WizzWatch Market Newsletter 07/27/09 – 07/31/09

As the week ended in the financial markets the Dow Jones Industrial Average, the Nasdaq and the S&P 500 all ended the week on the upside. The top 5 industry indices were the Biotechnology Index up 9.12%, Dow Jones Chemicals up 6.91%, the Disk Drive Index up 6.61%, S&P Healthcare up 4.78% and the Oil Services Index up 4.65%. Positive earning results from the likes of (AAPL) Apple Corp., (ISRG) Intuitive Surgical, (EBAY) e-Bay, (MMM) 3M Co., and (BDK) Black and Decker helped lift the market higher. As for now the bulls and the bears are continuing to battle as many investors and traders are feeling that the worst is now over. Investors will need to pay very close attention to the market going forward, exercise caution, be patient, and not chase stocks.

The Dow Jones Industrial Average started the week trading at 8,746.05 moved to a low of 8,745.90 before ending the week trading higher. This week’s price gain in the Dow Industrials sparked its biggest price gain since the year 2000. The price moved was partly due to great earning s news from companies such as (T) AT&T Corp., (MMM) 3M Co. and (SLB) Schlumberger, Ltd. to name a few. The Dow is now above its 5, 10, 32, and 50 week moving averages, but below its 200 week moving average at 11,282.86. The index broke through its 50 week moving average for the first time since falling below the 50 week moving average in December of 2007. 27 of the 30 components in the Dow Jones Industrial Average finished the week on the upside. In order for the Dow to move higher in the near term resistance above 9,475.00 will need to be broken. The index ended the week trading at 9,093.24 +349.30 points or 3.99% slightly lower than average trading volume of 5.31 billion. The average weekly trading volume for the Dow Jones Industrial Average is 6.36 billion.

The Nasdaq Composite Index continued its upside momentum for the second week in a row. The index is now above 1900 for the first time since September of 2008. Prior to the lower close of trading on Friday the Nasdaq has been making higher highs and higher lows for the past 12 of 13 trading days, its best performance since 1992. The Nasdaq started the week trading at 1,896.99 breaking through resistance in the 1,896.95 area and moved to a low of 1,89.00 before ending the week trading higher. Better than expected earnings announcements from companies such as (CELG) Celgene, (AAPL) Apple Corp., and (ISRG) Intuitive Surgical all helped push the Nasdaq higher to end the week. The index is currently above its 5, 10, and 50 week moving averages but below its 200 week moving average at 2,222.17. The Nasdaq ended the week trading at 1,965.96 +79.35 points or +4.21% on heavier than average trading volume of 11.81 billion. The average weekly trading volume for the Nasdaq is 10.71 billion.

The Standard and Poors 500 ended the week trading on the upside for the second consecutive week. The index is now above resistance levels for the first time since November of 2008. All indicators continue to point higher as the index crossed above its 5, 10, and 50 week moving averages. The S&P started out the week trading at 947.07, moved to a low of 940.99 before ending the week trading above resistance at 975.50. Downside support for the index is now at 864.63. The S&P 500 ended the week trading at 979.26 +38.88 points or 4.13% higher on slightly lower than average trading volume of 21.56 billion. The average weekly trading volume for the S&P 500 is 22.20 billion.

The Gold Index has been moving on the upside for the past two weeks as the dollar continues to slide against a basket of major currencies for its third straight week. The index is making a move higher as it continues to climb above its weekly moving averages. The index moved above its 10 week moving average for the first time in 7 weeks, and is now above its 5, 50, and 200 week moving averages. Gold is moving towards breaking above its previous price high at $989.80, a move above this previous high will take the price of the gold much higher in the near term. The Gold Index ended the week trading at $951.50 per troy ounce up $14.10 or 1.50% higher.

In the oil markets the index continued to move higher for the second week in a row after four prior weeks of declines. Crude oil continued its move to the upside as the dollar declined for the third consecutive week. As the dollar weakens oil prices will continue to move higher, a weaker dollar represents higher oil prices. In order for the oil index to move higher long-term, it will need to break above its 200 week moving average. Analyst predict that the price of oil will move as high as $75 per barrel before the end of the year, but If the index continues to move higher through the summer breaking above its 200 week moving average we may see oil above $100 by the end of 2009. The price of oil going forward will be based upon supply and demand as well as the economic outlook worldwide. Crude oil started the week trading at $64.37 per barrel dropped to a price low at $63.76, but ended the week trading at $68.05 up $3.47 or 5.37 percent.

By: Marlin Rolle

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