The market opened lower on Monday, but, quickly rebounded.  Today, the selling resumed; well, at least in the morning.  SPX went briefly below 1350 and Nasdaq tested 2900.  Things were moving fast and the options were moving even faster!  We jumped into LNKD and CMG puts in the morning and had two doubles in less than 30 minutes!  We cashed out LNKD with as high as +156% gain:

• 07:39 | HappyTrading LNKD ($102.90) Sold to Close 0511P105 May 105 put, at $4.60 +156%
• 07:35 | HappyTrading LNKD ($103.70) Sold to Close 0511P105 May 105 put, at $3.70 +106%
• 07:11 | HappyTrading LNKD ($106.70) Bought to Open 0511P105 May 105 put, at $1.80

I hesitated on CMG with the puts going from $5.1 to $10, and, had to just take whatever profit we had before things started to go back up:

• 10:19 | Ecstatic Plays CMG ($397.90) Sold to Close 0511P400 May 400 calls, at $6.10 +17%
• 07:21 | Ecstatic Plays CMG ($399.50) Bought to Open 0511P400 May 400 put, at $5.20

Yesterday, VRTX jumped +55%, after reporting positive test results for its cystic fibrosis treatment.  We got into VRTX May 38 calls on Apr 27 at $2:

• April 27, 2012
• 08:08 | HappyTrading VRTX ($38.50) Bought to Open 05C38 May 38 calls, at $2.00

We cashed most of them out yesterday with a gain of about +800%:

• May 07, 2012
• 11:22 | HappyTrading VRTX ($56.30) Sold to Close 05C38 May 38 calls, at $18.40 +820%
• 09:23 | HappyTrading VRTX ($54.60) Sold to Close 05C38 May 38 calls, at $16.50 +725%

We cashed the rest out today at +1185%:

• May 08, 2012
• 12:50 | HappyTrading VRTX ($63.80) Sold to Close 05C38 May 38 calls, at $25.70 +1185%

We also took the rest of our CMI puts at +102%:

• May 07, 2012
• 11:08 | Ecstatic Plays CMI ($105.40) Sold to Close 05P110 May 110 put, at $5.85 +102%

Just around noon today, the market hit an intraday low and started to bounce.  We quickly switch gears and cashed out our downside positions and initiated a new longside position with GOOG calls.  In about an hour, we locked in some solid gains just before the close:

• May 08, 2012
• 12:49 | HappyTrading GOOG ($614.80) Sold to Close 0511C610 May 610 calls, at $8.70 +47%
• 12:36 | HappyTrading GOOG ($615.50) Sold to Close 0511C610 May 610 calls, at $9.10 +54%
• 12:23 | HappyTrading GOOG ($612.70) Sold to Close 0511C610 May 610 calls, at $7.50 +27%
• 11:40 | HappyTrading GOOG ($609.40) Bought to Open 0511C610 May 610 calls, at $5.90

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On the earnings front, FOSL dropped about 38% after warning about weakness in Europe.  Fashion stocks suffered on the report:  RL fell more than 3%.  LULU also dropped 3%.

The Dow was down 76.44 points; SPX slid 5.86 points; Nasdaq fell 11.49 points:

GDX (gold miners) was down 3.43%.  GLD (gold) and SLV (silver) both dropped about 2%.  UNG (natural gas) popped +4.73%.

SPX

SPX did 5.86 points to close at 1363.72.  Its daily MAs were flat while the MACD went down.

Nasdaq

Nasdaq fell 11.49 points to close at 2946.27.  Its daily MAs and MACD were down.

This market just refuses to go down.  A quick test to 1350 brought buyers right back in and drove the SPX back above 1360 for the close.  If this bounce continues tomorrow, the pullback may be done!  I thought the market might bounce off of 1350 today, but, I did not expect the bounce to be so strong that it pushed SPX back above 1360.  We’ll have to see how the market goes tomorrow.  However, it does look like gold and silver are going lower.  I’d also look for RL and LULU to fall back to retest today’s lows.

Good night and HappyTrading! ™

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