Last weekend, in my Market Forecast, I wrote:
"For the new week, I would still be cautious. It has been a V-shaped reversal. Things don't normally come back up this fast! Things tend to fall faster than they rise. SPX is basically testing its all-time high. Nasdaq has completely regained its recent altitude. One thing that I have to point out, though, is how strong the semiconductor sector was last week. I think a consolidation is needed. On the upside SPX 1850 is the resistance. On the downside, SPX has support between 1820 and 1800."
Indeed, markets traded in a tight range. It was really a stock (sector)-picking environment. We didn't trade much, but, still came away with a few winners:
- 07:42 | HappyTrading STX ($51.10) Sold to Close 02C50 Feb 50 calls, at $1.10 +47%
- 08:34 | HappyTrading VRTX ($84.25) Sold to Close 02C80 Feb 80 calls, at $4.30 -14%
- 08:20 | HappyTrading SLB ($91.45) Sold to Close 02C87.5 Feb 88 calls, at $4.04 +19%
- 07:45 | HappyTrading VHC ($20.20) Sold to Close 03C18 Mar 18 calls, at $2.85 +68%
- 07:40 | HappyTrading WLP ($89.00) Sold to Close 02C87.5 Feb 88 calls, at $2.00 +94%
For the week, the Dow was down 51.09 points; SPX slid 2.38 points; Nasdaq climbed +19.39 points. Gold ended slightly up, trading just above $1320/ounce. Oil pushed higher to above $102/barrel. At the time of this writing, Asian markets were lower. Here's were the US markets closed on Friday:
On Friday, SPX was down 3.53 points to close at 1836.25. The daily MAs and MACD were little changed.
Nasdaq slid 4.13 points to close at 4263.41. The daily MAs and MACD crept up.
Both SPX and Nasdaq basically traded flat. For the new week...
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