WizzWatch Market Newsletter 03.02.09 – 03.06.09

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

Due to the current conditions of the market I would recommend that many investors that are non professionals 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, fundamentals as well as technical analysis. This is the time to evaluate any losses that you may have had in the past in order to prepare for the future once the market turns positive.

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 beginners 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 youtube search.

At the major indices we continue to see the market pullback for the third consecutive week in a row. The Nasdaq Composite Index, the Dow Jones Industrial Average and the Standard & Poors 500 have been on a decline as many investors fear that the market will get worse before it gets get better.

The Dow Jones Industrial Average fell below its monthly downside support below 7,100 to end the week closing at 1997 price levels. The Dow has been on a decline for the past 72 weeks since October 2007 after hitting all time highs at 14,198.10. In order for the Dow to turn positive and turn back to the upside it would need to break its 5 and 10 week moving average at 8,106.87. The Dow Jones Industrial Average ended the week trading at 7,062.93 down -302.74 or -4.11 percent on heavier than average volume of 11.33 billion.

At the Nasdaq Composite the index declined for the third week in a row as it tumbled moving close to downside support at 1,192.42. The Nasdaq has been moving in a sideways consolidation for the past 21 weeks. A break of downside support will take the Nasdaq much lower very close to levels that have not been seen since 2002. The index ended the week trading at 1,377.84 down -63.39 or -4.40 percent on volume 11.55billion.

Over at the S&P 500 we continue to see more and more declines as the index continues to fall. The Standard and Poors 500 has been down for 8 of the past 9 weeks. The index has broken through November lows below 750 to end the week trading lower. The S&P is currently trading at 1997 price levels after ending the week trading at 735.09down -34.96 or -4.45 percent on heavier than average trading volume of 31.16 billion.

In the gold markets there has been a week of downside movement after coming from a low of $680 per ounce to move as high as $1,002.20 per ounce before ending the week trading much lower. Gold has been on a nonstop price move since the beginning of November and will continue to move higher if the rest of the market continues to decline. The index has been moving to the upside making higher highs and higher lows above its 10 week moving average. Downside support for the gold index is at $910 per ounce below its 5 week moving average. The Gold Index ended the week trading at $942.50 per ounce down -$59.70 or -5.96 percent.

As for the Oil Index there has been a slight move to the upside after the index has moved in a sideways consolidation for the past 13 weeks after falling below $51 per barrel. The oil index has moved above its 5 and 10 week moving average this week after closing below both moving averages for the prior 3 weeks. A move above $51 will be a positive one in order for oil to run higher. We are now approaching the spring and summer months as oil prices historically moves higher so therefore we can expect to pay more at the pump unless demand for oil remains on the downside. The oil index ended the week trading at $44.76 up $4.73 or up 11.82 percent.


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