WizzWatch Market Newsletter 04.20.09 – 04.24.09

As for this week in the stock market, all three major indices continue their upside move for the 6th week in a row. The Dow Jones Industrial Average, the Nasdaq and the S&P 500 continue to move higher. The dollar has also been moving higher against a basket of major currencies while the gold and oil markets continue to move lower. The CPI – Consumer Price Index showed its first year over year decline since 1955 as the index fell 0.1 percent earlier in the week. We also got great earnings news from JP Morgan and Google that helped to push the market higher. Next week we will get earnings announcement from companies such as Apple, Microsoft, eBay, and Yahoo. Google beat analyst earnings expectations to help push the Nasdaq higher and there were two new IPO’s that were released to the market this week, Rosetta Stone and Bridgepoint Education both stocks moved higher to end the week. We must keep in mind that we are still in a recession with a long way to go before everything is normalized. Historically the market declines between the months of April through October, and after 6 weeks of upside I think we are in position for a huge pullback going forward.

To end the week the Dow Jones Industrials moved slightly to the upside. The Dow ended the week above its 5 and 10 week moving averages. Downside support is currently at 7,857.37. The index pulled back to a low of 7,870.48 before turning around to Dow began the week trading at 8,082.02 but ended the week trading at 8,131.33 up 47.95 or 0.59 percent on 11.7 billion trading volume.

At the tech weighed Nasdaq there was a similar move as the Nasdaq also moved higher to end the week. The Nasdaq has been on the run for 6 weeks in a row making higher highs and higher lows. As for now the index has been in overbought territory for the past 2 weeks but we may see another week of gains in the week to come. The Nasdaq is trading above the 5 and 10 week moving averages but needs to break through the 1790.00 area in order to turn positive and move higher going forward. The Nasdaq ended the week trading at 1,673.07 up 20.53 points or 1.24 percent on 10.8 billion volume after opening at 1,640.29 to start the week.

The Standard and Poors 500 was the biggest gainer of all three major indices this week. The index opened the week trading at 855.33 but ended the week in positive territory climbing for the 6th straight week. The index is currently below its 50 week moving average at 1,044.91 but above both its 5 and 10 week moving averages. The S&P has resistance on the top side at 943.85 and downside support at 792.51. The S&P 500 ended the week trading at 869.60 up 13.04 points or 1.52 percent for the week on 29.04 billion trading volume.

In the gold markets there has been a decline in the price of gold for the past 8 weeks. The AMEX Gold Bugs Index, the Philadelphia Gold and Silver Index, the Goldman Sachs Precious Metals Price Index and the Gold Index have all been moving lower. The Gold Index moved as high as $1,007.70 per troy ounce 9 weeks ago but has been on a decline since then. The Gold Index started the trading week out at $881.90 but ended the week trading much lower slightly above its 50 week moving average at $869.04. The index ended the week trading below its 5 and 10 week moving averages at $869.10 per troy ounce down $9.70 or -1.10 percent.

At the (NYMEX) – New York Mercantile Exchange the price of oil has started to decline after 7 weeks of gains moving from a low of $37.12 to $54.83 per barrel. OPEC says oil demand is shrinking faster than expected due to the economic conditions around the world. OPEC revised its demand forecast down by 430,000 barrels to 84.18 million. Inventories were larger than expected up 5.6 million barrels as distillates fell 1.2 million and gasoline declined by 900,000 barrels. The Oil Index has downside price support at $48.34 with upside resistance at $55.98 per barrel. In an earlier report I stated that oil needs to break above $56 per barrel in order to move higher. As for now we have not broke through upside resistance but it would be a great idea to pay attention to the $56 area as the pivot point for oil going forward. Oil ended the trading week at $52.47 per barrel down $2.22 or 4.06 percent for the week.

By: Marlin Rolle

*** Please have a close look at the charts below ***