WizzWatch Market Newsletter 12.01.08 – 12.05.08

As for the week that passed the Dow Jones Industrial Average, the Nasdaq, and the S&P 500 all ended the week trading higher. This week was a very short week due to the Thanksgiving Day celebrations, as well as a half day of trading on Friday. The S&P 500 had its best week in 34 years and its first 5 day winning streak in the past 52 weeks. The Nasdaq had its best week in 7 years as the financials were the biggest advancers on the tech weighed index. The top 3 industry leaders for the week were financials, followed by consumer discretionary and energy stocks. Citigroup was the biggest mover up over 119 percent for the week after falling over 60 percent the week prior. The Dollar fell for the first time in 4 weeks and due to the decline we may see a spike in the price of oil and gold going forward.

The Dow ended the week on the upside, up 9.73 percent, the Nasdaq up 10.92 percent and the S&P 500 up 12.03 percent to end the week, but as for the month all three indices ended the month trading lower. The Dow ended the month down 5.32 percent, the Nasdaq down 10.77 percent, and the S&P 500 down 7.48 percent. The month of November was a rough month due all the negative data that we have encountered across the board from the fall of Gross Domestic Product to Consumer Confidence numbers.

The Dow Jones Industrial Average ended the week on the upside above its 5 week moving average, but below its 10, 50, and 200 week moving averages. As for now the index is poised to head higher after ending the week closing at the highs of the week. The Dow ended the week at 8,829.04 on volume of 5.75 billion closing at 8,829.04 up 798.62 points or 9.73 percent on the upside, the average weekly volume for the Dow is at 4.53 billion.


















Over at the Nasdaq the index ended the week trading higher after opening the week at 1,408.75. The Nasdaq Composite Index is currently below its 5, 10, 50, and 200 week moving averages. The 5 week moving average is right above its closing price on Friday at 1,561.02. The Nasdaq ended the week trading at 1,535.57 up 151.22 points or 10.92 percent on lighter than average trading volume. The average weekly volume on the Nasdaq is 10.83 billion, the index ended the week trading with volume of 7.69 billion.



















The S&P 500 ended the week trading at the highs of the week. The index has been on a decline for the past 3 weeks, but ended the week on the upside after breaking through its 5 week moving average. The index is currently below its 10, 50, and 200 week moving averages but looks like it will head much higher. The S&P 500 ended the week trading at 896.24 up 96.21 points or 12.03 percent on 18.34 billion trading volume, the average weekly volume on the S&P is 19.87 billion.



















As for the oil index we are currently seeing a move to the upside after the index has been on a decline for the past 19 weeks. The oil index is currently below its weekly moving averages for now. There is a possibility that we may see a move to upside in the next few weeks. Saudi Arabian oil ministers will most likely cut production in order for crude oil to move higher after its decline of over 60 percent due to the global recession. OPEC’s largest producer Saudi Arabia stated that $75 per barrel oil would be a fair price in order to support investment in new oil fields. Members of OPEC will meet in Oran, Algeria on December 17th . Ministers in Venezuela, Nigeria and Iraq also stated that $75 per barrel would be a fair price going forward. Non OPEC members such as Russia, Norway and Mexico will also need to cut prices for oil to move higher. Oil ended the week trading at $54.43 per barrel up $4.50 or 9.01 percent, but down $13.34 per barrel or 19.73% to end the month of November.



















The price of Gold has been on the rise for the past four weeks after hitting a low of $681.00 per ounce in mid October. The reason for the rise in price is due to the pullback in the price of the U.S. Dollar. The Gold index is poised to head higher in the near term currently trading above its 5 and 10 week moving averages, but below its 50 and 200 week moving averages. The AMEX Gold Bugs Index (HUI), and the Philadelphia Gold & Silver Index (XAU) have also been moving higher for the past 2 weeks and may continue to head even higher. The Gold Index ended the week trading at $819.00 per troy ounce up $27.20 or 3.44 percent.