WizzWatch Market Newsletter 02.23.09 – 02.28.09

STOP TRADING !!!!, STOP TRADING !!!!, STOP TRADING !!!!

Due to the current conditions of the market I would recommend that many investors that are non professional to stop trading. We are still in a BEAR MARKET and there might be more downside pressure in the near term. Please take this free time to study the stock market, fundamental as well as technical analysis.

There are many websites that define the meanings of both terms and also teach investors a little bit about the stock market. You can find information via google, msn, dogpile or many other search engines. A great website for begginers that I recommend is moneycentral.com. I also have a few technical trading videos on youtube that you can also take a look at, simply type in marlinrolle or wizzwatch into the you tube search.

For the week that past it was not a good week for stocks. This was one of the worst weeks in a very long time as the stock market continued its decline. Many investors were thinking that the financial mess was very close to being over but as we can see it’s not even close to being over. How low can the market continue to downturn from here is a question many investors are wondering. The market may not begin to turn around until late October 2009 into the beginning of 2010. Week after week the stock market continues to pump out very bad economic data as world markets fall.

The Dow Jones Industrial Average, the Nasdaq and the Standard and Poors 500 all ended the week trading lower. Financials were the worst performers as U.S. Senate Banking Committee Chairman Christopher Dodd stated that banks will have to be nationalized for a short period of time.

I’ve predicted this downturn for months as other traders continued to bash the truth in order to avoid accepting the facts. This market is a 100 percent stock pickers market. We are in a declining market filled with nervous investors with no answers to how to play the market. If you are not a stock picker or a professional trader the best place to invest is under your bed until the market starts to turn around. In other words, stop trading.

The Dow Jones Industrial Average ended the week on the downside for the past 7 out of 8 trading sessions. The index is currently below its 5, 10, 50 and 200 week moving averages as it fell below September 11, 2001 lows for the first time in years. The Dow ended the week trading at 7,365.67 down -484.74 points or -6.17 percent on 6.65 billion trading volume.

Over at the Nasdaq Composite Index there were also declines in the index for the past two weeks as it ended the week trading on the downside. The Nasdaq has been moving in a sideways consolidation for the past 21 weeks and it’s currently at December 2008 lows. Downside support is at 1,192 as the index moved slightly below its 5 and 10 week moving averages. The index as it ended the week trading at 1,441.23 down -93.13 points or -6.07 percent on 8.96 billion trading volume.

At the S&P 500 it’s also encountered a challenge during the week as it also fell to lows not seen since mid November 2008. The S&P 500 fell below its 5 week moving average as it continued its decline for the second consecutive week. The S&P ended the week trading at 770.05 down -56.79 points or -6.87 percent on 21.21 billion trading volume.

As for the stocks trading in the Gold Index we have continued to see the price of the precious metal move higher and higher week after week. The Gold Continuous Index ran up big this week as the rest of the market continued to decline. The price of gold has been on a tear for the past 17 weeks making higher highs and higher lows. The move in the price of gold was a very big move due to the fact that the index is very close to breaking into multi-year high territory. In March of 2008 the index hit all time highs at $1,030.00 per troy ounce. The gold index continues to move higher as the rest of the market retreats coming from a $681 low in October to finish the week trading at $1,002.20. The Gold index ended the week on the upside trading at $60 per ounce or 6.37 percent after opening to begin the shortened holiday week trading at $940.80 per troy ounce.

In the oil markets investors are very happy that the price of crude oil has been moving in a sideways consolidation for the past few weeks. Gasoline has been cheaper at the pump in comparison to the higher prices consumers paid at the pump during the summer months of 2008. I don’t think anyone should be too happy going forward being that the summer months are not too far away. As the market remains bear the price of oil will start to fluctuate in the months ahead. The price of oil historically climbs during the spring and summer months and decline during winter and fall. As for now the price of oil has been moving between a $35 low to a high of $49 per barrel for the past 11 weeks. The index is currently below its 5, 10, 50 and 200 week moving averages. The index has recently fell below its 5 and 10 week moving averages, therefore we may continue to see further declines before oil moves higher. The oil index ended the week trading at $40.03 per barrel down $1.94 or 4.62 percent.


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