Contributor Since 2007
Once again, the broader market was kept in a tight range as investors saw little progress on the budget negotiation in Washington. We had a pretty good week, though. We locked in gains on trades as we had them and were not greedy. Although there were no triple-digit gainers (and you shouldn't always expect to get them all the time) most of the closed trades were on the plus side. We found winners on both puts and calls on NFLX. The little breakout on APC gave us a nice +75% profit. Here are the closed trades for the week:
Last weekend, in my Market Forecast, I said,
"For the new week, it's pretty much still all about the "fiscal cliff". Buyers are ready to come in, but, they are cautious not to jump the gun. One solid pop, though, this market could go on a run! We'll need to see Congress to stop the political circus and come together to do what they were elected and paid to do! If Congress does come up with a budget deal, or at least some substantial progress, SPX could test 1440. 1400 now is the immediate support for SPX. If the market still trades sideways, we could see a stock-picking environment."
The forecast was once again on target. The market started the week on a positive note on Monday morning, but, things quick faded. By Wednesday morning, SPX was down to test 1400, as AAPL took sharp drop. Stocks quick bounced and ended the day green. Thursday and Friday saw mild buying as financial and mining stocks climbed higher. Techs, however, were still weak, as AAPL fell to close just above $530 for the week.
For the week, the Dow was up +129.55 points; SPX added +1.89 points; Nasdaq slipped 32.2 points. Gold and oil were little changed with gold at around $1700/ounce and oil at around $86/barrel. At the time of this writing, Asian markets mostly up. Here's where the US markets closed on Friday:
On Friday, SPX added +4.13 points to close at 1418.07. It closed above its daily MAs. The MACD went up.
Nasdaq slipped 11.23 points to close at 2978.04. It closed below its 10-day MA. The MACD was flat.
Things were tightly ranged last week, with weakness in the techs, dragged lower by AAPL. 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 12/9/12.