Weekly Roundup February 2-6

Feb 17, 2015   //   by Profitly   //   Profitly, Profitly Weekly  //  Comments Off on Weekly Roundup February 2-6

Time for another weekly roundup!

Stocks in the U.S. posted big gains this week with the S&P 500 posting its biggest gain since December 19. The Dow Jones was up nearly 200 points on Monday alone. It wasn’t entirely clear what drove the big rally, with some traders attributing it to simply making up for last week’s losses. Stocks are once again sitting at the record levels they reached late last year. Mergers and acquisitions also helped push stocks higher, with news that Pfizer is planning to buy Hospira Inc. for about $16 billion giving health-care sector stocks a boost.

Here’s performance broken up by sectors (vs S&P 500):

Outperformers: Telecom +6.95%, Energy +5.38%, Financials +4.81%, Materials +4.68%, Consumer Disc. +4.23%

Underperformers: Utilities (3.73%), Healthcare +0.69%, Consumer Spls. +2.22%, Tech +2.49%, Industrials +3.02%

There were some mixed takeaways from the economic calendar, though payrolls surprised to the upside again and news flow surrounding the auto and housing markets was upbeat. Greece and oil continued to dominate the macro headlines. Telecom was the best performing sector this week, with Energy being another standout with the jump in oil. Oil rallied sharply this week with WTI crude gaining 7.2%–the biggest weekly increase since February 2011. Even with a nearly 9% pullback on Wednesday, it ended the week up almost 20% from the low on January 29. The big tailwind was chalked up to falling oil rig counts in the U.S. On Friday, Baker Hughes reported that the U.S. oil rig count fell 83 to 1,140, the lowest level since December 2011 and down nearly 30% since October. OPEC must be pretty happy.

There were some mixed takeaways from the economic calendar this week. On the positive side, nonfarm payrolls jumped 257K in January, ahead of consensus expectations of ~230K. In addition, the net upward revision to November and December totaled 147K, leaving the three month average at 336K. The unemployment rate rose one-tenth to 5.7%, though the participation rate was up two-tenths to 62.9% (meaning more people jumped back into the labor force).

It’s safe to say that Greece will continue to be a major focus and driver of stocks both overseas and in the U.S. There are some key votes/discussions going on next week that will focus on austerity and budget measures. Greece wants less austerity while Germany just is not having it–saying that there needs to be a focus on getting spending, etc under control. An impasse would leave Greece without funding at the end of this month.

Now for how our gurus did this past week. Let’s start out with Tim. he didn’t have too many big trades this week, but

Next up we have Super Man. Despite having a bit of a rough week, he is still up half a million dollars since the start of the year. That’s pretty good if you ask me! These losses will also serve as a learning experience going forward for both Super Man and his students/subscribers. If you limit your losses and learn from them, you will be a much better trader.

Here are a few of our previous roundups:

December 1-December 5

December 8-December 12

December 15-December 19

December 22-December 26

January 5-January 9

January 12-January 16

January 19-January 23

January 26-January 30