Last week began a new stage marked by a stronger dollar, a fact that was confirmed by the decision of the Fed, not only raise interest rates, but the projection to perform 3 additional increases to 2017 and other 3 in 2018 . This projection clearly indicates the strong growth of the North American economy.
This week the revision of gross domestic product and the publication of the consumer index in USA is expected. We do not expect any major impact or sudden changes in the variations of the major indexes.
Crude had a slight rise over the past week and the energy sector remains one of our favorites with marked upward trend. We continue to monitor the actions of the energy sector in our watchlist: USE (US OIL Fund), APA, MRO, PBR, SDRL and FCX. We will keep you informed about our next entry in this sector. FCX looks particularly attractive because it combines two sectors with strong uptrend: crude oil and copper.
The X steel and iron CLF had a fall towards the end of the week due to the reduction in steel sales projections. We will be watching closely these actions. Our position in CLF fell to $ 9.20, after touching $ 10. We will be monitoring our position and keep you informed.
In the case of Gold, we see a potential rise due to increased volatility. We believe that in the short term, probably from the first week of January, we will begin to see a shift downward trend. We will be preparing to take short positions and increase our portfolio with an entry in NUGT, Direxion Daily Gold Miners ETF Bull 3X or AEM (Agnico Eagle Mines) as a less volatile than NUGT alternative.
The solar sector showed a significant improvement, particularly FSLR I get to the $ 35, a fact that keeps us alert for a potential short entry (pointing to generate profits while the stock falls in price). TSLA, also part of the shares of alternative energy, rose equally. We will observe closely the possibility of entering the short close to $ 200.
AAPL, FB, AMZN, NFLX, GOOGL, NFLX NVDA and had a good week. Investors favored technology stocks clearly little affected by rising interest rates. Of this group, and we see NFLX NVDA as the strongest. AAPL still has much to prove and it is approaching a resistance zone in the range of $ 116.50 and 117.80 $ to be overcome to continue their ascent. NVDA could continue climbing to $ 110 if he can overcome the barrier of $ 100 this week. AMD is a new action that will be monitoring in the technology sector.
As for our investment recommendation BABA, despite playing our stop loss influenced by the fall of the Yuan against the dollar, not sending confirmation / notice of closing the position waiting to see their behavior today at the opening of market volatility since the previous week may have generated an overreaction by investors and the proximity of the moving average price of 200 (daily chart) can generate a potential upside rebound. We will be monitoring the opening of the market to make a decision. We must wait patiently before considering entering a new position in other international actions of our watch list as BIDU and PBR.
The financial sector continues to show an upward trend but not as strong as in previous weeks. We begin to see that financial can turn around at any time and suffer a correction. We will be monitoring GS, C and JPM.
In the pharmaceutical sector, one that will surely have a limited impact increases interest, we have been monitoring ICPT. It was consolidated in the $ 100 and has begun to recover after receiving approval from the European community for the use of its drug for biliary cirrhosis.
On the other hand, CMG (Chipotle Mexican Grill), returns to our watchlist. The stock has been moving in a range from the 350 440 $ to the $. CMG is approaching $ 400 important value that can define what their future trend.
Our team of traders are constantly monitoring the market, preparing for the next recommendation.
Actions we are watching closely: APA, CLF, NUGT, MRO, TWTR, FCX upward; FSLR, AAPL, TSLA potentially FB downward. We will keep you abreast of any relevant information that affects our watch list or open positions during the week.