The markets

The markets were very subdued today until the meeting minutes of the Federal Reserve were released then we saw some movement. The Nasdaq was up 0.93%, the most of all the indexes and a bit of a surprise, given its move down last week. The other indexes were fairly flat. At one point in the day the Russell 2000 was down considerably, but then it rallied and finished the day only 0.36% down. The industrials were dead flat and the S&P 500 was up just a pinch, along with the transports.

The sectors

With the sectors, technology was up strongly, 0.99%, along with biotech, which had a very nice move up, 1.4%. The weakest sector was energy. It was down a huge 2.03%. That was connected to oil, which was down considerably.

I day traded with elite students yesterday and it was fairly quiet. I did a couple of small trades, first on JUNO. I bought the 30-call option at $1.90 and sold it for $2.30. That was a nice little profit. The other one I traded was Telsa, by buying put options. It was testing its 30-minute opening range-low. It broke below that and stayed around it, but then fell down later in the day. You had to be out of it by 3.30pm when it was around 329. Again, not a bad trade. It did take some time to work out. Tesla has been downgraded by Goldman Sachs today.

Going forward …

Today I have a bearish position that I’m looking to get into with my elite students.

There is still a lot of geo-political unrest in the world. Again there are concerns about North Korea and its latest missile testing. That could escalate, but for now it is not having any impact on the market.

Looking at the S&P 500 – the index accounting for 72% of the US market – it held the support level of 2420. Let’s see if it pushes up from here. The Nasdaq did move up overnight, but it has a gap to fill around 5440. The MACD on the Nasdaq is oversold and is pointing up. Could we see a move higher? It’s hard to call. When the markets open, technology and the Nasdaq are still the ones to watch. They aren’t out of the woods yet. The Nasdaq is sitting on a significant support level but a gap to fill. As always use that opening 30 minutes to gauge where the market wants to go.