WizzWatch Weekly Newsletter

As we close the the door on the year 2009 in the stock market the Nasdaq led the way closing to end the year up 43.9%. The S&P 500 came in second place ending the year up 23.5% followed by the Dow Jones Industrials up 18.8%. Based on percentage gains the year 2009 was the best year in the stock market since 2003. Going forward at some point the stock market will have to correct itself after such huge gains. The market is due for a 10% to 20% correction. Many have said in the past that the market has moved to far to fast, but know one knows when the market will pullback. Its time for investors to get defensive. If the volatility index breaks above 30 that will be a confirmation of a pullback in the stock market. We have not seen a major pullback in the market since its huge upside run up in price since March 2009.

To end the last week in the market for the year 2009 all three major indices ended the week on the downside. The Dow Jones Industrial Average, the Nasdaq and the S&P 500 all ended the week trading lower after making new price highs the week prior. The oil index ended the week on the upside as the price of gold continued to move lower after making an all time price high at $1,226.40 four weeks prior. The top industry groups for the week were biotechnology, disk drives, networking, airlines and financials. Telecommunications, gold, silver, and oil services all moved lower. The top market movers in the stock market were (QUIX) Quixote Corporation up 148%, followed by (ICXT) ICX Technologies up 91%, (FCEC) First Chester County Company up 66%, (EONC) EON Communications Corp. up 45%, and (OSIS) OSI Systems, Inc. up 23%.

The Dow Jones Industrial Average has been on a huge run up in price as it continues to make higher highs and higher lows. The Dow Industrials have been on the upside 27 of the past 43 weeks since March of 2009. The index is currently above its 5, 10, 32, and 50 week moving average but below the 200 week moving average at 11,184.46. The biggest movers in the Dow 30 were (STX) Seagate Technology, (DIS) Walt Disney Co. , (AA) Alcoa, (DD) Dupont and (JPM) J.P. Morgan Chase Company. The Dow Jones Industrials ended the week trading at 10,428.05 down -92.05 or -0.87% on lighter than average downside volume of 1.67 billion. The average weekly trading volume for the Dow Jonwes Industrial Average is 4.93 billion.

At the tech weighed Nasdaq Composite Index there was also a pullback in the index after several weeks of upside momentum. The Nasdaq has been on the upside for 30 of the past 44 weeks. The index made a new price the week prior but ended this week
trading much lower. The Nasdaq is currently above its 5, 10, 32, 50 and 200 week moving averages. Downside support for the index is at 2,176.11 with resistance on the upside at 2,295.80. The top movers in the Nasdaq this week were (NVDA) Nvidia Corp., (CEPH) Cephalon, (LCRX) Lam Research, (STX) Seagate technology and (NTAP) Network Appliances. To end the week in the market the Nasdaq ended trading at 2,269.15 down -16.54 or -0.72% on the downside. The aveargae weekly volume for the Nasdaq is 10.2 billion as the index ended the week with lighter than average volume of 4.96 billion.

As for the Standard and Poors 500 the index ended the week trading on the downside after weeks of upside momentum. The index is above all of its major moving averages but below its 200 week moving average at 1,236.56. Downside support for the S&P 500 is at 1,093.41 with upside resistance at 1,130.40. The top movers in the index this week were (MU) Micron Technology, (NVDA) Nvidia Corp., (HRB) H&R Block, (GS) Goldman Sachs Group and (MOV) Movado. To end the last week of the year the S&P 500 closed at 1,115.10 down -11.38 or -1.01% with lighter than average volume of 7.62 billion. The average weekly trading volume for the S&P 500 is 20.31 billion.

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