WizzWatch Weekly Newsletter

As this week came to a close in the stock market there was a slight advance in the price of the Dow Jones Industrials and the Standard and Poors 500 as the Nasdaq moved lower. The Nasdaq is up 2.13% for the month of December followed by the Dj. Industrials up 1.22%, and the S&P 500 up 0.98%. The price of gold and silver moved lower this week along with crude oil as the dollar continued to mover higher against a basket of major currencies. There was also better than expected retail sales reported on Friday to end the week that helped to push the shares of a few retailers higher. The top industry that moved to the upside this week airlines up 6.09%, utilities up 3.13%, healthcare up 0.95%, transports up 0.63%, and computer hardware up 0.54%.

The Dow Jones Industrial Average has been on a move to the upside for the 5 of the past 6 weeks as it continues to moves above its 5 week moving average. The index is above its 5, 10, 32, and 50 week moving averages but below its 200 week moving average in the 11,194.07 area. The index is poised to move higher in the week ahead but will need to break above upside resistance at 10,439.00. The biggest movers in the Dow 30 this week were (AA) Alcoa up 11.95%, (DIS) Walt Disney Co. up 3.46%, (AXP) American Express up 3.35%, (KO) Coca Cola up 2.14%, and (IBM) International Business Machines up 2.07%. To end the week the Dow Jones Industrials ended the week trading at 10,471.50 +82.60 +0.80% on lighter than average volume of 4.01 billion. The average weekly trading volume for the Dow jones Industrial Average is 5.23 billion.

The Nasdaq Composite Index moved lower in the week that passed as the index pulled back after weeks of upside momentum. The index crossed the 2200 for the first time in months but ended the week slightly lower. The top performers in the Nasdaq 100 index were (RIMM) Research In Motion up 5.91%, (SBUX) Starbucks up 4.67%, (APOL) Apollo Group up 4.18%, (NWSA) news Corp up 4.08% and (STLD) Steel Dynamics up 4.01%. The index has been on the upside for 26 of the past 40 weeks as it continues to make higher highs and higher lows. As for now there is upside resistance at the 200 week moving average at 2,209.93 with downside support at 2,183.80. The index will need to break above it 200 week moving average in order to move higher. The Nasdaq ended the week with a doji candle stick in which represents indecision in the price of a stock or indicies. At the open of trading on Monday we may see the Nasdaq move higher to the upside or to the downside on Monday. The index ended the week trading at 2,190.31 down -4.04 points or 0.18% for the week on lighter than average downside volume of 9.46 billion. The average weekly trading volume for the index is 10.60 billion.

At the Standard and Poors 500 there was an uptick in the price of the index as it moved higher to end the week trading on the upside. The S&P has been on a run up in price for 25 of the past 40 weeks. The index is currently above its 5, 10, 32, and 50 week moving averages but is still moving below its 200 week moving average in the 1,239.20 area. As for now there is still a long way to go before we get to that area but in do time we will get there but no one know the answer to when. The top price gainers in the S&P 500 this week were (GCI) Gannett Co. up 19.1%, (AA) Alcoa up 11.95%, (IPG) Interpublic Group up 10.53%, (LUV) Southwest Airlines up 8.03% and (PLL) Pall Corp. up 7.98%. The S&P 500 ended the week trading at 1,106.41 up 0.43 points or 0.04% on the upside on lighter than average volume of 17.55 billion. The average weekly trading volume for the Standard and Poors 500 is 21.04 billion.

The gold index had a rough week this week due to the price of the dollar moving higher. The index has been on the decline for the past 2 weeks after reaching an all time price high at $1,226.40 per troy ounce. The index has been on a huge run up coming from a price low of $681.00 per troy ounce in October 2008. as for now the index is poised to move higher as it holds above its 10 week moving average in the $1,102.05 area. Downside support for the index is at $1,068.37 with upside resistance at its all time price high. As long as the dollar continues to move higher we may see the price of gold continue to decline in the near term. The gold index ended the week trading at $1,115.20 per troy ounce down $47.20 or 4.06%.

In the oil markets there was also a huge pullback in the price of black gold as the dollar continued its price advance. The oil index moved to the downside this week after moving in a sideways consolidation closing tightly for the past 6 weeks in a row, The index broke below its 5, 10, and 200 week moving averages this week but remain above its 32 and 50 week moving averages. Downside support for the tech weighed index is at $61.95 with upside resistance above $82.00. If the dollar continues to move to the upside there will be more pressure in the oil markets that will take oil stocks much lower in the near term. Oil was the second worst performing industry groups this week down 1.46% as the index ended the week trading at $71.95 per barrel down $3.52 or 4.66%.

*** Please have a look at the chart below ***