The Dow was up 440.53 points on Friday after grinding higher all week. Price didn’t clear the previous high from February 26 on the Dow (see DIA) but the S&P 500 index (see SPY) did. Also, the Nasdaq 100 index (see QQQ) made a new all time high.
SPDR Dow Jones Industrial Average ETF (DIA) daily
SPDR’s S&P 500 Trust Series ETF (SPY) daily
PowerShares QQQ Trust Ser 1 (QQQ) daily
Financials (see XLF) led the way gaining 2.41% and are within 4% of the all time high from 2007. If financials clear this resistance zone of around $31 this could set the stage for the the Dow and S&P 500 to make new highs.
SPDRs Select Sector Financial ETF (XLF) daily
It appears the coast is clear and all is right in stock marketland until the next noise bomb drops. Price action is important, not so much the noise of why.
Price action is almost too good and momentum is certainly favoring higher prices. Tech continues to rip and the Netflix (NFLX) chart still makes me nervous.
Netflix Inc (NFLX) weekly
As I mentioned a couple of weeks ago I bought quite a bit during the volatility of early February; AMZN, SQ, NFLX. AAPL and more SPY. I felt it was too volatile during that time to make recommendations and you would have had to really keep a close eye on what you were doing.
More opportunities are brewing. Stay tuned.
Continue to hold all open positions.
Trade Smart,
Don
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