Markets climbed higher yet again last week, with both SPX and the Dow making new all-time highs. Last weekend, in my Market Forecast, I wrote:
"For the new week, it does seem like buyers are still trickling in. But, there's definitely caution on the market, as stocks have risen quite far in a month."
The broader market was stuck in a tight trading range, but, glided higher nevertheless. We had a mixed week. Here are the closed trades for the week:
|LNKD Options Sell to close 5.00 (1.19%) of LNKD Nov 22 2014 Call 232.5 at 5.00000||2.04% ($50.00) Profit|
|SWKS Options Sell to close 10.00 (0.84%) of SWKS Nov 22 2014 Call 62.0 at 1.75000||29.63% ($400.00) Profit|
|SWKS Options Sell to close 10.00 (0.82%) of SWKS Nov 22 2014 Call 62.0 at 1.70000||25.93% ($350.00) Profit|
|AMZN Options Sell to close 5.00 (1.98%) of AMZN Nov 22 2014 Call 325.0 at 8.35000||32.54% ($1,025.00) Profit|
|FEYE Options Sell to close 10.00 (0.38%) of FEYE Nov 22 2014 Call 33.0 at 0.80000||-70.91% ($-1,950.00) Loss|
|NOV Options Sell to close 10.00 (0.29%) of NOV Nov 22 2014 Call 73.0 at 0.60000||-72.11% ($-1,551.67) Loss|
|NFLX Options Sell to close 5.00 (1.37%) of NFLX Nov 22 2014 Put 380.0 at 5.75000||-25.32% ($-975.00) Loss|
|GILD Options Sell to close 10.00 (2.35%) of GILD Nov 22 2014 Put 105.0 at 5.00000||87.27% ($2,330.00) Profit|
|FAS Options Sell to close 10.00 (0.62%) of FAS Nov 14 2014 Put 119.0 at 1.30000||-49.22% ($-1,260.00) Loss|
|V Options Sell to close 10.00 (0.22%) of V Nov 14 2014 Put 247.5 at 0.45000||-68.86% ($-950.00) Loss|
|NOV Options Sell to close 10.00 (0.58%) of NOV Nov 22 2014 Call 73.0 at 1.20000||-43.4% ($-920.00) Loss|
|MLNX Options Sell to close 8.00 (0.31%) of MLNX Nov 22 2014 Call 45.0 at 0.80000||-55.5% ($-1000.00) Loss|
|QIHU Options Sell to close 10.00 (1.19%) of QIHU Nov 22 2014 Call 72.5 at 2.50000||-28.6% ($-1000.00) Loss|
|NOV Options Sell to close 10.00 (1.12%) of NOV Nov 22 2014 Call 73.0 at 2.40000||13.3% ($380) Profit|
For the week, the Dow was up +60.81 points; SPX added +7.9 points; Nasdaq gained +56.01 points. Oil continued to sinking, trading down to $75-and-change/barrel. Gold had a big bounce trading above $1186/ounce. At the time of this writing, Asian markets were mostly lower, on the news that Japan had slipped into recession in the third quarter. Here's where the US markets closed on Friday:
On Friday, SPX added +0.49 point to close at 2039.82. Its daily MAs were little changed The MACD slid.
Nasdaq gained +8.4 points to close at 4688.54. Its daily MAs and MACD were little changed.
Both SPX and Nasdaq held up above their respective daily MAs. But, SPX looks tired. For the new week, I think the market is ready for a little pullback, at least to start the week. However, I think it will still be a mixed market. There are still buyers looking to get in. For SPX, we should see some support near 2020. For Nasdaq, the support is between 4610 and 4600. Financials seems overdue for a pullback. However, internet stocks still look strong with room to go higher. Energies will be very important. Gold could be on a strong bounce. Fed minutes are due on Wednesday and the latest housing data will also be reported.
FAS closed below its 10-day MA. GS, BAC, WFC, and JPM are already looking vulnerable. MA has pulled back as well. I may have been early on V puts, and will be looking again in the new week.
GLD rose sharply on Friday, touching its 20-day MA. With G20 vouching to create more stimuli to boost the global economic growth, gold may continue to bounce next week.
FDN still looks very strong. If the broader market pulls back, we may see a tight range in this sector. AMZN and PCLN have bounced quite far and may see some pullbacks. On the other hand, TWTR, FB, and YELP were weak after their respective earnings; but, may see some buyers.
XLE is desperately trying to draw a bottom. The potential HAL/BHI deal temporarily stopped the bleeding last week. XLE closed right at its 10-day MA. If it rises above, XLE will turn bullish. I will be watching EOG, APC, APA, NOV, MPC, and OXY.
Good night and HappyTrading! ™