WizzWatch Market Newsletter 02.02.09 – 02.06.09

To end the trading week the Dow Jones Industrial Average, the Nasdaq, and the S&P 500ended the week slightly lower for the fourth week in a row. The best performers for the week were the financials, followed by healthcare, and utilities. There are much more declines to come as we prepare for more layoffs, not so stellar earnings news, and a deeper recession. We are still in a bear market and it will take 8 to 10 months before we start to see a turn around.

At the Dow Jones Industrial Average the index ended the week on the downside below its 5 and 10 week moving averages for the second week in a row. The industrial average was the weakest performer of all indices; the index was pulled down due to an earnings disappointment at (CAT) Caterpillar, as well as not so good acquisition news from (PFE) Pfizer. The Dow ended the week trading at 8000.86 down -76.70 points or -0.95 percent on heavier than average downside trading volume of 6.36 billion.

At the Nasdaq Composite Index there was a slight pullback as the index ended the week lower. The Nasdaq is currently trading below its 5, 10, 50 and 200 week moving average as the index ended the trading week on the downside. The Nasdaq has been moving in a sideways consolidation for the past 12 weeks consolidating from 1200 to 1650. To end the week the Nasdaq closed at 1476.42 down -0.87 or -0.06 percent on 9.73 billion volume.

The Standard and Poor 500 suffered slight losses to end the week much lower than the week prior. For the month this was the worst January ever in the 81 year history of the S&P. The index is below all moving averages as it continues to pullback. Downside support on the S&P 500 is currently in the 740 area. The index ended the week trading at 825.88 down -6.07 points or -0.73 percent on trading volume of 22.1 billion volume.

As for the Gold Index there was a move to the upside in the price of the precious metal for the second straight week. In March of 2008 the index increased in price to multi-year highs of $1,030 per troy ounce. Gold has been on a run for the past 14 weeks coming from a low of $680 per troy ounce. The Gold Continuous Contract ended the week trading at $928.40 up $30.70 or +3.42 percent.

On the oil side of the equation the index opened up to start the week trading at $46.05 moving as high as $48.59 per barrel but ended the week trading much lower. Analyst surveyed predicts there will be a 38 percent chance that oil will rise in the week to come. 31 percent feel otherwise while the other 31 percent feel that there will be little change in the price of oil. Natural gas is down 21 percent year to date as it lags against the rest of the energy sector. The oil index is currently moving below its 5 and 10 week moving average due to the pullback in price this week. The index has been moving in a sideways consolidation for the past 8 weeks but has been on a 29 week decline after making all time highs in July of 2008 at $147.90 per barrel. This is the seventh straight month of declines the longest ever. Production cuts are not being felt as oil continues its slide. Oil inventories have been trending higher its biggest rise since July of 2007. Oil ended trading at $41.68per barrel down - $4.79 or -10.31 percent.

Exxon Mobile the world’s largest company broke its record set last year for the largest profit for a listed company. Exxon Mobile reported net income of $45.2 billion for 2008 although 4th quarter earnings fell slightly. Exxon’s net income was 7.82 billion down 33 percent. Full year revenues were up to $477 billion, $73 billion higher than the year before. Chevron reported strong earnings also as profits rose less than 1 percent to $4.9 billion. Chevron reported earnings of $2.14 per share.

President of the United States of America Barack Obama stated that “Congress has passed standards increasing legislation to at least 35 miles per gallon of gas by the year 2020. That 40% increase in fuel efficiency for cars and trucks could save over 200 million barrels of oil every day, nearly the entire amount of fuel that the United States imports from the Persian Gulf.”



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