Stocks bounced higher last week. Financial and energy stocks strengthened. Here’s what I wrote in my Market Forecast last weekend,
"For the new week, if the overnight bullishness in Asia transfers over, we should see SPX continues to bounce above 1660. Then, we’ll have to see what SPX does with 1680. Nasdaq, however, is challenging 3700 again. Above 3700, we could see a breakout from Nasdaq. Financials will need to show much more strength if the market were to turn bullish again. Energy stocks are looking much stronger. Also, surprisingly, buyers are moving back into agriculture stocks."
The market charged higher on Monday and by Tuesday, SPX was already above 1680. It spent the next 3 days traversing in a tight range between 1680 and 1690. We took in some nice profits early in the week and pretty much sat on cash as the market consolidated:
- September 10, 2013
- 08:23 | HappyTrading WYNN ($149.75) Sold to Close 09C145 Sep 145 calls, at $5.50 +170%
- 08:00 | HappyTrading WYNN ($149.45) Sold to Close 09C145 Sep 145 calls, at $5.30 +160%
- 07:53 | HappyTrading FSLR ($39.53) Sold to Close 0913C38 Sep 38 calls, at $1.73 +73%
- 07:52 | HappyTrading WYNN ($149.30) Sold to Close 09C145 Sep 145 calls, at $5.20 +155%
- September 09, 2013
- 12:52 | Ecstatic Plays AAPL ($506.10) Sold to Close 09C500 Sep 500 calls, at $15.10 +26%
A lot of money on the sideline seems to continue to pour into stocks and looking for laggards to land. The market has been volatile in the past month, and staying away from daytrades seem to be the right thing to do. Trading slower and having more patience have been working out really well for us.
For the week, the Dow added +453.56 points; SPX gained +32.82 points; Nasdaq climbed +62.17 points. Gold took a big drop, back down to below $1330/ounce. Oil bounced a big, but still below $110/barrel. At the time of this writing, Asian markets were . Let’s take a look at the US markets,
On Friday, SPX added +4.57 points to close at 1687.99. It closed above its daily MAs. The MACD glided up.
Nasdaq gained +6.21 points to close at 3722.18. Its daily MAs turned higher.
Both SPX and Nasdaq closed above their respective daily MAs. Overnight, the futures are up as Summers withdrew from the consideration to succeed Bernanke as Fed Chairman. For the new week…
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