Wang’s Happy Trading

So, the market broke higher last week and caught the daily upper BB (see charts). Nasdaq closed above 2500 and SPX closed just above 1425. VIX kept on sliding and has been riding its daily lower BB lower.

SPX

SPX added +1.78 points to close at 1425.35. It has started to ride its daily upper BB higher. Its daily MAs looked ready to extend their bullish formation. The MACD (difference) just went positive.

Nasdaq

Nasdaq lost 4.88 points to close at 2528.85. The daily MAs and MACD went higher.

Many sectors just broke out last week and started a new leg up (See Sector Watch), and, the major indices reflected the same. For the new week, I think the market is in a good position to continue with its rise. SPX’s next major resistance is at about 1475 and that of the Nasdaq is at about 2600. VIX is getting close to $16, but, it’s got lots of downward momentum on its side. We’ll have to see how it handles that support, but, with its downward momentum, it could go to $14 before finding support, which would be very good for the market. Energy and metal sectors just keep on going higher. Techs just broke out last week and still have lots of room to go higher. Let’s take a look at the sectors in our Sector Watch.

Sector Watch
USO/OIH(oil/oil services)

Last weekend, we looked at USO and I said, “It just keeps on climbing higher along the daily upper BB, and, I don’t think it’s reached a top yet.” On Friday, USO jumped again, as crude closed above $126/barrel! The same energy plays that we looked at last weekend are still going up strong. DVN looks to be ready to break out again!

With oil going up and up, oil services just broke out last week. OIH has caught up with its daily upper BB and looks to have room to go higher. The top 10 holdings of OIH are all doing well. NOV, DO, and RIG look especially good.

XME (metals and mining)

XME broke out above $85 and just kept on going! Steels and coals are still among the favorites. X, CLF, and RTP have been pretty incredible. MTL finally joined in on the breakout on Friday. CNX made gains to catch up with BTU; ACI could be the next one to jump!

GLD (gold)

After 2 months of sliding, GLD seems to be back on its feet. It closed above the daily MAs on Friday. XAU and GDX are some good plays in gold.

MOO (agriculture)

With most sectors running higher, MOO, trading flat for over a week, finally took some part on Friday. It closed above the daily MAs, which seemed to be ready to start a new bullish formation. POT, MOS (I have an open position in this), MON, CF, and BG are among the favorites.

INX2 (Internet)

INX2 pushed open its daily upper BB and could ride it up higher if it breaks 285. After 285, the next resistance is at 295. With MSFT still going after YHOO, this sector could stay pretty popular.

SOX (semiconductors)

SOX broke above 400 last week and continued to ride its daily upper BB higher. INTC and AKAM were very strong.

PBW (clean energy)

PBW broke above $22 last week and has started a new bullish formation with its daily MAs. This sector has a lot of room to climb higher, after being inactive for 3 months. FSLR and CSIQ have already made new all-time highs. SPWR could have a lot of catching up to do. The Chinese solars are also very popular (I have open positions in these); some of the favorites are LDK, JASO, STP, SOLF (+23.66% on Friday), TSL, and YGE.

Hope you’ve had a fun weekend!
Good night and HappyTrading! ™