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A Grand Week For Stocks

|Includes: Goldman Sachs Group Inc. (GS), WYNN

A super turnaround this week as the bulls took charge when the 1040 level held once again.  This area, an old support/resistance area from earlier this year was tested three times, but that was the charm.  Late Tuesday in trading we saw some big buy orders coming through, the last 10 minutes in fact...vaulting the markets up the next day.  Oh sure, someone knew something...ISM, Aussie GDP, Chinese PMI...the fact is YOU needed to recognize it and jump on it.  I see support now in the 1060-1065 region.  Seems sentiment got  bit too bearish of late, and let's not forget in a pre-holiday week we tend to see less volume and less resitance to spelling pressure.  Of course, big traders return next Tuesday, so we'll see how the market feels being up in the 1100 area again. 

Many groups saw good action this week including commodities, financials and tech.  Gold hit right near an alltime high and sits now just under 1250.  I like gold here for a move to 1325 or so by year end.  The dollar still hovers around 83 and may be coiling here for a move up.  The economy, which many had thought double dip, may not face that horrible fate afterall.  We'll be playing it cautiously of course,  but there seem to be good opportunities on both sides of the trade.

I believe we'll see some heavier action next week, potential target for the SPX is 1120 or so before we may see a pullback.  The IWM broke 640 and may see some resistance at 650 or so, while bonds were smacked hard on the better than expected jobs report, yields could continue to rise up to 3% on the 10 yr.

Have a great long weekend!  Couple of charts below on one we bought Friday (NYSE:GS) and one we hold currently (NASDAQ:WYNN).

Bagger



by Bagger Vance