It's been another wild week. Stocks were very volatile and sold off for most of the week before bouncing on Friday. Even though the bounce on Friday was a solid move, I'm starting to see imminent signs of potential, bigger sell-offs.
We picked up some puts on Monday, and by the end of the week, we went almost completely into cash. Here are the closed trades for the week:
For the week, the Dow was down 56.08 points; SPX fell 9.4 points; Nasdaq lost 86.69 points. Gold was basically flat, trading above $1180/ ounch. Oil got a jump, closing above $59/barrel. At the time of this writing, Asian markets were slightly up. Here's where the US markets closed on Friday:
On Friday, SPX added +22.78 points to close at 2108.29. It barely closed above its daily MAs. The MACD flattened.
Nasdaq gained +63.97 points to close at 5005.39. It closed below its 10-day MA. The MACD went down.
Both SPX and Nasdaq lost grounds last week. If it weren't for the bounce on Friday, things would look even shakier right now. For the new week, more earnings are coming in. This week will be very important for the biotechs as many more will be reporting.
MON: (AM) CMCSA, DO; (PM) APC
TUE: (AM) EOG, VMC; (PM) AGU, FOSL, DVN, GRPN, HLF, JIVE, MYL, MYGN, SCTY, DIS
WED: (AM) DDD, ATHM, CHK, OXY; (PM) CF, CKP, CLVS, CPA, GMCR, RIG, WFM
THUR: (AM) AGIO, APA, CA, PCLN, BABA; (PM) ICPT, JCOM, JAZZ, NWS(A), RENT, DATA, TSO
FRI: (AM) JD
I think we have to be very cautious here. Financials will be very important, once again. Any positive news from EU/Greece should help the financials, at least for a bit. The biotech index has turned bearish, although GILD's earnings helped the sector to bounce on Friday. Internet came down quite a bit after being torpedoed by TWTR and LNKD.
FAS has been tightly bound for a while now. The Bollinger Bands are getting tighter on the daily chart. A break, whether up or down, could be immient. Big banks (GS, JPM, WFC, and BAC) actually look pretty healthy. Regional banks, such as PNC and STI, are not looking so hot.
MOO had a big jump on Friday, after MOS's earnings. CF and AGU are reporting in the coming week. Surprisingly, this could be the strongest sector right now. A lot of times these move with oil. Does this mean that oil is going higher? Earnings from APC, EOG, OXY, and APA could be very interesting this week.
BTK took a plunge last week. The big guys, such as BIIB, CELG, and AMGN, are turning (or have turned) bearish. GILD is an exception, with a healthy pop on Friday. MYL, MYGN, AGIO, JAZZ, ICPT, among others, are reporting in the coming week.
GLD popped higher earlier in the week, but, quickly gave back the gains by the end of the week. GLD has been really volatile, so, I have not been trading this. But, it is good to keep an eye on the movement to get an overall picture of where the money is moving. It looks like GLD is still on track to test that $110!
Good night and HappyTrading! ™