The market turned in a good performance this week. Much thanks to the ECB! The market took a sharp drop on Monday and almost broke down on Wednesday, after an earnings miss from AAPL! Then, new commitment from the ECB gave global markets a shot in the arm! Things quickly turned around, sending shorts running for cover (pun intended)!
We saw the turn around on Thursday and started closing out our positions on the short side and adding positions on the longs. When Friday rolled around, we were in place to just watch the show! Earlier in the week, we scored winning downside trades on CME (+60%) and BTU (+125%). We got out of AAPL calls with a +60% gain just before its earnings report. On Friday, we took our profits on GOOG +202% (an overnight triple!) and NOV +84%. PCLN popped more than $55 on Friday and saw some huge gains in its weekly calls (see Trading Room)! Here are the closed trades for the week:
With the rally from Thursday and Friday, the US market could be on the verge of a "super" rally. A lot of money has been sitting on the sideline, as financial problems in Europe hovered above like a big patch of dark cloud. If we do indeed get a clear solution from ECB next week, a lot of money will pour into the US stocks.
I’ll be back tomorrow and in my weekly Market Forecast, we’ll look at some exciting, bullish developments in various top sectors. We also discuss the stocks and levels to watch for the breakout into the super rally!
Good night and HappyTrading! ™