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:
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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! ™