Happy Chinese New Year!恭禧發財 龍年行大運!
(Gong Xi Fa Cai; May your Year of the Dragon be filled with good fortunes!)
Last weekend, in my Market Forecast, I said,
"For the new week, earnings season is getting started. Many financial firms will report their earnings, including GS, MS, BAC, WFC, and BLK. Some tech belweathers come in on Thursday, including IBM, INTC, and GOOG. Earnings from the financials early in the week could set a tone for the broader market. Breaking above SPX 1300 would be a strong signal."
Monday was MLK Day and a market holiday. On Tuesday, the market gapped up on encouraging economic data from China. However, the market struggled to keep above SPX 1300. Strong earnings from the semiconductor sector on Wednesday and Thursday finally pushed the market to rally higher. We captured some really nice trades, including a +105% profit on RVBD and a +147% gain on NFLX. The market was basically flat on Friday as GOOG's earnings miss drew some caution and profit-taking.
For the week, the Dow was up +299.42 points; SPX added +26.29 points; Nasdaq gained +76.03 points. Gold climbed back up to nearly $1670/ounce. Oil, on the other hand, remained weak, and closed just above $98/barrel. Many of the Asian markets are closed to start the week for the Lunar New Year. Let's take a look at where the US market stood after Friday's close:
On Friday, SPX was up +0.88 point to lcose at 1315.38. Its daily MAs and MACd glided up.
Nasdaq slid 1.63 points to close at 2786.7. Its daily MAs and MACD were slightly higher.
This market has been glided higher since this year's first trading day on 1/3/2012. VIX barely closed above 18 on Friday! For the new week...
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