Stocks had a strong week last week, bouncing back to close near 1965, from last week's close of below 1890, an impressive feat! Besides a stutter on Wednesday, all three major market indices made advances on four of last week's five trading days.
We had a mixed week last week. Our TSLA trades did not work out and we cut the losses. However, BRCM calls did bring us a handsome +285% profit! Here are the closed trades for last week:
|BABA Options Sell to close 10.00 (1.75%) of BABA Oct 31 2014 Call 95.0 at 3.40000||36.00% ($900.00) Profit|
|FSLR Options Sell to close 10.00 (2.37%) of FSLR Nov 22 2014 Call 55.0 at 4.60000||11.92% ($490.00) Profit|
|TSLA Options Sell to close 5.00 (0.32%) of TSLA Oct 24 2014 Put 230.0 at 1.20000||-82.86% ($-2,900.00) Loss|
|FAS Options Sell to close 10.00 (0.34%) of FAS Oct 24 2014 Put 99.0 at 0.65000||-56.67% ($-850.00) Loss|
|MLNX Options Sell to close 5.00 (0.98%) of MLNX Nov 22 2014 Call 45.0 at 3.80000||-7.32% ($-150.00) Loss|
|APA Options Sell to close 10.00 (1.41%) of APA Nov 22 2014 Call 75.0 at 2.75000||19.57% ($450.00) Profit|
|TSLA Options Sell to close 5.00 (1.49%) of TSLA Oct 24 2014 Call 230.0 at 5.80000||-22.67% ($-850.00) Loss|
|BRCM Options Sell to close 10.00 (1.74%) of BRCM Oct 24 2014 Call 37.0 at 3.35000||285.06% ($2,480.00) Profit|
|TSLA Options Sell to close 5.00 (0.64%) of TSLA Oct 24 2014 Put 230.0 at 2.44000||-65.14% ($-2,280.00) Loss|
|MLNX Options Sell to close 5.00 (1.46%) of MLNX Nov 22 2014 Call 43.0 at 5.60000||55.56% ($1,000.00) Profit|
|TSLA Options Sell to close 5.00 (1.64%) of TSLA Oct 24 2014 Call 230.0 at 6.30000||-16.00% ($-600.00) Loss|
|MLNX Options Sell to close 5.00 (1.18%) of MLNX Nov 22 2014 Call 43.0 at 4.50000||25.00% ($450.00) Profit|
|SFLY Options Sell to close 30.00 (0.00%) of SFLY Oct 18 2014 Call 50.0 at 0.00000||EXPIRED|
|ACOR Options Sell to close 30.00 (0.00%) of ACOR Oct 18 2014 Call 35.0 at 0.00000||EXPIRED|
|ILMN Options Sell to close 10.00 (0.00%) of ILMN Oct 18 2014 Call 180.0 at 0.00000||EXPIRED|
For the week, the Dow was up +425 points: SPX added +77.82 points; Nasdaq gained +225.82 points. Gold pulled back to below $1230/ounce, while oil sank to below $81/barrel. At the time of this writing, Asian markets were mixed, with Shanghai and Hong Kong falling. Here are how the US markets closed on Friday:
On Friday, SPX added +13.76 points to close at 1964.58. It closed above its daily MAs. The MACD went up.
Nasdaq gained +30.92 points to close at 4483.72. Its 10-day MA turned up.
Both SPX and Nasdaq managed to close above their respective daily MAs. For the new week, more earnings reports will roll in:
Monday: (AM) AGN, MRK, STX; (PM) AMGN, BWLD, CLF, CROX, VRTS, TWTR, LMNX
Tuesday: (AM) FLWS, AET, AIXG, BP, COH, GLW, FCX, PCG, SHW, SIRI, WHR; (PM) APC, FB, GILD, MCK, X, VRTX, WYNN, WDC
Wednesday: (AM) LNG, GRMN, HES, PSX, WLP; (PM) AEM, AKAM, BIDU, CRUS, DWA, EQIX, FFIV, NE, SFLY, MET, TRLA, VECO
Thursday: (AM) CME, K, LLL, MA, RGLD, TASR, WLT; (PM) EXPE, FLR, GPRO, MELI, OUTR, PSA, SBUX, WPRT, LNKD
Friday: (AM) CVX, XOM
I'm still cautious about this market. Things have come back up so strongly. I wonder how much higher this market can go. For SPX, there's resistance above 1980. If things come down, we may test 1910-1900. If the market stays above 1950, we may see a range-bound environment. Biotechs have been so hot, sending the biotech index to new all-time high. Overall, financials and the broader market seem to be coupled. Big earnings from the energy sector this week, especially on Friday with CVX and XOM. TWTR and FB will be interesting for the internets.
BTK bounced sharply from the recent pullback and once again created a new all-time high! AGN and AMGN are reporting on Monday. GILD follows on Tuesday.
FAS and SPX seem to be coupled right now. Big banks have reported, so, there may not be much incentive to push this sector higher. We do, however, have MA reporting on Thursday morning.
XLE closed just above its 20-day MA. It still looks weak. APC, HES, NE, FLR, XOM, and CVX are all reporting next week.
FDN did not bounce as much as the broader market. It closed below its 30-day MA. TWTR will report on Monday, followed by FB on Tuesday. LNKD and EXPE report on Thursday.
Good night and HappyTrading! ™