September 19, 2011
The equity markets recorded gains across the board as last week turned into the best performing week since July 2009. The NASDAQ led the way with a 6.3% gain as it retook the ever important 50 day moving average. The S&P 500 (SPX) rose by 5.4% in the broad rally. Yields increased a bit as the 10 year U.S. Treasury closed at 2.05 up 14 basis points.
From a technical perspective the NASDAQ Composite is showing leadership characteristics as it took out the August swing high at 2611.58 and closed at 2622.31. The SPX closed at 1216.01 and has some work remaining to clear the August swing high at 1230.71. This will be a key test should price approach that area. Friday was options expiration also but after an 80 point rally and 5 straight up days some brief pullback can be expected.
With the NASDAQ leading the way it is not surprising that AAPL had a good week as it closed over $400 per share and announced that the I Phone 5 will be rolled out in a few weeks. Other names that are trading well and should be on your radar include BIDU, ALXN, ULTA, DLTR, PCLN and HANS. The gold stocks are still trading well despite the minor pullback in gold and other names that are tradable include MA, V, DG, CRR, and UA. Be patient on Monday as the overhang of options expiration could impact early trading.
