WizzWatch Market Newsletter 06.08.09 – 06.12.09

As the past week came to a close the Dow Jones Industrial Average, the Nasdaq and the S&P 500 all ended the week on the upside. The biotechnology index, insurance index and the airline index all moved higher to end the week. The utilities index, the Dow Jones chemical index as well as the Philadelphia gold and silver index fell due to the rise of the dollar.

The Dow Jones Industrial Average moved to the upside for 11 of the past 13 weeks. Alcoa and Boeing led the Dow Industrials higher to end the week. Citigroup was the worst performer as it ends its final week as a component of the Dow Jones Industrial Average. General Motors has also been removed from the Dow Industrials now trading on the Pink Sheets under the symbol (GMGMQ). Citigroup and General Motors will be replaced with (CSCO) Cisco Systems and (TRV) Travelers. In September 2008 (AIG) American International Group was replaced with (KFT) Kraft Foods. The Dow opened up the week trading at 5,501.53, but moved slightly lower before ending the week on the upside. The index broke through upside resistance after moving in a sideways consolidation for the past four weeks. The Dow is currently trading above its 5, 10, and 50 week moving averages. The 200 week moving average is at 11,351.37, we have a long way to go before we get there. The Dow Jones Industrial Average ended the week trading at 8,763.13 +262.80 or 3.09 percent on 5.37 billion lower than average upside trading volume.

At the Nasdaq the index also moved higher after opening the week at 1,796.09. The Nasdaq Composite Index has been on the upside for 12 of the past 13 weeks. The index has been moving above its 5 and 10 week moving averages for the past 12 weeks as it finally crossed above its 50 week moving average for the first time since January of 2008. The Nasdaq closed to end the week at 1,849.42 up 75.09 points or 4.23 percent on the upside on higher than average volume of 11.97 billion. The Nasdaq is currently 383 points away from its 200 week moving average.

The Standard and Poors 500 moved higher to end the week as it continues its run up for 11 of the past 13 weeks. The S&P 500 moved higher due to the help of computer related stocks as well as industrials. Telecommunication stocks and healthcare were the worst performers. The index is above its 5, 10 and 50 week moving averages but below its 200 week moving average. The index ended the week trading at 940.09 up 20.95 points on 22.8 billion trading volume. The index is poised to move higher in the near term as it moved above resistance after consolidating sideways for the past four weeks.

As for the price of gold, the index declined this week after moving to the upside for 6 of the past 8 weeks. The pullback in the price of gold is due to the rise of the U.S. Dollar against a basket of major currency pairs. The Euro, British Pound and Japanese Yen all pulled back against the Dollar as it recovered from multi month lows. Investors are feeling the recession is just about over and the markets are in recovery mode. The Philadelphia Gold and Silver Index and well as the AMEX Gold Bugs Index all declined to end the week lower. The Gold Index opened up the week trading at $980.40 but ended the week trading at $954.70 per troy ounce down $24.60 or -2.51 percent on the downside.

Light sweet crude continued its uptrend as it moved higher for the past 14 of 16 weeks. The big move was a break of $56 resistance 4 weeks prior. After the index broke through that resistance area the oil index has continued its uptrend. The Oil Index is currently above its 5, and 10 week moving average but slightly below its 50 week moving average in the $72 per barrel area. At the (NYMEX) New York Mercantile Exchange Natural Gas, Brent Crude Oil, Gasoline, and Heating Oil all ended the week on the upside. I feel predict that oil may move as high as $85 to $ per barrel before then end of the year. Oil ended the week trading at $68.44 per barrel up $2.13 or 3.21 percent for the week.


By: Marlin Rolle

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