Wizzwatch Weekly Newsletter

As the second to the last week in 2010 came to a close in the stock market this week all three major indices closed to end the week on the upside. The Dow Jones Industrials, Nasdaq Composite Index and the Standard and Poors 500 all ended the week in positive territory.

The Top Industry groups that helped to push the market higher were Biotechnology +8.59%, Banks +4.63%, REITs +3.39%, Disk Drives +2.54% and Commodity Related Equities +2.39% for the week. The top stocks in the market this week were (RPRX) Repros Therapeutics +82.27% followed by (XOMA) Xoma, Ltd. +59.11%, (JAS) Jo Ann Stores, Inc. +43.10%, (SNIC) Sonic Solutions +31.91%, and (TRR) Trc Companies, Inc. +25.56%.

The U.S. Dollar continued to advance higher to the upside against a basket of major currency pairs for 6 of the past 8 weeks. As for the price of oil the index continued to move higher for 11 of the past 18 weeks. The oil index is currently at a 52 week price high as it ended the week trading at $91.51 per barrel up +$3.14 or 3.55% higher. Oil may continue to run up higher until into the summer of 2011 and we may even see the price of a barrel of oil move above the multi year high price that was made in July 2007 above $147.90 per barrel.

The price of Gold began the week trading at $1,376.20 per troy ounce but ended the week trading at $1,379.70. The price of gold is poised to move higher in the week ahead but must break above $1,391.75 in order to move higher to the upside. The gold index ended the week trading at $1,374.40 per troy ounce down $11.40 or -0.85% after making a multiyear price high during the first week of December at $1,430.60 per troy ounce. Downside support for the Gold Index is in the 1,282.53 area with upside resistance in the 1,415.00 slightly below its multiyear price high at $1,430.60.

The Dow Jones Industrial Average began the week trading at 11,491.30 and moved to a low in the 11,442.91 area before ending the week trading higher. The index remains above its 5, 10, 32, 50 and 200 week moving averages. Downside support for the Dow Jones Industrial Average is in the 10,674.39 area with upside resistance in the 11,580.84 area.

The top stocks that helped to move the Dow 30 much higher this week were (AA) Alcoa +6.09% followed by (JPM) J.P. Morgan Chase & Co. +5.17%, (BAC) Bank of America +4.31%, (GE) General Electric Co. +2.33%, and (PFE) Pfizer, Inc. +2.32%. The Dow ended the week trading at 11,573.49 up 81.58 points or +0.71% on lighter than average upside trading volume of 2.39 billion. The average weekly trading volume for the Dow Jones Industrial Average is 4.19 billion.

At the Nasdaq Composite Index there was a continuation of upside momentum in the index as it continued to move higher to the upside. The Nasdaq has been moving higher for 14 of the past 17 weeks. The Nasdaq is currently above its 5, 10, 32, 50 and 200 week moving averages. Downside support for the index is in the 2,354.93 area with upside resistance in the 2,675.26 area. The Nasdaq is currently at 3 year price highs and is poised to move higher in the near future.

The top stock movers in the Nasdaq 100 this week were (ADBE) Adobe Systems +10.53%, (AMAT) Applied Materials, Inc. +6.06%, (DISH) Echo Star Communications Corp. +5.89%, (HOLX) Hologic, Inc. +5.85%, and (FWLT) Foster Wheeler Corp. +5.38%. The Nasdaq ended the week trading at 2,665.60 up 22.63 points on lighter than average upside volume of 6.23 billion. The average weekly trading volume for the tech weighed index is 10.17 billion.

The Standard and Poors 500 began the week trading at 1,245.76 before moving to a price low in the 1,241.51 area before ending the week much higher. Downside support for the S&P 500 is in the 1,136.15 area with upside resistance in the 1,259.39 area. As for now the index remains to move above its 5, 10, 32, 50 and 200 week moving averages.

The top stocks in the Standard and Poors 500 this week were (JBIL) Jabil Circuit, Inc. +16.82%, (MI) Marshall & Ilsley Corp. +15.03%, (ODP) Office Depot +14.51%, (STI) Suntrust Banks, Inc. +10.94%, and (CF) CF Industries Holdings, Inc. +10.84%. The Standard & Poors 500 ended the week trading at 1m256.77 up 12.86 points on lighter than average upside volume of 10.53 billion. The average weekly trading volume for the S&P 500 is 18.74 billion.

By: Marlin Rolle
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