Last weekend, in my Market Forecast, it was forecasted:
"For the new week, earninings will still be important factors... Many mining companies are recording this week, a majority of them on Tuesday. Biotech quarterly results are also coming in. The market can test SPX 1200 if the earnings reports continue to be strong. Above 2500 could signal a breakout for Nasdaq. If the market runs fast early in the week, watch for profit-taking mid to end of the week, especially if SPX 1200 gets tested. Initial support for VIX is 18; below that, we could see 16 tested. Gold can continue to be a good indicator: strong gold means money staying in the markets, and vice versa."
Once again, things happened pretty much as forecasted. On Monday, the market jumped higher in the morning. SPX came within 4 points of 1200 while Nasdaq tested 2500. However, we saw profit-taking right away, with SPX closing below 1190. As counter-intuitive as people might think, gold remained a good indicator for money staying in the stock markets. On Tuesday, the market traded in a volatile session, ending flat. We locked in an overnight double in MOS calls. Strong earnings in techs kept the Nasdaq up. On Wednesday, the dollar bounced. Gold fell in the morning, but, quickly bounced; so did the stock market. Thursday saw another range-bound session. SPX tried to rally, but, quickly faded. Nasdaq, on the other hand, managed to close above the 2500 mark. Friday was uneventful, as the market traded flat.
For the week, the Dow was down 14.07 points; SPX added +0.18 point; Nasdaq gained +28.02 points. Gold managed to bounce while oil slipped. At the time of this writing, Asian markets were mostly higher, but, Nikkei (Japan) was off slightly. Let's see how the US market looks after Friday's close:
SPX managed to stay above 1180 while Nasdaq closed above 2500. But, VIX rose higher to above 21. For the new week...
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