Dow Jones posted a weekly gain of 1.2%, S&P posted 1.8%, and Nasdaq with best weekly gain in 14 months posted 3.8% gain. Stocks certainly behaved as anticipated.

With the Fed did as anticipated and retail sales was unexpectedly strong, but weak job report. What should we expect next week? I believe we should continue to expect a strong week as we have more than a week away from the PPI number (Nov 15) which will influence the Fed about the inflation picture. The import and export prices release on Nov. 10 may have some influence, but I don’t expect to have significant impact.

I’m bullish on retail sector (teen and luxury), internet (online travel, application service), biotech, and Wireless like QCOM MOT. Bearish on energy and metal.

Personal Trade: Rolled BBYAW – BBY JAN 2006 47.5 Call (Opened at 1.75, Closed at 3.8, For 117% profit) To BBYCK BBY MAR 2006 55 Call (Opened at 1.75).

This entry was posted on Saturday, November 5th, 2005 at 3:03 pm and is filed under Stock. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.