Market Forecast + Sector Watch: SPX, Nasdaq, FAS, BTK, XLE, XRT

After struggling for two months in a tight trading range, markets broke out last week.  Just about every sector locked in gains.  Even metals and mining stocks went higher!

For the week, the Dow was up +195.06 points; SPX added +41.52 points; Nasdaq gained +149.44 points.  Gold was basically flat, trading just below $1230/ounce.  Oil got a huge bounce, closing at $53/barrel.  At the time of this writing, Asian markets were mostly up, even though Greece failed to secure an extension on its bailout package.  Here's where the US markets closed on Friday:


On Friday, SPX added +8.51 points to close at 2096.99.  Its daily MAs and MACD moved up.


Nasdaq gained +36.22 points to close at 4893.84.  Its daily MAs and MACD also went up.

Both indices vaulted higher last week.  Even though Greece and the Euro Zone still have not reached an agreement on the bailout package, markets in Asia do not seem to be adversely affected too much.  For the new week, I think US markets will continue to push higher.  Nasdaq will likely test 5,000 soon.  Dow 18,000 could soon be just another mark!  Techs are still strong.  Energy stocks are stabilizing.  Biotechs are holding and retails are strong again!

Sector Watch

FAS (financial)

FAS has popped up to catch its daily upper BB.  It looks like it will test the resistance at $132.5 soon.  I still like GS, but, other big banks look good as well (WFC, JPM, BAC).  STI and PNC are also strong.

BTK (biotech)

BTK rose to close above its daily MAs.  On my radar for this sector are:  CELG, GILD, AMGN, BIIB, VRTX, JAZZ (big jump on Friday), CLVS, and INCY.

XLE (energy)

XLE's daily MAs are now curving up.  DVN and EOG will report this week.  I also like OXY and APA.

XRT (retail)

XRT broke out last week.  NFLX and AMZN keep pushing this group higher.  Traditional retailers are not doing as hot.  However, SHLD did pop on Friday.  DECK has been rebounding.  I'd start watching RL for a bounce.  COST popped a week ago and has pulled back.  It should shoot back up to revisit the recent high.

I'm looking to get more aggressive starting this week.  I think a lot more of the money on the sideline will come in now.

Good night and HappyTrading! ™

Posted to Ecstatic Plays on Feb 16, 2015 — 11:02 PM
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