Last weekend, in my Market Forecast, I wrote:
"For the new week, the market may need a little breather to start, although we may see the market mixed, as there are still many sectors that could see stronger bounces. The profit-taking should be shallow, as people who are still sitting on the sidelines would rush in to buy. Financials were really strong last week, and continued strength in the sector can push the broader market higher. Energy and mining stocks have a lot of catching up to do. Techs will run as long as the broader market tone stays positive."
It’s amazing how a simple paragraph can sum up what happens in a whole week, isn’t it? The forecast was once again on the mark. On Monday, the market slipped, but, as expected, the profit-taking was shallow. Through Tuesday and Wednesday, the market traded within a tight range. Things were quiet on Thursday morning ahead of the Fed announcement. Once the Fed announced QE3, the market took off. Financials were strong, and industrials tried to catch up. Techs rallied along with the broader market.
The result? Market indices closed the week at multi-year highs, and SPX tested 1475!
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We had an awesome week with most of the trades returning more than +100%!
For the week, the Dow was up +286.73 points; SPX added +27.85 points; Nasdaq gained +47.53 points. Gold shot up to above $1770/ounce and oil popped above $99/barrel. Asian markets were mixed at the time of this writing. Let’s see where the US market closed on Friday:
SPX added +5.78 points to close at 1465.77. the daily MAs and MACD went higher.
Nasdaq gained +28.12 points to close at 3183.95. Its MACD and daily MAs also pushed higher.
Both SPX and Nasdaq broke out higher. VIX, interestingly, closed a bit higher at 14.51. For the new week…
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