What a refreshing day Monday was, after what happened last week! On Sunday night, I said, "We’ll likely see more volatility in the beginning of the week." Today, the market opened lower. Financials, housing, oil refiners, oil services, and metals all got hit early on and quickly slid
 |
to new lows. But, at one point, the VIX jumped over 26! On the members board, I commented, "The market was hitting all those that were still high (PCU/FCX/ACH/BIDU/FWLT/FFIV…etc). But, VIX is so high; not chasing puts right now either. "
Soon after that, the market started to turn. And, much to my pleasant surprise, SPX climbed all the way back to above the support levels that we’ve been talking about (1440-1460), closing at 1467.67! The Dow added nearly 300 points! Today’s actions pretty much cancelled out Friday’s damage. The market now stands in a nice neutral place, waiting for the Feds to make the call.
Asian markets seem to be picking up the same vibes and are waiting to see how the U.S. market will react on Tuesday. Even though in China, they seem to think that their inflation will be contained. Hong Kong, China, and Japan are all just slightly in the green after the morning session. Maybe people are feeling a bit "sheepish" right now, and not sure if they want to be bulls or bears. There’s certainly no need to act too fast, and there’s nothing wrong with being cautious and patient!
Both Phil and Zman had been looking for the oil to come down. Today’s stock market rally was nicely accompanied by a continuing fall in oil and gas prices. September oil fell more than $3/barrel, and gas futures slid more than 10 cents to settle below $2 a gallon. Also, on Zman’s site, he is keeping an eye on the companies that are reporting this week.
WYNN reported strong results after the market, sending its shares up more than +10%, to above 118, in AH! LVS also benefitted from the news, going up +3.76 points, to almost 103, in AH! Both LVS and WYNN were featured in my post on 7/30, LVS was trading around 86, and WYNN was trading around 100! Many our members should be quite "happy" tomorrow morning, as one of our members posted this note:
 |
So, we wait "cautiously and patiently" for the Feds to decide on the rates tomorrow. Still holding mostly cash!
Good night and HappyTrading! ™
