Believe it or not, last week, after all the craziness, the broader market came out ahead! The Dow closed up +56.73 points, at 13239.54, for the week; SPX was up +20.58 for the week, closing at 1453.64; Nasdaq added +33.64 for the week to close at 2544.89.
Here’s a quick snapshot of the actions last Friday:
SPX actually closed green on Friday! Wow! =) SOX kept above 500, pretty good! OIH made a bounce. GLD (gold) and UNG (natural gas) both made some solid advances.
Over in Asia, the central banks are taking further steps to inject more money into the banking system. Asian markets are slightly up in the morning session, with Hong Kong and Japan being from flat to slightly green, but China is gaining +1.7%!
This week, we’ll be watching our market closely to see if it can confirm a double-bottom. On Friday, our major indices tested their support ranges and bounced back. We’ll have to see if they can make some higher highs and higher lows from here.
SPX tested the recent bottom on Friday and bounced back. It is still within its support range of 1440-1460. Let’s see if SPX can make some higher highs and higher lows from here, and thus, confirms the double-bottom.
Over on Wang’s World this weekend, I also discussed some interesting sectors to watch:
This sector got quite a few upgrades last week. It has fallen quite a bit with the broader market (from 190 to 170). But, its weekly chart still shows good strength. It is sitting on its 20-week MA, and the weekly MAs are still in their bullish formation. This sector could go up from here if the market confirms the double-bottom.
SOX held up really well last week, as it kept above 500. Its weekly chart is very strong with the weekly MAs still rising nicely. Semiconductors have a lot of room to go up and I believe they are just getting started on their long-term uptrend.
Resorts and Casinos have been getting quite a bit of attention lately, especially Las Vegas Sands Corp. (NYSE:LVS), and Wynn Resorts Ltd. (NASDAQ:WYNN) which I started focusing on a couple of weeks ago. We made nice profits on both of these recently (see Happy Trades!). Last Friday, these 2 came down quite a bit, which may present good re-entry opportunities. Now, if the casinos are doing well, perhaps the companies that make the gaming machines are profitting too! I’ve added WMS Industries Inc. (NYSE:WMS), Bally Technologies Inc. (NYSE:BYI), and International Game Technology (NYSE:IGT) to Happy’s Watch List. I’ll be doing individual analysis on some of these on the Member Site only!
I’ve also mentioned the “clean tech” companies during the week. And, we took nice profits on SunPower Corporation (NASDAQ:SPWR) (as much as +76%!). On Friday, SPWR, Zoltek Companies Inc. (NASDAQ:ZOLT), and American Superconductor Corp. (NASDAQ:AMSC) came down quite a bit. This could also present good re-entry opportunities. If Chavez keeps on cheering on $100 oil, people have got to be thinking alternative energies!!
As always, please pay attention to the overall market conditions and keep cash! I think we should still be patient and wait for the market to confirm a double-bottom!