WizzWatch Weekly Newsletter

For the week that passed in the stock market all three major indices advanced to edge the week higher. The Dow Jones Industrials moved above the 10,000 area for the first time in over a year. As for now all three major indices are continuing to move higher since their March 2009 price lows as investors await a correction in the market. Oil continued its advance to the upside breaking above $75 resistance for the first time this year. Gold also move higher to end the week breaking above its previous closing price high set the week prior. The Nasdaq is up 36.76% for the year followed by the S&P 500 up 20.42% and the Dow Industrials are up 13.90%. The top sectors in the market this week were the Amex Oil Index, the Philadelphia Oil Services Index and the Commodity Related Equity Index as Financials moved lower.

The Dow Jones Industrials started the week trading at 9,865.24 and moved to a price low of 9,815.06 before ending the week breaking above the 10,000 area. The index moved above the 10,000 area for the first time since June of 2008. Many traders have been waiting on the Dow to cross above that key psychological level. As for now the index is continuing to move higher as it is currently above its 5, 10, 32, and 50 week moving averages but below its 200 week moving average at 11,220.76. The biggest gainers on the Dow 30 were (CVX) Chevron Corp. up 5.57% followed by (UTX) United Technologies up 5.56%, (PFE) Pfizer up 5.02% (KFT) Kraft Food up 4.08% and (MCD) McDonalds up 3.67%. The Dow ended the week trading at 9,995.91 up 130.97 or 1.33% on lighter than average volume of 4.66 billion. The average weekly trading volume for the Dow is 4.93 billion.

At the Nasdaq there was more upside that came into the index as it continues to move higher for 24 of the past 32 weeks. The Nasdaq is currently above all of its weekly moving averages except for its 200 week moving average in the 2,214.96 area. Going forward a break above the 200 week moving average will be very important in order to take the index much higher. All indicators are pointing higher going into the coming week but the index must break above its previous price high in the 2,167 area set 3 weeks ago. The top Nasdaq movers were (AKAM) Akamai Technologies up 8.35%, (SCRL) Stericycle up 7.60%, (ORLY) O’Reilly Automotive up 6.67%, (ORCL) Oracle up 5.26% and (MICC) Millicom Int’l Cellular. The tech weighed index ended the week trading at 2,156.80 +17.52 or 0.82%. The average weekly trading volume for the Nasdaq is 10.9 billion as the index ended the week with lighter than average upside volume of 10.5 billion.

The Standard and Poors 500 continues its push to the upside as the general markets advance. The top movers in the S&P 500 this week were (HOG) Harley Davidson up 15.41% followed by (ICE) Intercontinental Exchange up 10.71%, (SWY) Safeway up 9.44%, (SUN) up 9.36% and (WY) Weyerhaeuser up 8.91% for the week. The index started out the week trading in the 1,071 area but moved higher to end the week breaking above its previous price high at 1,080.15 set on September 25, 2009. As for now upside resistance is above the 1,100 area with downside support at 1,038.50. The index ended the week trading at 1,087.68 up 16.19 points or 1.51% on the upside on lighter than average trading volume of 20.18 billion. The average weekly trading volume for the S&P is 21.6 billion.

In the precious metals market investors once again saw the price of the index continue to make higher highs and higher lows as it continues its monster run to the upside. The Gold index began the week trading at $1,049.00, the index then pulled back to a price low in the $1,043.60 before it continued higher. The price of gold has been on the upside for 12 of the past 14 weeks. The index is above all of its major moving averages with downside support at $1,004.11 and upside resistance at it all time price high at $1,070.70. There have been big price moves made in the price of the Philadelphia gold and silver index, the AMEX gold bugs index, as well as the (GLD) Street track gold trust shares. Due to the current downside price pressure of the dollar many investors are turning to gold as a hedge against further declines. To end the week in the gold markets the index ended the week trading at $1,052.90 up $350 or 0.33% on the upside.

As for the oil markets the index finally broke through major upside resistance above its 200 week moving average after several attempts. The index has been moving in a trading range between $58 to $75 per share for the past 24 weeks. The oil index is currently above it 5, 10, 32, 50 and 200 week moving average. This is the first time the oil index has been above its 200 week moving average since October of 2008. Due to the big price move energy stocks were the biggest movers for the week in market action as oil index ended the week trading at $79.02 up $6.77 or 9.37% on the upside.

By: Marlin Rolle

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