Last weekend, in my Market Forecast, I discussed,
"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."
Once again (somehow it feels like I’m saying that a lot lately!), things progressed as forecasted. On Monday, the market gapped lower on worries over Europe. On Tuesday, the market fought hard to fight back, and, we locked in our profits and a very profittable month of January. On Wednesday, good news came out of Europe and US payroll data provided more positive surprise. SPX closed above 1320. Thursday brought another pause, as the market awaits the latest unemployment report. But, we picked the right winners at the right time scoring +229% gain on GMCR and +109% profit on SINA. The market popped another leg up on Friday, as the unemployment rate fell again.
We just wrapped up an excellent month of Jauary, and, we started February with another solid week, filled with "happy" and "ecstatic" trades.
For the week, the Dow gained +201.77 points; SPX added +28.57 points; Nasdaq gained +89.11 points. Gold and oil were both down. At the time of this writing, Asian markets were mostly up. Here’s how the US market closed on Friday:
SPX added +19.36 points to close at 1344.9. Its daily MAs and MACD went up.
Nasdaq gained +45.98 points to close at 2905.66. Its daily MAs and MACD climbed higher.
Wow, that was a strong week to start off February. All 3 major indices broke out! This market is testing the 2011 highs. For the new week…
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