The markets continued higher today, finishing the week positive again. All the major indices closed at new highs yet again as the three week rally continues. The Dow 30 was up 68, the S&P 500 added 8, and the Nasdaq 100 closed up 18 in today's half day of trade. Traders remain in awe of this rally and continue to pile into stocks and out of bonds and gold. Next week there are some important economic numbers due out such as GDP, and consumer confidence but the real focus will be on the OPEC meetings and how they will respond to continued low priced oil.
For stock market investors there will be a number of stocks / ETF's to keep an eye on as these OPEC meetings take place. The main ETF's such as United States Oil Fund (NYSE: USO), and the Oil Services ETF (NYSE: OIH) will be some to enjoy the most volatility. Other ETF's like S&P Oil & Gas (NYSE: XOP) will certainly be impacted by the decisions OPEC makes next week.
The financial sector (NYSE: XLF) closed at new highs today (+0.13%) along with the markets. In the past three weeks the financials have seen some of the stronger gains, adding of 13% since the election results were announced. While almost every short term trader on the planet feels the financials (along with the markets) are extended in the short term, the financials have disagreed and continued to march higher.
Next week will be an important one for the overall markets. Another strong week and the short sellers will likely throw in the towel which would fuel even higher prices. A market pullback on the other hand could be swift as short sellers' patience finally pays off and the last of the buyers gets scared out of their new long positions.