Last weekend, in my Market Forecast, I wrote:
"For the new week, it's earnings galore. On the technology side, the
much antipated AAPL earnings happens on Tuesday; NFLX and SNDK report on
Wednesday. Many energy companies will report this week, including OXY
and HES. The market may need a quick pullback to let off some air to
start the week. Then, we'll have to see if AAPL earnings can keep the
investors in the market. FOMC meeting happens on Wednesday and GDP
comes in on Friday."
Well, things once again happened as forecasted. On Monday, the market drifted lower. On Tuesday, things were weak in the morning, but, got stronger ahead of AAPL's earnings. After the market, AAPL delivered a blowout quarter. The market powered higher on Wednesday, after the Fed pledged to keep interest rates low until 2014. Thursday saw profit-taking and Friday was tightly ranged.
We had another nice week with most trades in the GR$$N, once again! We didn't trade much as the market was range-bound. Here were the closed trades:
- 12:22 | HappyTrading POT ($47.58) Sold to Close 02C45 Feb 45 calls, at $3.15 +54%
- 12:07 | HappyTrading POT ($47.47) Sold to Close 02C45 Feb 45 calls, at $3.05 +50%
- 07:17 | HappyTrading SINA ($62.35) Sold to Close 0203P62.5 Feb 63 put, at $2.20 -8%
- 10:35 | Ecstatic Plays NFLX ($117.30) Sold to Close 0127C115 Jan 115 calls, at $3.40 +39%
- 06:53 | Ecstatic Plays MOS ($56.50) Sold to Close 0127C55 Jan 55 calls, at $1.59 +49%
- 06:50 | Ecstatic Plays BIDU ($126.20) Sold to Close 0127C125 Jan 125 calls, at $1.80 +43%
For the week, the Dow was down 60.02 points; SPX added +0.95 point; Nasdaq gained +29.85 points. Gold had a strong week, closing above $1730/ounce. Oil was little changed. At the time of this writing, most Asian markets were slightly lower. Taiwanese market, however, was up more than +2%. Here's where the US market closed after Friday's close:
SPX
On Friday, SPX slid 2.1 points to close at 1316.33, still below 1320. Its daily MAs and MACD were little changed.
Nasdaq
Nasdaq added +11.27 points to close at 2816.55. Its daily MAs went up and the MACD stayed flat.
The broader market basically didn't go anywhere last week. VIX actually closed a little higher. For the new week, the market will be watching the Euro Summit with a special eye on the Greek debt deal. In addition, more earnings will pile in this week. To break higher, SPX will need to push above 1320. The market has been pushing higher since the beginning of the year. It took a rest last week, and, will likely need some good news from Europe to break out further. Energy stocks have been weak. Financials also took a break last week, likely waiting to hear from Europe on Greece.
Sector Watch
SLV (silver)
Both SLV and GLD (gold) popped higher last week after Fed's announcement on extending low interest rates. SLV could be on the verge of a bigger jump! SLV has a gap to fill at $38. SLW has been rising along with silver. PAAS has been lagging.
MOO (agriculture)
MOO pushed higher last week. It took a quick pause after POT's earnings, but, continued to push higher on Friday. This sector could be ready for the next leg up. AGU has yet to report. MOS looks ready to breakout.
XME (metals and mining)
XME also had a nice week last week, although CLF pulled back on Friday. We could see this sector break higher as well. If CLF can recover what it lost on Friday, it could be a very good signal. Also, if gold and silver push higher, miners will likely follow as well. FCX looks very strong.
IGV (software)
IGV stayed strong last week, even with weakness in CTXS. FFIV, CRM, VMW stayed strong and should push higher in a stronger market environment.
Good night and HappyTrading! ™
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