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Weekly Wrap + Market Forecast + Sector Watch: SPX, Nasdaq, GLD, USO, FDN, MOO, AMZN, GOOG, PCLN, NFLX, AAPL, POT, AGU, CF, MOS


The market was quite strong last week.  It was on its way to a new breakout until Friday's disappointing jobs report.  Still, most sectors managed to keep some gains for the week.

Last weekend, in my Market Forecast, I wrote:

"For the new week, the market can use some consolidation to start the week.  SPX now has support between 1330 and 1320, while Nasdaq has support at 2775.  The daily MAs have already turned up.  We have the lastest jobs report at the end of the week; also, ADP report and ISM services on Wednesday could move the market.  Breaking above SPX 1350, the market should turn bullish again."

The market did indeed consolidate to start the week, trading sideways on Tuesday and Wednesday.  ADP report came in on Thursday morning and was much stronger than expected.  Stocks jumped with techs leading the way.  However, on Friday, nonfarm payroll numbers were much lower than estimated, market pulled back as the conflicting data prompted profit-taking, finally.

We didn't trade too much and had closed trades mostly on the profit side.  We even picked off some quick downside plays:
08:56 | HappyTrading FFIV ($119.30) Sold to Close 07C115 Jul 115 calls, at $5.50 +150%
06:44 | HappyTrading RIMM ($27.57) Sold to Close 07P29 Jul 29 puts, at $1.75 +16%
12:11 | HappyTrading VECO ($43.60) Sold to Close 07P45 Jul 45 puts, at $2.10 +40%
07:28 | HappyTrading FFIV ($116.00) Sold to Close 07C115 Jul 115 calls, at $3.50 +59%
07:27 | HappyTrading OVTI ($32.70) Sold to Close 07C35 Jul 35 calls, at $0.30 -66%
11:25 | HappyTrading OPEN ($87.90) Sold to Close 07C85 Jul 85 calls, at $4.80 +50%

For the week, the Dow was up +74.43 points; SPX added +4.13 points; Nasdaq gained +43.78 points.  Oil popped back above $95/barrel while gold had a strong week, ending above $1540/ounce.  At the time of this writing, Asian markets were mostly lower.  Let's take a look at the US market:


On Friday, SPX lost 9.42 points to close at 1343.8.  Its daily MAs and MACD went up.


Nasdaq fell 12.85 points to close at 2859.81.  The daily MAs and MACD also went higher.

Both SPX and Nasdaq ended the week below their respective resistance levels.  For the new week...

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