Stocks Mixed After Fed Keeps Rates Low: SPX, Nasdaq, NUE, GMCR, PAY, CMG, VIPS, BIDU, DD, NFLX, AMZN, LNKD, SSYS, DDD

It has been a very volatile week, especially for tech stocks. On Monday, Nasdaq experienced a sharp pullback as internet stocks led the selloff. We were quick to participate in some puts. We traded CMG twice with Sept 660 and 655 puts, both yielded nice intraday gains. Personally, I also took risks on VIPS and BIDU puts, which also worked out well!

But, buyers came in again. Steel stocks have been strong. We jumped on NUE Oct 55 calls yesterday, and locked in an overnight +142% profit this morning! Here are the closed trades for the week so far:

  • September 17, 2014
  • 11:53 | HappyTrading GMCR ($135.35) Sold to Close 10C130 Oct 130 calls, at $7.60 +30%
  • 06:41 | Ecstatic Plays NUE ($58.50) Sold to Close 10C55 Oct 55 calls, at $3.71 +142%
  • September 16, 2014
  • 07:14 | HappyTrading PAY ($37.27) Sold to Close 09C36 Sep 36 calls, at $1.45 +45%
  • September 15, 2014
  • 08:33 | Ecstatic Plays CMG ($650.60) Sold to Close 09P655 Sep 655 put, at $9.50 +51%
  • 07:04 | Ecstatic Plays CMG ($655.00) Sold to Close 09P660 Sep 660 put, at $10.00 +33%

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Today, the Fed reiterated its intention to keep the rates low for "considerable time", but, also indicated that once it starts raising rates it might be faster than expected. Stocks climbed higher initially, but, fizzled out to nearly flat at the close.

The Dow was up +24.88 points; SPX added +2.59 points; Nasdaq gained +9.43 points. Gold fell to about $1224/ounce as dollar rose again:

SPX

SPX added +2.59 points to close at 2001.57. It closed above its daily MAs. The MACD flattened.

Nasdaq

Nasdaq gained +9.43 points to close at 4562.19. It closed just below its 10-day MA. The MACD was slightly lower.

Monday's weakness to Nasdaq down quite a bit. But, after today's close, both SPX and Nasdaq are basically back into neutral gear. Many internet stocks still appear weak, for example NFLX, AMZN, and LNKD. Tomorrow, Alibaba will start trading under the symbol "BABA". We'll see how it affects this sector. Things could still go either way, as the market goes through more consolidation.

DD shares jumped today as Trian Fund urged the company to split into two. I think DD will head higher, even after a pop of +5.2% today. I piced up Oct 67.5 calls this morning and locked in a nice gain at the end of the day today. But, I'll be looking for an opportunity to go back in. SSYS had a nice run today, topping $130 intraday. DDD has been seriously lagging, which could be one to watch.

Good night and HappyTrading! ™

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Posted to Ecstatic Plays on Sep 18, 2014 — 1:09 AM
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