Last weekend, in my Market Forecast, I was very cautious about the market. On Monday and Tuesday, stocks took a nosedive, sending SPX down to test the 2000 mark. But, on Wednesday and Thursday, things bounced back up. On Wednesday night, I wrote another article, cautioning that the selling may not be over. Indeed, on Friday, market was weak again and SPX fell back to just below 2045, the resistance area that I discussed in last week's Market Forecast.
We traded last week's volatility pretty well. Here are the closed trades:
RL Jan 17 2015 Put 175.0 | 10.0 | $2.45 | $325.00 | 15.29% | 01/09/2015 |
CLVS Jan 17 2015 Call 55.0 | 5.0 | $4.35 | $175.00 | 8.75% | 01/09/2015 |
BIDU Jan 17 2015 Call 225.0 | 5.0 | $7.375 | $1,175.00 | 46.77% | 01/08/2015 |
TSLA Jan 17 2015 Put 205.0 | 5.0 | $3.275 | $-1,912.50 | -53.87% | 01/08/2015 |
BIDU Jan 17 2015 Call 225.0 | 5.0 | $6.625 | $800.00 | 31.84% | 01/08/2015 |
CLVS Jan 17 2015 Call 55.0 | 5.0 | $4.35 | $175.00 | 8.75% | 01/07/2015 |
TSLA Jan 17 2015 Put 205.0 | 5.0 | $4.125 | $-1,487.50 | -41.90% | 01/06/2015 |
FSLR Jan 17 2015 Call 45.0 | 10.0 | $0.335 | $-1,325.00 | -79.82% | 01/06/2015 |
GMCR Jan 17 2015 Put 130.0 | 10.0 | $4.60 | $1,425.00 | 44.88% | 01/06/2015 |
GOOG Jan 17 2015 Put 520.0 | 5.0 | $11.20 | $350.00 | 6.67% | 01/05/2015 |
AMGN Jan 17 2015 Put 160.0 | 10.0 | $5.40 | $1,950.00 | 56.52% | 01/05/2015 |
BITA Jan 17 2015 Call 75.0 | 10.0 | $5.25 | $950.00 | 22.09% | 01/05/2015 |
We got out of BITA calls a few days early. AMGN puts gave us a nice +56.5% return. GMCR puts rendered a solid gain. BIDU calls also worked well.
For the week, the Dow was down 95.62 points; SPX lost 13.39 points; Nasdaq fell 22.74 points. Gold had a good week, rising to about $1220/ounce. Oil fell again, with WTI trading just above $48/barrel. At the time of this writing, Asian markets were mixed. Let's take a closer look at the US markets:
SPX
SPX fell 17.33 points to close at 244.81. Its daily MAs bunched up. The MACD was slightly higher.
Nasdaq
Nasdaq fell 32.12 points to close at 4704.06. Its daily MAs also closed in on one another.
Both SPX and Nasdaq closed at where their respective daily MAs seemed to be converging. Their respective MACDs were still in the bearish area, although they were flattening. For the new week...
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