Hello RHS Finance Club members! The following information is brought to you by our VP, Ken Croker, and our President, Michael Trehan.
The market had modest gains ending November 23. Here’s a breakdown of the major indices this week:
- S&P 500: Up 1.2% for the week, after a large gap up on Friday.
- Dow Jones: Up 0.51% for the week, large gap Friday
- Nasdaq: Up 0.24% for the week, breakaway gap on Friday
Let’s break the market down into sectors: Telecommunications was hit hard, with Verizon (VZW) down almost 2.5% for the week. Energy had a nice run this week, with XLE up 3.3%. Technology was a laggard, with XLK closing up only 0.36%. Basic materials outperformed, with XLB seeing a 2.75% pop.
Predictions:
- Energy will retrace slightly, with a long run upward
- Facebook is still consolidating and may experience a large move in either direction
- Disney looks ripe for a long term entry, which Michael has done so through LEAPS (education blog on that later).
- Goldman Sachs has a setup similar to Disney, and may also be an entry-candidate.
– Michael Trehan, Pres. and Ken Croker, VP