Last weekend, in my Market Forecast, I said:
"For the new week, the market should be looking for a bounce after the quick fall for the past 2 weeks. The above mentioned levels should be the first resistances. We could see some volatile trading to start the week. If the market cannot break SPX 1040, we should see more selling before the end of the week. Energy sectors have been really weak and should see some upsdies if the market bounces."
Monday was a holiday. On Tuesday, the market gapped up to test SPX 1040, but failed; it sank back down in the afternoon. However, it tried again on Wednesday. Around noon, the market broke through SPX 1040 and excelerated higher until the close. On Thursday, the market displayed some hesitance in the morning and pushed higher in the afternoon. On Friday, the market continued higher and finished a very strong week.
This market has been turning directions fast in the recent weeks, and the environment has been volatile. We didn't trade much this week and had some mixed results trading on both sides. Here are the closed trades:
July 09, 2010
12:26 | HappyTrading RIMM ($53.65) Sold to Close 07C50 Jul 50 calls, at $3.85 +57%
11:44 | HappyTrading RIMM ($53.35) Sold to Close 07C50 Jul 50 calls, at $3.60 +47%
09:01 | HappyTrading RIMM ($52.90) Sold to Close 07C50 Jul 50 calls, at $3.25 +33%
06:42 | HappyTrading GS ($135.80) Sold to Close 07P135 Jul 135 put, at $2.00 -38%
July 08, 2010
06:37 | HappyTrading BIDU ($73.60) Sold to Close 07C70 Jul 70 calls, at $4.60 +33%
July 07, 2010
11:23 | HappyTrading MA ($205.40) Sold to Close 07P200 Jul 200 put, at $2.50 -43%
10:49 | HappyTrading AAPL ($255.40) Sold to Close 07P240 Jul 240 put, at $1.40 -68%
For the week, the Dow was up +511.55 points; SPX added +55.38 points: Nasdaq jumped +104.66 points. Oil was up over $75/barrel. Gold was weak, but, did come back up to close above $1200/ounce. At the time of this writing, Asian market were mostly higher. Let's take a look at how the US market looks after Friday's close:
The market bounced fast this week. SPX closed just above its daily MAs, but, still below the 1080 level. Nasdaq closed below the 2200 level. VIX slid back down to just below 25. For the new week...
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