Last weekend, in my Market Forecast, I wrote:
"For the new week, the market starts at a neutral position as the market consolidated on Friday. But, stocks may slip as the buying momentum wanes. Before the sharp drop, people were looking for a pullback. The pullback was so sharp that it brought most sectors into the correction territory in just a few days! Thus, the sharp bounce is warranted. Now, that the bounce has taken out the downside overshoot, we may see stocks slip again."
Indeed, the buying faded. Besides the bounce on Wednesday, there was not much buying. Tuesday brought a quick drop, sending the market down to test 1900. After Wednesday's bounce, selling resume on Thursday afternoon, and lingered into Friday.
We had a pretty good week keeping the Ecstatic Plays Portfolio near its all-time high, especially considering how volatile the markets were. Here are the closed trades for the week, which we had already highlighted some trades earlier (Click here to see the previous article):
For the week, the Dow was down 540.63 points; SPX fell 67.65 points; Nasdaq lost 144.4 points. Oil had a strong opening on Monday, but, pulled back throughout the week. Still, it managed to close higher for the week, at around $45/barrel (WTI). Gold slid down to about $1120/ounce. Asian markets were mostly lower on Monday, as the US markets were closed in observance of Labor Day. Tonight, at the time of this writing, Asian markets were mixed. Let's see how the US markets closed on Friday:
On Friday, SPX fell 29.91 points to close at 1921.22. It closed below its daily MAs. The MACD slid.
Nasdaq lost 49.58 points to close at 4683.92. It closed just below its 10-day MA.The MACD was slightly down.Both SPX and Nasdaq closed below their respective daily MAs. For the new week...
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