And, the Oscar goes to... oops, wrong show. Excuse me... as I was saying...
Last weekend, in my Market Forecast, I wrote:
"For the new week, we could see a quick pullback in the stock market. This rally has gone up and up since September, although we did get a respite in November. Besides geo-political issues, the fight in our Congress over federal spending and budget deficit could also pressure the market. On Monday, gold popped above 1400/ounce and silver went over $33. Oil jumped to around $93/barrel. With the market's rally already extended, we could see a rather sharp pullback, as Asian markets are already experiencing."
Yes, we did get a sharp pullback. For 2-and-a-half days, the market dropped. Monday was a market holiday. Tuesday and Wednesday saw heavy selling across the board, and, we were there to profit from the sell off. Gold, silver, and oil popped. After a spike down on Thursday, the buyers began to come in, as we noted in the Trading Room of the bounce. The market continued the momentum on Friday and rebounded more. We tiptoed back into the longside on Thursday and profitted again from market's quick swings, finishing up a nice trading week with winner on both sides.
For the week, the Dow was down 260.8 points; SPX fell 23.13 points; Nasdaq, fell 52.9 points. Oil popped above $98/barrel and gold traded above $1410/ounce. Silver closed near $33/ounce. At the time of this writing, Asian market were mostly up. However, oil also was trading higher, near $100/barrel! Let's see how the US market looked after Friday's close:
SPX added +13.78 points to close at 1319.88. It closed above the 20-day MA. Its MACD went down.
Nasdaq jumped +43.15 points to close at 2781.05. It also closed above its 20-day MA. Its MACD flattened.
Although we did get a bounce later in the week, VIX did pop, trading above 22 before dropping back to just above 19 on Friday. For the new week...
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