Weekly Wrap-Up + Market Forecast + Sector Watch: SPX, Nasdaq, FAS, FDN, MOO, GLD

It was a very volatile week! Markets sold off to start the week, but, rallied back to record territory to end the week! It was truly amazing! We have been staying mostly in cash, because it looked like stocks were heading for a pullback. They did pull back. But, once again buyers drove them higher!

We had a nice week and our portfolio is back at all-time high again! Our puts on POST scored a +112% profit. Here are the closed trades for the week:

For the week, the Dow was up +81.45 points; SPX added +6.63 points; Nasdaq gained +44.74 points. Gold had a huge week, rocketing up to above $1225/ounce. Oil (WTI) traded slightly higher, closing just below $60/barrel. At the time of this writing, Asian markets were mixed. Here's how the US markets closed on Friday:


SPX added +1.63 points to close at 2122.73. Its daily MAs and MACD turned up.


Nasdaq slipped 2.5 points to close at 5048.29. Its daily MAs and MACD also crept higher.

On Tuesday morning last week, it really looked like the markets were about to pull back further. But, one hour into the trading, buyers came in and started driving things back up. It was as surprising as it was amazing! For the new week, things are a bit messy, but, it looks like the broader market wants to push higher. Earnings are down to a trickle. But, still lots of retail companies are reporting, including BBY, DLTR, GPS, ROST, TJX, and WMT! In the tech sectors, ADSK reports on Tuesday; CRM is reporting on Wednesday; and, INTU will report on Thursday.

The buying last week has been surprisingly strong. Are new money coming off of the sidelines? One sector that has been dormant for a couple of years seems to be breaking out: Agriculture. On Friday, both MOS and POT jumped. The ongoing merger action between MON and SYT has drawn speculators back into this sector.

Financials stay as a focused sector as Greece and EU haven't really solved their problems yet. Internets are mixed. Recent earnings have not be great. But, big buyers are going into FB. NFLX's entry into China really popped the stock on Friday.

Gold, all of a sudden, has turned bullish. Although it can be very volatile, we don't want to miss a potential run.

Sector Watch

GLD (gold)

GLD closed just above the resistance at $117. Its daily MAs and MACD have both turned up. Is GLD going on a quick run back up to $125?? I think we will see the verdict by mid-week! The dollar seems to be sliding. This also brings up a secondary question: if the dollar keeps sliding, is oil going higher? Therefore, we will also continue to watch the energy stocks, even though they do not look too appetizing right now.

FAS (financial)

FAS has been very volatile. Although the chart looks bullish, news from Greece/EU will likely incite more volatility. I'm surprised by how low the volumes are on FAS's options. I think we will be better off trading individual stocks.

FDN (internet)

FDN is neutral right now. TWTR and LNKD seem to be stuck, although a bounce might render some nice trades. YHOO looks pretty good. AMZN may need more time to consolidate. GOOG could be ready for a bounce. FB is being bought.

MOO (agriculture)

Just look at that chart. MOO is breaking out in a big way!! MOS, POT, AGU, CF, MON, SYT are all looking up!

Good night and HappyTrading! ™

Posted to Ecstatic Plays on May 17, 2015 — 1:05 AM
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