U.S. stocks suffered their worst one-day decline in nearly three months Thursday as bank shares fell under the threat of new regulations, while the basic-materials sector suffered from worries about global tightening.
After closing at 15-month highs on Tuesday, the Dow Industrials [.DJIA 10389.88 -213.27 (-2.01%)], S&P 500 [.SPX 1116.48 -21.56 (-1.89%) ], and Nasdaq Composite [COMP 2265.70 -25.55 (-1.12%) ] are down well over 2 percent over the past two days. This gives the Dow its worst 2-day decline since August, and the S&P 500 and Nasdaq their worst 2-day losing streak since October.
On a day when Goldman (GS 160.22, -0.94, -0.58%) reported a full-year profit of more than $13 billion, President Barack Obama proposed that banks and financial institutions that contain banks should be banned from running proprietary trading operations unrelated to serving customers.
SPX closed right on 47 SMA, and major support line and we will wait tomorrow to see if its going to break below that level (1114) and see the long waited correction, or it will just bounce off. In normal trading times where technical analysis are in order, this will be buy signal. But please do not rush as the markets are news driven. If you are in rush to get in trade tight risk management is a must. Look the at chart below:
From my Trading Diary
FUTURES
DATE TYPE REF # DESCRIPTION FEES COMMISSIONS P/L BALANCE
01/21/10 BAL Cash balance at the start of today 115390.06
01/21/10 TRD 67070230 SOLD -1 /ESH0 @1133.75 -3.5 115386.56
01/21/10 TRD 67070624 BOT +1 /ESH0 @1132.50 -3.5 62.5 115445.56
01/21/10 TRD 67070689 SOLD -1 /ESH0 @1133.25 -3.5 115442.06
01/21/10 TRD 67070696 BOT +1 /ESH0 @1133.25 -3.5 115438.56
01/21/10 TRD 67071504 SOLD -1 /ESH0 @1133.00 -3.5 115435.06
01/21/10 TRD 67071595 BOT +1 /ESH0 @1132.50 -3.5 25 115456.56
01/21/10 TRD 67072160 SOLD -1 /ESH0 @1133.00 -3.5 115453.06
01/21/10 TRD 67073037 BOT +1 /ESH0 @1131.00 -3.5 100 115553.06
OPTIONS
Order ID Description
67195747 SOLD -10 VERTICAL FAZ 100 FEB 10 19/20 CALL @.26
To use the margin from sold bull put spread FAZ 16/17 Put
67196434 SOLD -1 VERTICAL AAPL 100 FEB 10 200/195 PUT @1.70
To use the margin from sold bear call spread AAPL 220/250 Call
67197359 SOLD -1 XLNX 100 FEB 10 24 CALL @1.45
Close the trade with 100% profit. Originally bought XLNX 24 Call @ 0.70, because of upgrade news
67198428 SOLD -10 VERTICAL SPX 100 (Weeklys) JAN4 10 1125/1130 CALL @.70
67198463 SOLD -10 VERTICAL SPX 100 (Weeklys) JAN4 10 1100/1075 PUT @.50
I sold this 2 verticals Half an hour before expiration, collect 1.20 for 30 min pretty safe :)
67201212 BOT +10 CONDOR SPX 100 FEB 10 1115/1120/1125/1130 CALL @.30
Very cheap condor, will close it on Monday, just need little up move in next 20 days
67202207 BOT +1 XSP 100 FEB 10 112 CALL @2.05
S&P 500 is on 47ma, looking to bounce off the support after bigest 2 days fall in 2010
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