The bulls got back on track last week following another push to all-time highs. While no one talked about it, Alcoa (AA, $8.22, down $0.10) was the main catalyst behind the bullishness as their numbers came in better-than-expected. The Fed minutes were released early on Tuesday by a fat finger in DC, or by a zombie that forgot what day it was, and it helped take the pressure off as there was no anxiety on when QE may or may not end.
Wednesday’s surge past resistance was followed by Thursday’s run to new highs for the Dow and S&P 500. Although Friday morning was weak there was a steady rebound into the close that has the bulls seeking continued new highs.
The Dow fell less than a tenth of a point (.08), or 0.0%, to finish at 14,865 on Friday. The blue-chips needed to hold 14,400 on any pullback to start the week and the bears tried to rekindle their Monday magic by pushing 14,497. That would be the best it would get as the close above 14,600 gave us a good feeling the bulls would push our 14,750 target. Tuesday’s high was 14,716 and was a prelude to Wednesday’s surge to 14,826. The close at 14,802 opened the door for a test to 15,000 and Thursday’s peak was 14,887. There was a slight pullback to 14,790 on Friday as prior resistance at 14,750 will now try to hold as short-term support. If not, watch for 14,600 and more importantly 14,400 to hold on an a pullback. A break below the 50-day MA at 14,200 would suggest a trend change as the 5-year chart shows the uptrend line at 14,000. The Dow started Monday at 14,565 and soared 300 points, or 2.1%, for the week. For the year, the blue-chips have now gained 1,761 points, or 13.4%. (continued…)
If you are not a subscriber but would like see our chart work and read more market commentary, please click here. We are one of the fastest growing stock options trading advisors on the internet and we had an incredible 2012. We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter and our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis. Together, we were 159-70 (70% win rate) for both newsletters in 2012 with over 30-triple-digit winners. Our 5-year track record from 2008-2012 is now a staggering 621-273 that is also a 70% win rate. We doubt you will find a better options trading service. Closed Trades for 2013: 35-16, for a 69% win rate, including the Weekly Wrap that is 10-1).