Wizzwatch Weekly Newsletter

As this week in the stock market came to a close, it was the beginning of what many traders call sell in May and go away. Historically every year the market starts to sell off in the month of May before picking back up in mid October as stocks in the energy and commodity sectors advance. The stock market had a very wild week with the (VIX) Volatility Index, also known as the fear indicator making a huge move to the upside, its biggest upside move since September of 2008. There was also an increase in jobs as the U.S. economy added the most jobs in 4 years, the jobless rate grew by 9.9% as the U.S. Government added 60,000 and private employers added another 230,000jobs.

The stock market ended the week with the Dow Jones Industrial Average, the Nasdaq and the S&P 500 all taking a dive moving lower. All three indices continued lower for the second straight week as the price of oil moved lower and the price gold moved higher to the upside closing very close to an all time price high. The price of the dollar continues to move higher against a basket of currency pairs as the Euro hits an 18 month price low. Due to the pullback in the market investors as well as stock pickers and professional traders alike must now search for new trends in order to make money in the market going forward. The top stocks for the week were (PCBC) Pacific Capital Bancorp +39.43% followed by (HTRN) Healthronics +35.21%, (FORD) Forward industries +31.85%, (BIOD) Biodel +27.11% and (UPI) Uroplasty Incorporated +25.65%.

At the Dow Jones Industrial Average there was a pullback in the index for the second straight week. The index is currently below its 5, 10, 32, and 200 week moving averages but above its 50 week moving average. Downside support for the Dow Jones Industrial Average is at 9,909.40 with upside resistance at 11,258.01. The top stock movers in the Dow 30 were (KFT) Kraft Foods up +0.57%, followed by (PFE) Pfizer down -1.67%, (DTV) Direct TV Group -1.99%, (KO) Coca Cola Co. -2.03% and (WMT) Wal Mart Stores -2.49%. The Dow Jones Industrials ended the week trading at 10,380.43 -628.18 or -5.71% on the downside on heavier than average trading volume of 6.44 billion. The average weekly trading volume for the Dow Jones Industrial average is 4.39 billion.

The Nasdaq Composite Index also had a huge pullback during the week taking the index lower. The Nasdaq has been trading to the upside for 11 of the pass 14 weeks. The decline in the price of the Nasdaq has brought the index down to where its traded at 12 weeks prior. The Nasdaq is above its 32, 50, and 200 week moving averages but below its 5, and 10 week moving averages. The top stock movers in the Nasdaq 100 were all on the downside starting with (FISV) Fiserv, Inc -2.11%, (COST) Costco -3.03%, (ESRX) Express Scripts -3.29%, (GILD) Gilead Sciences -3.47%, and (ADBE) Adobe Systems -3.51%. As the week came to a close the Nasdaq ended the week trading at 2,265.64 -195.55 or -7.95% on the downside with heavier than average volume of 17.27billion. The average weekly trading volume for the Nasdaq is 12.04 billion.

The Standard and Poors 500 began the week trading at 1,188.58 but pulled back to a price low in the 1,065 area before ending the week trading higher on the upside. Downside support for the S&P 500 is at 1,065.29 with upside resistance in the 1,219.80 area. The index is currently below its 50 week moving average but below its 5, 10, 32, and 200 week moving averages. The top stock movers in the S&P 500 this week were (FIS) Fidelity National Information Services, (DPS) Dr. Pepper Snapple Group, (KFT) Kraft Foods +0.57%, (KMB) Kimberly Clark Corp. -0.25%, and (TDC) Teradata Corp. -0.44%. The S&P 500 ended the week trading at 1,110.88 down -75.81 or -6.39% on heavier than average trading volume of 30.8 billion. The average weekly trading volume for the S&P 500 is 21.12 billion.

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