Saturday, January 8, 2011

Weekly Digest - Week of 01/03/11

Market Performance

Sector Performance
 Market continued higher this week, as if anyone is surprised.  The week began strong as the market opened the month and new year up about 1%.  Volume has come back into the market as people return from vacation.  The market also gained strength on Wednesday with strong ADP employment numbers.  The rest of the week was filled with weakness as the market gave back gains.  The S&P is now trapped in a range 1262 - 1278 and we will watch the week ahead for a break of these levels.  Technology and healthcare came out strong with basic materials and consumer goods dragging behind.  This continues to show that there is always a bull and bear market somewhere.  Market continues to push up without much correction which we will address in our Weekly Forecast. 

Our trading this week has been strong now that volume is backing up the price action.  Monday we went long on Dean Foods (DF) which we closed Friday for a 9% gain.  We also went short on CoinStar (CSTR) on Wednesday as we were looking for a gap-fill plus a hedge in the market.  Unfortunately the cards wern't right in this trade as we were stopped out on Thursday for a 5% loss.  On Friday we went long in Cisco (CSCO) looking for another gap-fill play.  We will continue to hold this into next week since it hasn't moved yet.

Stay tuned for our Weekly Forecast and chart analysis on CSCO

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