Sunday, November 15, 2009

13/11: Friday the 13th is kind to equity markets

U.S. markets closed-out the week with modest gains. The S&P500 index advanced 6.24 points (+0.57%) to 1093.48 on November 13th while the NASDAQ outperformed with a gain of 18.86 points (+0.88%) to settle at 2167.88.

Intra-day high and low values for the S&P500 were 1098 and 1088, respectively. These levels for NASDAQ index registered as 2172 and 2157. Ten-day, hourly charts for both indexes follow, produced at


Notice, reader, how the NASDAQ has been outperforming the broader market -- a stark contrast to the pullback of late October and early November, when the tech-heavy index lagged the broader market. The NASDAQ, nearly nudging 2170 at Friday's close, is oh-so near its 10-day highs, while the broader market is about a percent removed. Also, the last session's MACD and RSI values for the NASDAQ are more bullish than those for the S&P500. And the 'naz' did not come as close to its 50-period SMA as did the S-and-P during lows of the last two sessions.

Given these observations, I decided during Friday's session to transition from COF puts -- which I unfortunately sold at a slight loss -- into QQQQ December calls. With this move, I'm betting on an advance in the markets and, in particular, in the NASDAQ index, as QQQQ is a so-called exchange-traded fund (ETF) designed to track that index. To conclude this evening's entry, I include a six-month chart of QQQQ for broader perspective:

And to add a post-script tangent, I'm presently moments away from the commencement of a screening of the Polish-language film 'Ile Wazy Kon Trojanski?' (How Much Does the Trojan Horse Weigh?), a 2008 release directed by Juliusz Machulski, at the Polish Film Festival in Chicago. (To readers of the Polish language, apologies about the lack of true Polish script in some of the title's letters.) Perhaps a few words of commentary will follow in the upcoming week?

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