Apple Announcement Gives Wall Street a Push
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(eToro Blog) Following a week in which traders saw robust gains on Wall Street, despite a slow beginning, the major indices now seem to have found their footing and are off to a good start, albeit in a relatively narrow band, as this new trading week begins. As of the time of this writing, the DJIA was trading higher 13246.47, up 13.85 points, as were both the NASDAQ and the SPX500; the NASDAQ was trading at 3,076.24 points, a gain of 20.98 points while the SPX500 was at 1410.30 points with a gain of 6.13 points. The NASDAQ’s gains are being attributed to Apple’s announcement before the bell of a quarterly dividend of $2.65 per share, as well as a stock buyback program which will amount of $10 billion.
In line with the trend in the broader market space, on OpenBook, sentiment for all of the indices was predominantly bullish. OpenBook trader drangie, who regularly trades the SPX500 to consistent profits, has an open long position which has just struck break-even; three other longs were closed out over the past few hours, which returned profits of 4.17%, 3.33% and 2.08% when they each hit their respective TP. Over the past six months this trader has allocated approximately 85% of the portfolio to the SPX500; while statistically over that entire period this trader has lost 0.6% on the SPX500, a review of her trading history (last 100 trades) shows that the vast majority of positions in the SPX500 have closed profitably. That suggests that this trader’s original strategy has been revisited and improved. For the month, this trader has recorded an 11.3% profit.
Analysts expect that, in the absence of any surprises from the Fed, economic reports will be the market’s driver going forward, and improvements in labor, and consumer spending and sentiment could further entice investors.
Copyright 2012 eToro Blog
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