Wall Street was expecting some good news concerning Greece on Wednesday, but the country’s debt shenanigans will likely last into next week before another “real” game plan is established. While it wasn’t enough to marvel the pundits, there was some good news after the close as negotiations continued, and a relief rally could follow if Greece’s debt is reshuffled once again.
This may have sparked the rally into the close along with the President’s announcement of a three-year game plan concerning ISIS. Although war is never a good thing, a tougher stance was needed and has been overdue. The market finished mixed as a result, but fresh support held, and tech appears to be on the verge of a breakout.
The blue-chips on the Dow were rocky throughout the session and traded to a low of 17,759. Support at 17,800 was stretched but held into the close. There is additional support at 17,600 and the 50-day moving average on a pullback. Resistance remains at 17,900-18,000, with new highs on the horizon if cleared.
The S&P 500 slipped just a fraction of a point to finish at 2,068. Resistance at 2,070-2,075 has been solid and was tested into the close as the S&P triggered 2,073. A close above the latter should get 2,100 and all-time highs in play.
The Nasdaq added 13 points, or 0.3%, to end at 4,801. Tech was a bright spot on Wednesday, as the index stayed steady throughout the session after reaching a peak of 4,810. There was some mid-day weakness to 4,780, but near-term support at 4,775-4,750 stuck, with the 4,800 level holding into the close. The higher highs and higher lows this week look bullish. Continued closes above 4,800-4,825 could lead to 4,900-5,000 over the near term.
With tech as a stronghold, I want to bring you a bullish trade in a semiconductor name, Marvell Technology (MRVL).
I use a mix of fundamental and technical analysis, but support and resistance levels are key to me. For Marvel, resistance is at $16.25-$16.50. The 52-week high is at $16.65. A “golden cross” has formed in the chart, and a run to $20 could be coming if the aforementioned resistance levels are cleared. Support is at $15.50 on a pullback below $16, with additional help at $15 and the 50-day moving average.
I got my Momentum Options members 136% gains in the Marvell February 15 calls just a few weeks ago, and there’s another opportunity for double-digit gains with another near-term MRVL call.
Buy to open the Marvell March 17 calls (MRVL150320C00017000) at current levels.
My preliminary exit target for the trade is $1.00, which is where I’ll likely take profits in half the position while keeping some contracts in play for further gains.
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