Wizzwatch Weekly Newsletter

As the last week in January 2011 comes to a close there was a pullback in the major moving averages. The Dow Jones Industrial Average, the Nasdaq Composite Index as well as the Standard & Poors 500 declined to end the week. The Dow Jones Industrial Average declined for the first time in 9 of the past 10 weeks as the Nasdaq and the S&P 500 declined for the past 2 weeks.

There was a huge sell off in the market due to tensions in Egypt as well as lower than expected earnings in shares of (AMZN) Amazon.com and (F) Ford Motor Company. On Friday the Dow Jones Industrial Average fell -1.39% followed by the S&P 500 down -1.79% as the Nasdaq Composite Index declined -2.48%.

Earlier in the week shares of (AXP) American Express, (JNJ) Johnson & Johnson as well as (YHOO) Yahoo moved lower due to disappointing earnings as (CSX) CSX Corp., (INTC) Intel, and (NFLX) Netflix, moved higher due to better than expected earnings reports.

In the precious metals markets the gold index continued its decline. The gold index has been on a pullback for 4 consecutive weeks. The gold index began the week trading at $1,342.50 but pulled back hitting downside support in the $1.308.10 area before ending the week slightly higher. The pullback to the 1,308 area was a 3 month price low for the precious metals index. The gold index ended the week trading at $1,335.40 down $7.10 or -0.53%. A break above the $1,353.10 the price of gold will move much higher in the week ahead.

As for the Oil Index there was a slight move to the upside after a decline to a price low in the $85.29 area. Downside support for the price of oil is at $83.67 per barrel with upside resistance at $93.02. The oil index is above its 10, 32, 50 and 200 week moving averages but below its 5 week moving average in the $90.11 area. The oil index ended the week trading at $89.49 up +$0.38 or +0.43%.

The top sectors in the market this week were Oil Services +4.23%, Dj US Forestry/ Paper +3.09%, Semiconductors +1.61%, REITs +1.45%, and Hospitals +1.41%. The top percentage gainers in the market week were (TMRK) Terramark Worldwide +34.66%, (ARAY) Accuray Incorporated +29.88%, (OPLK) Oplink Communications, Inc. +23.03%, (OPNT) Opnet Technologies, Inc. +14.44%, and (SVVS) Savvis, Inc. +13.89%.

The Dow Jones Industrial Average began the week trading in the 11,873.43 area before moving to a price low in the 11,803.04 area before ending the week trading slightly higher. The Dow has been moving higher to the upside for 9 of the past 10 consecutive weeks. The index is currently above its 5, 10, 32, 50, and 200 week moving averages. Downside support for the Dow Jones Industrial average is at 11,565.50 with upside resistance at 12,020.65.

The top price movers in the Dow 30 this week were (DD) Dupont +2.86%, (CAT) Caterpillar +1.17%, (WMT) Wal-Mart Stores, Inc. +1.16%, (VZ) Verizon Communications +1.11%, and (INTC) Intel Corp. +1.04%. The Dow Jones Industrial Average ended the week trading at 11,823.70 down -48.14 or -0.14% on heavier than average downside volume of 4.52 billion. The average weekly trading volume for the Dow Jones Industrial average is 4.06 billion.

The Nasdaq Composite Index has been on a decline for the past 2 weeks after making a 52 week price high in the 2,667.17 area. Downside support for the tech weighed index is at 2,649.12 with upside resistance at 2,667.30. The Nasdaq began the week trading at 2,693.03 but moved to a price low in the 2,679.57 area before moving slightly higher. The Nasdaq is below its 5 week moving average but above its 10, 32, 50 and 200 week moving averages.

The top movers in the Nasdaq 100 this week were (NVDA) Nvdia +6.98%, (AMAT) Applied Materials +%, (QCOM) Qualcomm, Inc. +4.90%, (PDCO) Patterson Dental Co. +4.57%, and (KLAC) KLA-Tencor Corp. +4.45%. The Nasdaq Composite index ended the week trading at 2,686.89 down -2.65 points or -0.10% on heavier than average downside volume of 10.23 billion. The average weekly trading volume for the Nasdaq is 9.84 billion.

The Standard and Poor 500 continued its decline for the second week in a row as it moves toward downside support in the 1,254.72 area. The index is currently above its 5, 10, 32, 50 and 200 week moving averages with upside resistance in the 1,302.80 area. The index began the week trading at 1,283.29 before moving lower to the downside. The index hit a price low at 1,275.10 before ending the week slightly higher to the upside. In order for the S&P 500 to move higher in the week ahead the index must break above 1,302.70.

The top stocks in the S&P 500 this week were (TER) Teradyne, Inc. +18.04%, (BHI) baker Hughes, Inc. +14.11%, (GLW) Corning, Inc. +12.78%, (HAL) Halliburton Co. +12.00%, and (HP) Helmerich & Payne, Inc. + 11.34%. The Standard and Poors 500 ended the week trading at 1,276.34 down -7.01 points or -0.555 on heavier than average downside trading volume of 18.91 billion. The average weekly trading volume for the S&P 500 is 19.09 billion.

By: Marlin Rolle

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