Last weekend, in my Market Forecast, I wrote,
"For the new week... While a big bulk of earnings is coming in this week, the market will
likely have its attention on Europe. Nearest resistance for SPX is
1250. On the other hand, if Nasdaq breaks above 2650, it could break
out. Financials could once again be the key. Industrials are
strengthening. Metals and mining could be very important next week..."
On Monday, the market popped above SPX 1250. But, the market reversed its direction on Tuesday, giving back all the gains made on Monday. Wednesday was a turn-around day, as we discussed in the Trading Room. That evening, Europe reached a deal for Greek debts. The market went on an amazing rally on Thursday, and we locked an overnight profits. Friday, as expected, was a tightly ranged day.
We had a solid week and a very good month!
For the week, the Dow was up +422.32 points; SPX added +46.84 points; Nasdaq gained +99.69 points. Both gold and oil went higher as well, with gold trading above $1740/ounce and oil climbing above $92/barrel. This eveing, at the time of this writing, Asian markets were mostly seeing some profit-taking. Let's take a look at how the US market closed on Friday:
SPX
On Friday, SPX added +0.5 point to close at 1285.09. The daily MAs and MACD glided up.
Nasdaq
Nasdaq slid 1.48 points to close at 2737.15. Its daily MAs and MACD were up slightly.
Both SPX and Nasdaq closed above the recent trading range. For the new week, more earnings are coming in. Here are some notable ones:
Monday: (AM) CYOU, SHW; (PM) ACUR, LEAP, SANM, VVUS
Tuesday: (AM) BPI, BHI, CME, MLM, OSK; (PM) CF, BOOM, EOG, JDSU, OPEN, THOR
Wednesday: (AM) AOL, CLX, CTSH, DVN, ICE, LVLT, MA, GOLD, TEVA; (PM) AFFX, JCOM, QCOM, VCLK, VMC, WLT, WFM
Thursday: (AM) ANR, LNG, CPK, MGM, STRA; (PM) JOBS, CHK, MELI, SWKS, SUN, SPWRA
Friday: (AM) G
The market may need to consolidate a bit to start the week. On Wednesday, we'll hear from the Fed on the latest interest rate decision. Financials seem strong and if they continue to push higher, the broader market should as well. Techs should also push higher, if the broader market goes higher. On the upside, the nearest resistance for SPX is 1300; and for Nasdaq, it is 2800.
Sector Watch
XLE (energy)
XLE broke above the resistance at $67.5 last week and is starting to rising alont its daily upper BB. Its daily MAs have a new bullish formation. OXY reported solid earnings and is going up strongly. APA and EOG look good.
XME (metals and mining)
XME is already rising along its daily upper BB. Coal stocks made some big jumps last week. CLF reported good earnings. We'll hear from ANR and WLT this week.
XLF (financials)
XLF also pushed higher, closing just above $14. GS, JPM, BAC, C are all strong. Financials could have a lot of catching up to do and can drive the broader market higher. MA is reporting on Wednesday morning. PNC looks good.
GLD (gold)
GLD had a good week last week, but, was seeing some pullback tonight at the time of this writing. We could see buyers on the dip on gold. Gold miners are looking strong. GOLD, the miner, is reporting on Wednesday morning.
MOO (agriculture)
MOO continues to look good. CF reports after market on Tuesday. POT and MOS has some catching up to do.
Good night and HappyTrading! ™
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