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Weekly Wrap + Market Forecast + Sector Watch: SPX, Nasdaq, XLF, GLD, USO, XME, MEE, BTU, WLT, CNX, ACI, PCX, AKS, GS, BAC

|Includes: AKS, ARCH, BAC, BTU, CNX, GLD, GS, MEE, PCXCQ, USO, WLT, Financial Select Sector SPDR ETF (XLF), XME

Last weekend, in my Market Forecast, I wrote:

"For the new week, the market certainly has room to rise.  But, it'll have to break above SPX 1120 to go higher.  The market is very "emotional" right now, and, the weekly jobless claims reports seem to keep the market on its toes.  (What they really should do is to change the jobless claims reports to at least bi-weekly.  A bi-weekly average may actually be more accurate and get rid of some "noises" in the numbers.  Further, it may help to calm the nerves of the financials markets.)  The dollar has risen quite far since its recent low in early December.  It is starting to waver at a 7-month high.  If the dollar pulls back, commodity sectors should bounce a bit more.  Both oil and gold seem to be ready to go higher.  We may see a strong opening for the week; but, if SPX 1120 cannot be broken, we are still range-bound.  Techs look stronger than the broader market and should do well in a bullish environment."

In the Sector Watch, I also added,

"...XLF showed a lot of strength.  The $15 level is the next resistance.  Breaking above $15 would be quite a feat."

The market did indeed open the week on a strong note on M&A deals.  For the next three days, the market traded in a tight range, with various sectors taking turns to keep the market's altitude.  On Tuesday, miners rallied as gold pushed higher, along with more acquisition news in the fertilizer producers.  On Wednesday, the market continued to struggle with SPX 1120.  However, techs kept the Nasdaq in the green.  On Thursday, the market managed to close above SPX 1120 just ahead of the jobs report.  Wouldn't you know it, on Friday, the jobs report came in "less badly" than many economists had expected.  Since SPX was already above 1120, the whole market rallied higher!  Financials really had a strong week and helped carry to market.  XLF closed above $15.  Techs kept its pace ahead of the broader market, with Nasdaq gaining back all of its recent loss in January and February.

We also had a decent week, with 100% of the the closed trades in the green:
March 04, 2010
09:32 | HappyTrading GS ($162.70) Sold to Close 03C160 Mar 160 calls, at $5.00 +11%
06:53 | HappyTrading GOOG ($551.20) Sold to Close 03C550 Mar 550 calls, at $9.00 +43%

March 03, 2010
07:56 | HappyTrading HGSI ($31.25) Sold to Close 04C29 Apr 29 calls, at $3.30 +50%

March 02, 2010
07:22 | HappyTrading HGSI ($30.70) Sold to Close 04C29 Apr 29 calls, at $3.00 +36%

March 01, 2010
12:41 | HappyTrading GOLD ($74.20) Sold to Close 03C70 Mar 70 calls, at $5.11 +31%
12:13 | HappyTrading AMZN ($124.05) Sold to Close 03C120 Mar 120 calls, at $6.15 +32%
09:48 | HappyTrading AMZN ($122.20) Sold to Close 03C120 Mar 120 calls, at $4.75 +2%
07:26 | HappyTrading GLD ($109.30) Sold to Close 03C108 Mar 108 calls, at $2.65 +28%

For the week, the Dow was up +240.94 points; SPX added +34.21 points; Nasdaq gained +88.09.  Both gold and oil went higher.  This evening, at the time of this writing, Asian markets were following the US higher.  Let's see how the US market looks after Friday's close:

SPX

SPX added +15.73 points to close at 1138.70.  It closed above the 1130 level.  Its daily MAs and MACD went higher.

Nasdaq

Nasdaq gained +34.04 points to close at 2326.35, above the 2300 level.  Its daily MAs and MACD were up.

SPX finally went back above the 1120 level.  VIX closed below 18.  Nasdaq did even better, achieving a new closing high for 2010!  For the new week...

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Disclosure: positions: none