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

We came into last week sitting on mostly cash, expecting a pullback.  On Tuesday and Wednesday, we got that pullback.  But, buyers came in on Thursday, and Friday saw a strong rally after an encouraging jobs report!

Except for a couple of trades, we had a very nice week.  TSLA and YELP calls gave us nice profits on the long side, and, GOOG puts earlier in the week did well for us on the down side.  Here are the closed trades for the week:

For the week, the Dow did surprisingly well, and ended up +167.05 points.  But, for SPX and Nasdaq, because the fall was so sharp earlier in the week, the two indices barely recovered. SPX added +7.81 points; Nasdaq still ended down 1.84 points.  Gold and oil were basically flat.  At the time of this writing, Asian markets were mostly higher, after China once again slashed its interest rates.  Let's see how the US markets closed on Friday:


On Friday, SPX added +28.1 points to close at 2116.1.  Its daily MAs were flat.  The MACD moved higher.


Nasdaq gained +58 points to close at 5003.55.  Its daily MAs and MACD flattened.

SPX closed the week in a healthy spot.  However, Nasdaq looks much weaker, neutral at best.  For the new week, we have a few notable earnings.  But, the most important one is perhaps on Wednesday afternoon with CSCO.  JACK and SHAK may also be interesting.  I will also watch RAX's report on Monday afternoon.  SINA and WB are reporting on Thursday afternoon.

The development with Greece and EU will be carefully watched.  Financials will be interesting.  Energies will probably be stuck.  Oil has risen quite a bit and may need to consolidate.  I will be watching tech sectors next week, as Nasdaq came down fast and is in a neutral spot.

SPX has resistance at 2120, support at 2090.  Nasdaq has resistance at 5050 and support at 4950.

Sector Watch

FAS (financial)

FAS broke out higher on Friday.  Pretty amazing.  WFC and JPM have broken out.  GS is on the springboard.  It may be time to look at PNC and STI again.

XLE (energy)

XLE closed at a neutral point.  EOG, APA, APC, and OXY are all weak.  We could see further weakness from this sector.

IGV (software)

IGV closed higher last week.  DATA and CYBR certainly helped.  MSFT pulled back from its recent climb.  ADBE and ORCL are neutral.

FDN (internet)

FDN barely closed above its daily MAs.  PCLN dropped sharply after earnings.  GOOG(L) has been struggling.  NFLX and AMZN are holding.  LNKD is still weak.

Since energies are unlikely to rally right now, and techs have been weak, financials were the leaders in Thursday and Friday's rally.  We will have to see if techs can hold their grounds next week, or else, the market could be shaky again.  We may see the upside momentum carry into Monday, but, we'll have to see if the buying can hold throughout the week.  CSCO's earnings will be very important on Wednesday.  Of course, development in Greece/EU will also be closely monitored.

Good night and HappyTrading! ™

Posted to Ecstatic Plays on May 11, 2015 — 1:05 AM
Comments ({[comments.length]})
Sort By:
Loading Comments
No comments. Break the ice and be the first!
Error loading comments Click here to retry
No comments found matching this filter
Want to add a comment? Take me to the new comment box!