It was another winning week for the markets. Stocks pushed higher once again! Last weekend, in my Market Forecast, I wrote:
"For the new week, I think the markets need to consolidate a bit here. If not, it'll need to go on a parabolic rise. Energy stocks were weak on Friday as the dollar pushed higher. We'll have to watch the dollar in the coming week. It'll likely be a stock/sector-picking environment. As long as the financials can keep their levels, I think the broader market will be able to hold above 1600. Techs seem to have caught buyers' attention; we'll see if the buying can continue."
Financials led the rally, and techs kept the buyers' attention as well. It was a slow start on Monday, but, by Wednesday, SPX was already testing 1660. Thursday afternoon saw some quick profit-taking. But, that didn't last at all. Buyers came in on Friday morning and the markets closed at the high of the week!
We didn't trade much last week as things pushed higher at a fast pace:
09:28 | Ecstatic Plays SPY ($166.12) Sold to Close 0524P166 May 166 put, at $0.93 -15%
07:28 | HappyTrading LNKD ($181.80) Sold to Close 0524P180 May 180 put, at $2.81 -2%
11:22 | Ecstatic Plays LNKD ($187.00) Sold to Close 05C190 May 190 calls, at $1.80 -52%
08:12 | Ecstatic Plays CLF ($23.40) Sold to Close 05C22 May 22 calls, at $1.37 -12%
07:09 | Ecstatic Plays MPC ($76.00) Sold to Close 05P77.5 May 78 put, at $2.40 +17%
For the week, the Dow was up +235.91 points; SPX added +33.77 points; Nasdaq gained +62.39 points. Gold had a big down week, sinking below $1360/ounce. Oil went up a bit to trade near $96/barrel. Asian markets were mostly higher at the time of this writing. Let's see where the US markets closed on Friday:
SPX added +17 points to close at 1667.47. Its daily MAs and MACD glided up.
Nasdaq gained +33.72 points to close at 3498.97. Its daily MAs and MACD also went higher.
Well, both SPX and the Dow are in ever-higher uncharted territory. Nasdaq had a strong week, and has been particularly strong since breaking above 3300. For the new week...
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