WizzWatch Weekly Newsletter

As for the week that was in the stock market the Dow Jones Industrial Average, the Nasdaq and the S&P 500 all ended the week on the upside for the second week in a row. The Dow Industrials are up 17.02% for the year, the Nasdaq up 37.47%, and the S&P 500 up 21.06%. Consumer confidence fell for the second straight month as unemployment continues to rise. The top sectors for the week were computer hardware, networking, internet, disk drives, and chemicals as financials and oil related stocks declined to end the week lower. The top stocks for the week were (NLST) Netlist, (EWBC) East West Bancorp, (REV) Revlon, (COMS) 3Com Corp. and (CAAS) China Automotive System to name a few.

The Dow Jones Industrial Average started the week trading at 10,020.62 but ended the week trading higher on the upside. The index has been up for 24 of the past 36 weeks as it continues to make higher highs and higher lows. Many traders and investors have been waiting on a pullback in the price of the market but it has been on a continued run to the upside. The Dow Jones Industrials is currently above its 5, 10, 32, and 50 week moving averages but below its 200 week moving average at 11,203.06. The next move for the Dow is to break above upside resistance in the 10,380.00 area in order for the index to move higher in the near term. The top weekly movers in the Dow 30 that helped to push the index much higher were (STX) Seagate Technology up 6.16%, (DIS) Walt Disney Co. up 4.97%, (DTV) Direct TV Group up 4.38%, (AXP) American Express up 3.30%, and (WMT) Wal-Mart Stores up 2.31%. The index ended the week trading at 10,270.47 up 247.05 points or 2.46% on the upside on lighter than average weekly volume of 3.75 billion. The average weekly trading volume for the Dow Jones Industrial Average is 4.7 billion. Upside resistance is in the 10,380.00 area as downside support sits in the 9,053.18 area.

The Nasdaq Composites Index has been on a huge run up in price for the past 27 of 36 weeks. The Nasdaq is poised to move higher but would need to break above upside resistance in order for the index to continue its run up. The Nasdaq started out the week trading at 2,128.46, but pulled slightly lower before ending the week higher for the second straight week. The index is above all of its major moving averages except for the 200 week moving average in the 2,211.97 area. As for now upside resistance is slightly below its 200 week moving average at 2,190.64 with downside support in the 1,923.91 area. Volume has picked up for the second time in the past week but slightly below average. The average weekly trading volume for the Nasdaq is 11.01 billion as the index ended the week with lighter than average volume of 9.94 billion. The top weekly movers in the Nasdaq 100 tech weight index were (COMS) 3Com Corp. up 36.79%, (WYNN) Wynn Resorts up 8.59%, (GRMN) Garmin up 8.01%, (SHLD) Sears Holdings Corp. and (JAVA) Sun Microsystems up 5.22%. The Nasdaq ended the week trading at 2,167.88 up 55.44 points or 3.62% on the upside.

At the Standard and Poors 500 there was also another week of gains as the index continued it move to the upside. Downside support for the S&P is at 975.05 as upside resistance is in the 1,101.36 area. The top S&P 500 movers for the week were (AMD) Advanced Micro Devices up 25.34%, (JDSU) JDS Uniphase Corp. up 9.94%, (DOW) Dow Chemical up 9.88%, (PLD) Prologis Trust up 9.68%, and (WYNN) Wynn Resorts up 8.59%. The S&P is currently above all of its 5, 10, 32, and 50 week moving average but below its 200 in the 1,242.58 area. If all three major indices break above the psychological 200 week moving averages level, all three will continue to advance. As for now what we need to see going forward is a break to the upside above resistance on heavier than average volume. The S&P 500 ended the week trading at 1,093.48 up 24.18 or 2.26% on the upside on lighter than average volume of 17.1 billion. The average weekly trading volume for the S&P 500 is 21.3 billion.

In the precious metals market we once again saw a huge spike in the price of the gold index as it made another price high for the fourth time in less than a month. Gold has been on the run for the past 21 weeks as it continues to make higher highs and higher lows. The index began the week trading at $1,098.60 per ounce but moved much higher as the week came to a close. The price of gold continues to advance as the U.S. Dollar slides for the past 36 weeks since March of this year. As the dollar gets weaker we will continue to see the price of gold move higher. The gold index is currently above all of its major moving averages and is poised to move higher due to the state of the economy. To end the week the price of gold closed at $1,119.20 per ounce up $24.00 or 2.19% higher.

After a run up in the price of oil five weeks ago the index broke through upside resistance above its 200 week moving average but has been moving in a sideways consolidation pattern ever since. The oil index has been trading between the price high of $82.00 to a low in the $76.20 area. Upside resistance is currently at $82.00 with downside support at $67.57. The index is poised to move higher but there is little demand for oil as consumers continue to make cut backs due to the economic conditions worldwide. The index began the week trading at $77.87 per barrel before moving to a price high of $80.70 per barrel but ending the week trading much lower. The oil index ended the week trading at $77.03 -0.40 -0.52%.


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