Last weekend, in my Market Forecast, I wrote:
"For the new week, we should see strength in the market early in the week. Friday's jobs report actually paints a very good scenario for the stock market. While jobs were added, the unemployment rate was left unchanged. This should help to keep a lid on the dollar while boosting investor's convidence in the economic recovery. Commodities were strong last week, and this week, we'll need to see financials and techs do their share of the lifting. SPX is now comfortably above 1170 and is very close to its daily upper BB. SPX needs to break above 1180 to catch the daily upper BB and ride higher. On the other hand, techs saw profit-taking on Friday and barely above the 2400 level. We'll need to see some strength in tech stocks to push Nasdaq above 2425, which seems to be the next resistance. If techs and financials can rally this week, we should see SPX close above 1180."
Things pretty much happened as forecasted. Indeed, the market came out the gate strongly, rallying higher on Monday and Tuesday. Wednesday and Thursday saw some profit-taking, but, the market was able to bounce back on Thursday afternoon. On Friday, the market pushed to new heights in the last hour closing SPX above 1190 and Nasdaq above 2450! Both financials and techs took the lead, while commodity sectors rested.
We did not make too many trades this week as the market jumped fast on Monday and saw a quick pullback on Wednesday. Here are the closed trades:
April 08, 2010
12:41 | HappyTrading WLT ($95.40) Sold to Close 04P95 Apr 95 put, at $2.25 -24%
09:14 | HappyTrading AMZN ($140.15) Sold to Close 04C135 Apr 135 calls, at $6.40 +8%
07:25 | HappyTrading POT ($112.75) Sold to Close 04P115 Apr 115 calls, at $3.95 +10%
April 06, 2010
08:56 | HappyTrading CLF ($74.75) Sold to Close 04C75 Apr 75 calls, at $2.40 -20%
06:56 | HappyTrading CME ($313.00) Sold to Close 04C320 Apr 320 calls, at $3.00 -54%
April 05, 2010
12:15 | HappyTrading WYNN ($82.10) Sold to Close 04C75 Apr 75 calls, at $7.50 +50%
09:58 | HappyTrading FFIV ($65.67) Sold to Close 04C60 Apr 60 calls, at $5.90 +51%
07:50 | HappyTrading WYNN ($80.95) Sold to Close 04C75 Apr 75 calls, at $6.50 +30%
For the week, the Dow was up +70.23 points; SPX added +16.27 points; Nasdaq gained +51.47 points. Oil finished the week flat, but, gold pushed above $1160/ounce! This eveing, at the time of this writing, Asian markets were mostly higher. The big news tonight is that eurozone governments agreed to make a euro30 billion loan available to Greece. We'll discussed potential trades off of this new development, which should affect the dollar/gold/oil trio, in the Sector Watch section of this article. Let's see how the US market indices look after Friday's close:
SPX
On Friday, SPX added +7.93 points to close at 1194.37, above the 1190 level. Its daily MAs and AMCD turned back up!
Nasdaq
Nasdaq gained +17.24 points to close at 2454.05. Its daily MAs and MACD also went higher.
Both SPX and Nasdaq have pushed to new heights and are riding up on their daily upper BBs. VIX continues to slide lower and is barely above 16. For the new week...
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