August 27, 2012 at 00:23 AM EDT
Weekly Wrap-Up + Market Forecast + Sector Watch: SPX, Nasdaq, XLF, GDX, IGV, XRT, GS, WFC, JPM, RGLD, AEM, GOLD, NEM, CRM, VMW, FFIV, KORS, EXPR, GES, RL, TIF, PVH
Last weekend, in my Market Forecast, we discussed: "For the new week, the market might get a slow start once again. Thursday and Friday’s gains have pushed a lot of charts into the "toppy" area. A little pullback could be healthy, although I suspect things might be mixed as there will be sideliners looking to [...]

Last weekend, in my Market Forecast, we discussed:

"For the new week, the market might get a slow start once again. Thursday and Friday’s gains have pushed a lot of charts into the "toppy" area. A little pullback could be healthy, although I suspect things might be mixed as there will be sideliners looking to get into the market. As we’ve been discussing these past couple of weeks, SPX 1420 may present some resistance."

Once again, the forecast was right now. On Monday morning, the market sank lower at open, but, ended the day flat. On Tuesday, SPX pushed higher to above 1425, but, profit-taking kicked in immediately. Gold broke out! We locked in some of our profits on GLD calls and puts on BIDU. The market ended lower on Tuesday. On Wednesday, the market reversed its morning weakness after the Fed’s dovish comments and bounced higher to close. But, the selling pressure built up again on Thursday, sending SPX down to test 1400. However GLD reached a new 3-month high, as we took a +107% win on GLD calls. The market started out weak on Friday, but, buyers came back in after a Bernanke note professed that there is room for more monetary easing. Market ended Friday higher with SPX closing above 1410.

Nevertheless, the market ended the week slightly down. We had a fairly good week with winners on both sides. Here are the closed trades:

  • 08:46 | HappyTrading AMZN ($246.20) Sold to Close 0831C245 Aug 245 calls, at $4.45 +7%
  • 09:24 | Ecstatic Plays AAPL ($664.80) Sold to Close 0824P670 Aug 670 put, at $7.80 +24%
  • 08:52 | HappyTrading PPG ($110.45) Sold to Close 09C110 Sep 110 calls, at $2.85 +14%
  • 06:45 | HappyTrading GLD ($161.55) Sold to Close 09C157 Sep 157 calls, at $5.70 +107%
  • 06:50 | Ecstatic Plays GOOG ($673.00) Sold to Close 0824P670 Aug 670 put, at $3.50 -47%
  • 06:49 | Ecstatic Plays PCLN ($590.00) Sold to Close 0824P580 Aug 580 put, at $2.25 -57%
  • 12:46 | Ecstatic Plays CF ($211.30) Sold to Close 0824P215 Aug 215 put, at $4.60 +37%
  • 10:22 | Ecstatic Plays FAS ($99.00) Sold to Close 0824C95 Aug 95 put, at $4.50 +67%
  • 10:14 | Ecstatic Plays GOOG ($664.50) Sold to Close 0824P675 Aug 675 put, at $12.00 +45%
  • 08:41 | HappyTrading NTAP ($33.20) Sold to Close 09C32 Sep 32 calls, at $1.47 -2%
  • 07:06 | HappyTrading GLD ($159.13) Sold to Close 09C157 Sep 157 calls, at $3.90 +42%
  • 06:47 | Ecstatic Plays BIDU ($128.50) Sold to Close 0824P130 Aug 130 put, at $2.75 +112%

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For the week, the Dow was down 86.88 points; SPX slid 7.03 points; Nasdaq fell just 6.8 points. Oil was basically flat, keeping around $95/barrel. Gold had a big week, rising above $1670/ounce. At the time of this writing, the Asian markets were mixed, with China down once again! Let’s see how the US markets looked after Friday’s close:

SPX

On Friday, SPX added +9.05 points to close at 1411.13. It closed at its 10-day MA. The MACD was flat.

Nasdaq

Nasdaq gained +16.39 points to close at 3067.79. It closed above its daily MAs, but, the MACD slid.

Although both SPX and Nasdaq ended the week lower, they did manage to come back to close above their daily MAs on Friday. On the other hand, VIX fell below 16 again. For the new week…

To read the rest of this article, please subscribe to HappyTrading "Premium Articles" by going to the Premium Services (click here) page. If you are already a subscriber, please click here: Market Forecast 8/26/12.

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