The market turned in a good performance this week. Much thanks to the ECB! The market took a sharp drop on Monday and almost broke down on Wednesday, after an earnings miss from AAPL! Then, new commitment from the ECB gave global markets a shot in the arm! Things quickly turned around, sending shorts running for cover (pun intended)!
We saw the turn around on Thursday and started closing out our positions on the short side and adding positions on the longs. When Friday rolled around, we were in place to just watch the show! Earlier in the week, we scored winning downside trades on CME (+60%) and BTU (+125%). We got out of AAPL calls with a +60% gain just before its earnings report. On Friday, we took our profits on GOOG +202% (an overnight triple!) and NOV +84%. PCLN popped more than $55 on Friday and saw some huge gains in its weekly calls (see Trading Room)! Here are the closed trades for the week:
- 12:52 | Ecstatic Plays CAT ($86.45) Sold to Close 08C82.5 Aug 86 calls, at $4.85 +47%
- 12:44 | Ecstatic Plays GOOG ($634.00) Sold to Close 0803C630 Aug 630 calls, at $9.60 +30%
- 11:09 | HappyTrading NOV ($73.80) Sold to Close 08C70 Aug 70 calls, at $4.60 +84%
- 10:49 | Ecstatic Plays GOOG ($631.00) Sold to Close 0803C620 Aug 620 calls, at $14.00 +180%
- 10:47 | Ecstatic Plays CAT ($86.30) Sold to Close 08C82.5 Aug 83 calls, at $4.65 +41%
- 10:40 | Ecstatic Plays GOOG ($632.60) Sold to Close 0803C620 Aug 620 calls, at $15.10 +202%
- 09:40 | Ecstatic Plays GOOG ($627.75) Sold to Close 0803C620 Aug 620 calls, at $11.60 +132%
- 07:35 | HappyTrading NOV ($72.90) Sold to Close 08C70 Aug 70 calls, at $4.00 +60%
- 07:18 | HappyTrading LULU ($58.40) Sold to Close 08P55 Aug 55 put, at $1.35 -39%
- 07:13 | HappyTrading FDX ($89.10) Sold to Close 08P87.5 Aug 88 put, at $1.30 -42%
- 10:15 | HappyTrading V ($121.90) Sold to Close 08P120 Aug 120 calls, at $2.70 +8%
- 08:33 | HappyTrading BTU ($19.10) Sold to Close 08P21 Aug 21 put, at $2.45 +121%
- 08:09 | HappyTrading BTU ($19.00) Sold to Close 08P21 Aug 21 put, at $2.50 +125%
- 07:03 | Ecstatic Plays QCOM ($57.30) Sold to Close 08C55 Aug 55 calls, at $3.05 +13%
- 07:50 | Ecstatic Plays AAPL ($606.30) Sold to Close 0727C620 Jul 620 calls, at $9.35 +56%
- 11:53 | Ecstatic Plays AAPL ($604.20) Sold to Close 0727C620 Jul 620 calls, at $9.60 +60%
- 08:54 | HappyTrading CME ($50.58) Sold to Close 08P50 Aug 50 put, at $1.30 +38%
- 07:32 | HappyTrading CME ($50.30) Sold to Close 08P50 Aug 50 put, at $1.50 +60%
With the rally from Thursday and Friday, the US market could be on the verge of a "super" rally. A lot of money has been sitting on the sideline, as financial problems in Europe hovered above like a big patch of dark cloud. If we do indeed get a clear solution from ECB next week, a lot of money will pour into the US stocks.
I'll be back tomorrow and in my weekly Market Forecast, we'll look at some exciting, bullish developments in various top sectors. We also discuss the stocks and levels to watch for the breakout into the super rally!
Good night and HappyTrading! ™