The US markets ended the month of March with SPX at record closing high at 1569.19, just shy of 1570! The Dow pushed further into record territory. Techs still lagged, with AAPL, AMZN and GOOG having a losing month. Software stocks were mostly down with ORCL suffering a big drop after its earnings. Still the broader market kept its strength.
We had a pretty good month with most of our trades ending in the green. We traded AAPL calls quite a bit and came away with good profits. FAS also provided us with a good win at the beginning of the month. Here are the closed trades for the month:
Biotechs ended the quarter with a big pop. BIIB, CELG, AMGN, and BMRN continued to push into new heights. Financials took a respite, but, MA and V ended the month strongly. After a strong quarter, we could see more retail investors come back into the markets, but, traditionally April and May have not been strong months. China, Hong Kong, and Taiwan have turned bearish, and Japan has started to draw a top, after a parabolic rise since November of 2012! The focus is going to shift towards earnings as April starts. Already, we can see big players jostling for position in major sectors and market leaders.
We have been trading much slower as intraday volatility makes quick trades much more difficult. The computer trading from the big firms are definitely changing the market landscape on day trades. Unless there are events that drive the broader market, or individual stocks, we will, in general, go into trades with a longer timeframes in mind. This will make following trades much easier, as you won’t need to be watching the market constantly and hurry to make the trades when you receive the alerts. The intraday volatility will likely allow you to catch the trade within hours, or even within days, of the published alerts!
I think April and May will be very interesting months. We may soon find out whether the recent weakness in the Asian markets is a leading indicator for the US or perhaps it just means that more money is rolling into the US because it is the best place to be!
Please stay tuned for my Market Forecast and Sector Watch on Sunday evening!
Good night and HappyTrading! ™