It was another volatile week. Once again, the broader market could not find a real direction, but, went through wild swings. On Tuesday, the market tried hard to break out and tested SPX 1530. On Wednesday and Thursday, it reversed directions, in a big way, and sank down to test SPX 1500. On Friday, it came back up, but, still closed below SPX 1520.
We traded on both sides and here are the closed trades for the week. RIG puts gave us a nice +87% gain:
The market was led by HPQ on Friday, which rose more than +12% after delivering a strong quarterly report. ARUN vaulted +22% after topping estimates just slightly. Computer security software stocks caught investors attention as both FIRE and AVG reported strong quarterly numbers, each popping more than +14%.
On Wednesday, in my evening article, I mentioned that BBRY may be coming down to test the $12 level. BBRY dropped more than 5% on Friday to close just above $13. It has some support at $13, but, it still looks like it’s on its way to $12.
Here’s another idea on the downside: NFLX
On Tuesday, NFLX almost touched $200. NFLX has been rising relentlessly for a month after its recent quarterly report. It seems like investors are starting to lock in profits on this, especially with the market being wobbly last week. $170 is the next support, which it spent more than week trying to break above after the initial earnings jump. In a weak market environment, I can see this quick drop to $150. But, we’ll have to see how the market does next week. The likely scenario is that NFLX comes down to somewhere between $170 and $160.
This market is trying to figure out where to go from this SPX 1500 to SPX 1520 range. I’ll be back on Sunday with my weekly Market Forecast, and we’ll discuss various sectors in more detail.
Hope you’re enjoying your weekend!
Happy Saturday and HappyTrading! ™