WizzWatch Weekly Newsletter

As for the week that passed in the financial markets the Dow, Nasdaq, and S&P 500 all ended the week trading on the downside. The dollar has been on a decline for the past 33 weeks helping to push the price of oil as well as metals higher. The Nasdaq is up 37% year to date followed by the S&P 500 up 21% and the Dow Jones Industrials up 14%. The top industry groups for the week were computer hardware, internet, financials, oil and reits. Airlines, biotechnology, networking and chemicals all moved lower. Companies such as (MSFT) Microsoft and (AMZN) Amazon reported better than expected earnings as the both advanced to end the week trading higher. 80% of the companies that reported earnings in the S&P 500 since the start of 3rd quarter earnings have reported better than expected announcements.

The Dow Industrial Average started out the week trading at 9,996.67 before pulling back to a low of 9,916.78 but ending the week slightly higher. Upside resistance for the Dow is at 10,119.50 as downside support is currently at 9,481.10. The Dow is above all its major moving averages except for the 200 week moving average at 11,216.21. The biggest movers in the index for the week were (STX) Seagate Technology Holdings up 1.16%, (UTX) United Technologies up 0.57%, (PG) Proctor & Gamble up 0.51%, (CAT) Caterpillar up 0.30%, and (MCD) McDonalds up 0.25% for the week. The Dow Jones Industrial Average ended the week trading at 9,972.18 -23.73 -0.24%. The average weekly trading volume for the index is 4.90 billion as the index ended the week with lighter than average downside trading volume of 4.69 billion.

The Nasdaq Composite Index ended the week on the downside as it continues to move above its 5, 10, 32, and 50 week moving averages but below the 200 week at 2,154.47. Upside support is at 2,190.64 with downside support @ 2,049.05. The top movers for the week were (AMZN) Amazon.com up 25.25%, (AAPL) Apple up 7.42%, (MSFT) Microsoft up 6.30%, (BIDU) Baidu.com, and (CHKP) Checkpoint Software up 5.72% to end the week. The Nasdaq ended the week trading at 2,154.47 -2.33 or -0.11% on heavier than average downside trading volume of 11.35 billion. The average weekly trading volume for the tech weighed index is 11.02 billion.

At the Standard and Poors 500, the index moved to the downside to end the week trading lower. The index began the week trading at 1,088.22 moved to a price low of 1,074.31 before ending the week slightly higher to the upside. The biggest movers in the S&P 500 were (AMZN) Amazon.com up 25.15%, (LXK) Lexmark Int’l up 21.84%, (SLM) SLM Holdings up 21.55%, (NYT) New York Times Co. up 20.54% and (PNC) PNC Financial up 17.38%. The index is above its 5, 10, 32, and 50 moving average but below its 200 weekly moving average at 1,245.69. The index has downside support @ 1,025.92 with resistance on the upside at 1,101.36. The S&P ended the week trading at 1,079.60 -8.08 or -0.74% on the downside with lighter than average downside volume of 21.03 billion. The average weekly trading volume is 21.55 billion.

The Gold Index continued to push its way to the upside for the past 13 of 15 weeks. As for now the index seems to be setting up to move in a sideways consolidation. If the index breaks above the previous all time high the price of gold will definitely continue to move higher. The index is currently above all of its major moving averages with downside support at $1,001.05 per ounce. Upside resistance for the index is at its all time price high at $1,070.70 per ounce. To end the week in trading the gold index closed at $1,055.20 per ounce, up +$2.30 or +0.22% on the upside.

As for the price of oil there was a continued move to the upside for the fourth consecutive week in a row. The index has been on a move higher for the past four weeks as the dollar continued to decline taking the price of oil as well as the precious metal indices much higher. Oil is now above all its major moving averages. The next level of upside resistance is in the $110.50 per barrel area with downside support at $68.05 per barrel. The OPEC secretary general Abdullah al-Badri stated that move this week in the price of oil to $80 per barrel was “a bit high” given the state of the world economy. Secretary General al-Badri also stated that OPEC may raise outputs in December depending if there is, or is not an increase in crude inventories as well as real economic growth. Months earlier many analyst predicted that $75 was a fair price for a barrel of oil. The index ended the week with a doji candlestick price pattern. A doji represents indecision in the price of a stock or indices so we may see oil either move to the upside or to the downside in the week ahead. Most likely we will see a move to the downside. Oil ended the week trading at $80.50 up +$1.48 or +1.87% higher.

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