Weekly Review and the Week ahead

This is a review of our previous week to learn what went wrong, what went well and what could be improved upon.

Good Calls:

Short ALCOA INC. AA at $13.8 to $13.1    5% gain  
Short United States Steel X at $48 to $44  10% gain

Long Bank Of America Corp BAC at $14.8
Long Las Vegas Sands LVS at $14.95

Bad Calls:

Long Las Vegas Sands LVS at $16.9
Long Bank Of America Corp BAC at $15.15

I was overly bullish last week, thus I made 2 early Long purchases. I should use the DOW chart to determine the market direction. Overall it was a good week as we made from the shorting of materials.

THE WEEK AHEAD

I will be watching the Financial sector which was oversold. The fundamentals of that sector are really good, the sell off was a trading scare and the institutions must have accumulated.

I am wary of Material stocks such as Alcoa Inc, though the chart looks good, however, they will be affected hugely by the commodities trade. Aluminium price has been diving down from a high of $1.05 to only 89cts now.

I am bullish on Casino stocks such as Wynn Resorts WYNN, MGM Mirage MGM, Las Vegas Sands LVS and Melco Crown Entertainment MPEL.
This sector will be a day trader’s playground next week. Expect volatility come monday. The charts suggest that this will be bullish throughout the week and it could test previous highs. This is because, MACAU gaming revenue just keeps increasing. That is why all these stocks are strong as they have exposure in the Macau gaming market.
I think WYNN would be the best play.

Tech sector continues to amaze with their bubble rally. There is no doubt high growth in this sector, attributing to their enormous premiums which have been flagged as overvalued.
Watch Apple Inc AAPL, Microsoft Corp MSFT and Intel Corp INTC.
This is currently not my favorite sector as the stocks are trading at premiums. In a recovery play that we are seeing now, they have the least upside as compared to Materials and Financials and definitely Casinos.

Dragon Stocks Next Week:

Las Vegas Sands                         LVS
MGM Mirage                              MGM
WYNN Resorts                           WYNN
Melco Crown Entertainment       MPEL
BANK OF AMERICA CORP             BAC
Wells Fargo & Company             WFC
JPMorgan Chase & Co                JPM
Goldman Sachs Group                GS
Intel Corp                                 INTC
Avis Budget Group Inc                CAR

These stocks are suitable for day trading and investing.
I will be providing chart analysis for the stocks that I intend to trade.

Disclaimer: These stocks recommendation are solely based on my opinion. All traders are advised to conduct their own due diligence before making a purchase decision.