Weekly Wrap-Up + Market Forecast + Sector Watch: SPX, Nasdaq, BTK, FAS, XLE, FDN

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:

SPX


On Friday, SPX added +13.76 points to close at 1964.58.  It closed above its daily MAs.  The MACD went up.

Nasdaq


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.

Sector Watch

BTK (biotech)


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 (financials)

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 (energy)

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 (internet)

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! ™

Posted to Ecstatic Plays on Oct 26, 2014 — 9:10 PM
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