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