 Sep 340 calls, at $12.50 +119%
• 06:38 | Ecstatic Plays AMZN ($347.60) Sold to Close 09C340 Sep 340 calls, at $10.60 +86%
• September 03, 2014
• 08:35 | Ecstatic Plays AMZN ($339.00) Bought to Open 09C340 Sep 340 calls, at $5.70

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Energy stocks were weak. EOG was down 2.91%; APA lost 1.59%; APC dropped 2.66%; SLB fell 2.34%; NOV slid 1.76%.

The Dow was down 8.7 points; SPX lost 3.07 points; Nasdaq fell 10.28 points:

OIH (oil services) dropped 2.25%. GDX (gold miners) tumbled 3.5%. BTK (biotech) fell 1.45%. XLE (energy) slid 1.35%.

SPX

SPX fell 3.07 points to close at 1997.65. It closed right at the 10-day MA. MACD was slightly down.

Nasdaq

Nasdaq fell 10.28 points to close at 4562.29. It also closed at the 10-day MA.

Both SPX and Nasdaq showed some weakness today, even though a new all-time high as made. There are definitely sellers, perhaps raising cash. SPX reversed an 11-point gain to a 3-point loss. Biotechs were being sold, as well. They have been so strong lately. It looks like people are locking in profits to raise cash. Agriculture sector also sold off. MON, CF, AGU, and POT all went lower. Among the internet stocks, PCLN caught my attention as it fell more than $30 in 2 days. It could come down to test $1200. VIPS fell 2.2% today. This stock has also been showing signs of weakness and can quickly come down to below $190.

We haven't been trading much this week, and have been locking in profits. Things are getting more volatile. Let's be patient and wait for clearer signs.

Good night and HappyTrading! ™

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