WizzWatch Weekly Newsletter 07.14.08 – 07.18.08

After the close of the markets on Friday July 11, 2008 we are continuing to see week after week of down turns in the major indices. The Dow and the S&P 500 have been down for the past 8 weeks, and the Nasdaq has been on the downside for the past 7 weeks in a row. Investors are afraid to invest due to the current economic conditions around the world.

The Dow Jones Industrial Average is continuing its pullback to price levels not seen since December of 2005. The Dow ended the week trading at 11,100.54 down 188.00 or -1.67 percent with heavier than average trading volume at 4.7 billion. A move above the 11,500 area would take the Dow higher but as for now the index continues to move lower.

The Nasdaq Composite Index continued to fall along with the other major indices. The Nasdaq is currently trading under its 200 day moving average set at 2,299.10. The index ended the week trading to close at 2,239.08 down 6.30 or -0.28 percent with heavier than average trading volume on the downside at 11.6 billion. There might be a pullback to the lows that were made in February 2008 at 2,155.42
As for the Standard and Poors 500 also known as the S&P 500 we are continuing to see downside pressure. The S&P 500 ended the week pulling back to price levels that were last seen between the months of July through October of 2005. The index ended the week at 1,239.49 down 23.41 or 1.85 percent.

The price of Gold started a new run to the upside after breaking above the $950 resistance area. The Gold index is likely to cross above its $1030.00 price high that was made in March of 2008. The index closed on Friday trading at $960.00 per troy ounce up $27.00 or 2.89 percent.

On the oil front there was a pullback in prices earlier in the week to a low of $135.14 per barrel. There were many happy investors in the markets thinking that the end of the upside move in oil prices were all said and done. Those thoughts were quickly reversed after the country of Iran OPECs second largest producer of oil test fired 9 missiles near the Strait of Hormuz including one that could reach Israel. There was also a strike of 4500 employees of the state controlled Brazilian oil company Petroleo Brasileiro to get full pay for the day they return from a 14 day shift at sea. Petroleo Brasileiro trades on the New York Stock Exchange under the trading symbol (PBR). There was also renewed tension in Nigeria as militants of the group MEND’s (The Movement for the Emancipation of the Niger Delta) stated that they will resume attacks on oil facilities. Since 2006 about 20 percent of Nigeria oil exports have been cut due to the attacks. The Oil Index hit all time highs earlier during the week at $147.90 but ended at $145.66 up 0.37 or 0.25 percent.

By: Marlin Rolle
*** Please click on the charts below to have a closer look ***