WizzWatch Weekly Newsletter

After last week’s Dubai debt crisis many traders thought the markets would have been heading a lot lower. To end the week the Dow Jones Industrial Average, the Nasdaq, and the S&P 500 all moved higher. Weekly volume for the week was up across the board. The U.S. lost 11,000 jobs in the month of November its lowest drop since the start of the recession. There may be more hiring in the near future if the job numbers continue to improve going forward coming from a high in January of 800,000 jobs being lost. There was a loss of 11,000 jobs in November its lowest fall since the start of the recession. Due to the labor report surprise its helped push the price of the dollar a lot higher as gold and oil moved lower. Gold stocks were the worst performers as airlines, transports, disk drives, reits, and telecommunication stocks moved higher.

The Dow Jones Industrials have been moving in a sideways consolidation for the past three weeks. Upside resistance is at 10,439.00 with downside support at 10,034.43. The index is currently above its 5, 10, 32, and 50 week moving averages but below its 200 week moving average at 11,196.30. The index moved slightly to the upside to end the week but needs to break through upside resistance in order for the index to move higher. All indicators point to a higher move on the index in the week ahead. The top movers in the Dow 30 were (STX) Seagate Technology, (VZ) Verizon, (AA) Alcoa, (HD) Home Depot, and (DTV) Direct TV Group. To end the week the Dow Jones Industrials closed at 10,388.90 +78.98 or 0.77% on lighter than average upside trading volume of 5.29 billion. The average weekly trading volume is 5.30 billion.

At the Nasdaq Composite there was an advance as the index ended the week trading on the upside after two weeks of price declines. The index is above all of its major moving averages but below its 200 week moving average at 2,210.29. A break above the 200 week moving average would take the Nasdaq even higher. The top movers in the Nasdaq 100 as the week came to an end were (MRVL) Marvell Technology Group, (KLAC) KLA-Tencor, (LRCX) Lam Research, (STX) Seagate Technology, and (CMCSA) Comcast Corp. The Nasdaq ended the week trading at 2,194.35 +55.91 or 2.61% on the upside on lighter than average upside volume of 10.51 billion. The average weekly volume for the Nasdaq is 10.65 billion.

The Standard and Poors 500 began the week trading at 1,091.07 and moved as high as 1,119.13 but closed slightly lower. Downside support for the S&P 500 is at 1,047.76 with upside resistance at 1,133.50. The index has been moving on the upside for 26 of the past 40 weeks since March. The top movers in the S&P this week were (BIG) Big Lots, (RHI) Robert Half, (MWW) Monster Worldwide, (KLAC) KLA –Tencor, and (NVLS) Novellus Systems. The S&P ended the week trading at 1,105.98 +18.71 +1.72% on volume of 19.48 billion. The average weekly trading volume for the S&P 500 is 21.18 billion.

In the precious metal markets there was a pullback in the price of gold after weeks of upside momentum. As the week came to end gold was one of the worst decliners for this week. The index has been on the upside for 17 of the past 21 weeks. Since the break of its March 2008 price high at $1.030.90 per troy ounce the index has been making higher highs and higher lows for the past 9 weeks. The index ended the week trading lower as the dollar turned to the upside after several weeks of declines. The gold index ended the week trading at $1,162.40 per troy ounce -15.40 or -1.31%.

As for the oil index there was a break of its 5, 10 and 200 week moving averages pushing the index much lower to the downside after 6 weeks of sideways consolidation. Upside resistance at for the oil index is at $82.01 with downside support at $68.77. The oil index began the week trading at $76.05 before ending the week much lower. Due to the surprise in the job numbers and a fall in the price of gold as well as the upside move in the price of the dollar we may continue to see oil move slightly lower in the near term. The oil index ended the week trading at $75.47 -0.58 or -0.76%.

By: Marlin Rolle

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