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  • Weekly Wrap-Up + Market Forecast + Sector Watch: SPX, Nasdaq, GLD, FDN, XME, USO, SLV, PCLN, CSCO, ANR, FCX, X, APA, OXY, HES, EOG 0 comments
    Nov 6, 2011 11:04 PM | about stocks: GLD, FDN, XME, USO, SLV, PCLN, CSCOZQ, FCX, X, APA, OXY, HES, EOG

    Last weekend, in my Market Forecast, I said,

    "For the new week...  The market may need to consolidate a bit to start the week.  On Wednesday, we'll hear from the Fed on the latest interest rate decision.  Financials seem strong and if they continue to push higher, the broader market should as well.  Techs should also push higher, if the broader market goes higher.  On the upside, the nearest resistance for SPX is 1300; and for Nasdaq, it is 2800."

    Indeed, on Monday, the market took a pause to consolidate.  However, the market dropped sharply on Tuesday as the Greek PM pulled a political stunt with a call for a referendum that jeopardized the deal made by European leaders just a few days ago for banks to write off 50% of Greece's debt.  On Wednesday, the market started to bounce as European leaders worked feverishly to salvage the situation.  The Fed left interest rates unchanged.  On Thursday, the European Central Bank lowered its interest rate by a quarter of a percentage point.  Then, the Greek PM abandoned his attempt to push for the referendum.  The market clawed back some of the week's earlier losses.  Friday was a volatile day in a tight range, with the market ending slightly lower.

    We didn't trade much this week, the market was being pulled violently by headline news coming out of Europe.  Here are the closed trades:
    11:25 | HappyTrading FFIV ($110.12) Sold to Close 11C100 Nov 100 calls, at $11.30 +79%
    01:29 | HappyTrading AAPL ($396.50) Sold to Close 1104P395 Nov 395 put, at $4.00 -29%
    12:20 | HappyTrading AAPL ($405.80) Sold to Close 1104C410 Nov 410 calls, at $2.65 -32%
    10:09 | HappyTrading APA ($101.80) Sold to Close 11C105 Nov 105 calls, at $2.20 +5%

    For the week, the Dow was down 247.87 points; SPX fell 32.86 points; Nasdaq dropped 51 points.  Both gold and oil went higher, with gold trading above $1750/ounce and oil closing above $94/barrel.  At the time of this writing, Asian markets were little changed.  Here's how the US market closed on Friday:


    SPX fell 7.92 points to close at 1253.23.  It closed just above its 10-day MA.  The MACD remained flat.


    Nasdaq dropped 11.82 points to close at 2686.15.  Its daily MAs glided up, but, MACD was flat.

    Both SPX and Nasdaq managed to climb back to ther respective 10-day MAs, erasing the loss caused by Greek PM's blunder last Tuesday.  However, VIX jumped so much on Tuesday, it still closed above 30 for the week.  For the new week...

    To read the rest of this article, please subscribe to HappyTrading "Premium Articles" by going to the Premium Services (click here) page. If you are already a subscriber, please click here: Market Forecast 11/7/11.

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