WizzWatch Market Newsletter 09.08.08 – 09.12.08

The past week was a wild week of trading for the major indices. To end the trading week the Dow, the Nasdaq and the S&P 500 all ended trading lower. We are in a bear market, historically September is considered one of the worst months to trade. Eight out of ten sectors lost ground, financials moved higher, and the U.S. Dollar continued to move higher against the other currencies. The unemployment rate rose 6.1 percent in August versus 5.7 percent in July. 84,000 jobs were slashed.

The Dow Jones Industrial Average ended the week on the downside for the 4th straight week, its biggest decline since June. The Dow ended the week trading at 11,220.96 down -322.59 or 2.79 percent on 3.12 billion trading volume.

The S&P 500 also ended the week lower for the 4th consecutive week. The S&P has been down since the beginning of June and for now it seems to be headed lower before any positive moves to the upside takes place. The S&P 500 ended the week trading at 1,242.31 down -40.52 or 3.16 percent on 15.9 billion trading volume.

As for the tech weighted Nasdaq there was also a huge move to the downside for the third straight week its biggest slide in 8 months. The Nasdaq wiped all the gains that it made since the begining of June coming from a low of 2,473.20. The Nasdaq ended the week trading at 2,255.88 down 111.64 or 4.72 percent on 8.68 billion trading volume.

The Gold index pulled back after moving to the upside for the past 2 weeks. As for now we are continuing to see the price of gold move lower. The Gold index is down from an all time high of $1,030.00 per troy ounce. The Amex Gold Bugs index, and the Philadelphia Gold and Silver Index continue lower as well. The Gold Index ended the week trading at $802.80 per troy ounce down $32.40 or 3.88 percent.

On the oil front there was continued pressure bringing oil down for the eighth week after hitting all time highs at $147.90 per barrel in June. Crude is currently at a five month low and may even head lower in the near term after breaking downside support at $110.00 per barrel. Energy stocks were the worst performers this week due to the pullback in oil prices. Oil is currently down over 25 percent since its all time high. Oil ended the week trading at $106.23 down 9.23 or 7.99 percent.

*** Please have a look at the charts below ***
By: Marlin Rolle