Weekly Wrap-Up + Market Forecast + Sector Watch: SPX, Nasdaq, FAS, XLE, IGV, FDN

It was a volatile week last week, as markets followed the news coming out of Greece and Europe on the Greek bailout/debt negotiations. Things were range-bound for the first three trading days, but, took a drop on Thursday when news came out that Greece will bundle its payments to the end of June instead of paying the first installment of 300 million Euros. Friday was met with an initial drop, but, things recovered a bit to close the day.

We had a pretty good week. Other than a couple of trades, most of trades did well, and our portfolio value stayed at its all-time high. Our GMCR puts and VIX calls did well. GOOG and QIHU calls also gave us some nice quick profits. Here are the closed trades for the week:

For the week, the Dow was down 161.22 points; SPX fell 14.56 points; Nasdaq slid 1.57 points. Gold took a drop, falling to below $1170/ounce. Oil was basically flat. At the time of this writing, Asian markets were mixed. Here are where the US markets stood after Friday's close:


On Friday, SPX fell 3.01 points to close at 2092.83. Its 10-day MA curved down. The MACD also went lower.


Nasdaq added +9.33 points to close at 5068.5. It closed below its 10-day MA. Its MACD also went down.

Both market indices are looking vulnerable. SPX closed below its daily MAs. While Nasdaq closed just below its 10-day MA, its MACD went lower. For the new week, the world will continue to watch as negotiations continue between Greece and EU. Chinese stocks will also be in focus as on Tuesday, MSCI will decide whether to add them to its indexes. Major sectors in the US are mostly neutral. But, technically speaking, they are becoming more vulnerable as the the major market indices show.

Sector Watch

FAS (financial)

FAS is still keeping things neutral. But, the 10-day MA has turned lower. GS has been strong. But, WFC and JPM are staying neutral with weakness. BLK is quite weak.

XLE (energy)

Energy stocks staged a small rally on Friday. EOG, OXY, HES, and APC all went up. RIG and DO also bounced. Let's see how these do in the coming week.

FDN (internet)

FDN managed to close above its daily MAs. GOOG, AMZN, FB are staying neutral. NFLX was strong on Friday, as its expansion into Europe took place.

IGV (software)

IGV's 10-day MA also turned down, although it managed to stay just above its daily MAs. AAPL's WWDC starts next week. It will surely highlight the difference between iOS and Android. I wonder what other software companies may benefit by this. But, it AAPL is strong, it could lift the whole tech sector. Will there be more speculations for M&A in the software sector? CRM was a target; is it still? SNCR is rumored to be in conversation to be acquired by private equity. Will we start to see M&A in the cloud space? Will IBM or AMZN come in to play?

Good night and HappyTrading! ™

Posted to Ecstatic Plays on Jun 07, 2015 — 1:06 AM
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