As this week in the stock market came to a close the Dow Jones Industrial Average, the Nasdaq Composite Index, and the S&P 500 closed to end the week on the downside. There were a few stocks that moved higher to end the week due to a cease fire in Libya as well as G7 plans to weaken the Japanese Yen.
The Japanese Yen fell from historic price levels against the Euro and the U.S. Dollar, this was the first coordinated intervention by G7 members since the year 2000. As for now the stock market remains in a correction.
The top stocks in the market this week were (JVA) Coffee Holding Co., Inc. +69.52%, (NEXS) Nexxus Lighting, Inc. +40.78%, (MBND) Multiband Corp. +40.78%, (CSU) Capital Senior Living +33.36, and (SUP) Superior Industries +23.69%.
Federal Reserve chief Ben Bernanke gave banks the green light to start share buy backs and boost dividends. The 19 largest banks all increased resumed dividend payments to investors. JP Morgan Chase, Bank of America, Citigroup, Goldman Sachs, PNC Financial, US Bancorp, Sun Trust, Wells Fargo, BB&T, as well as Bank of New York Mellon all moved higher after the news.
Goldman Sachs stated that it will buy back the 5 billion dollars of preferred stock that it sold to Warren Buffet and Berkshire Hathaway. There is no surprise that Mr. Buffet is not happy being that he and Berkshire have been making $1.36 million dollars per day or $951.29 per minute from Goldman Sachs since the height of the credit crisis in September of 2008.
The Volatility Index also known as the fear index moved to a price high in the 31.28 area but pulled back slightly to end the week at 24.44. A price move above 30 will show that there are many underlying concerns in the market. As for now everything seems to be ok but the market may continue to move lower in the week ahead.
As for the price of gold and crude oil there was a pullback in price of the gold index from its all time price high in the $1,444.40 area the week prior as oil moved lower for the second consecutive week. The gold index ended the week trading at 1,418.20 per troy ounce up $1.00 or +0.07% as oil moved lower to end the week trading at $107.34 per barrel.
The Dow Jones Industrial Average began the week trading at 12,042.13 and pulled back to a price low in the 11,555.48 area before ending the week trading slightly higher to the upside. Downside support for the index is at 11,333.75 with upside resistance at 12,391.29.
The Dow has been on a continued reversal for three of the past four week as it continues to move lower. The Dow Jones Industrial Average is below its five and ten week moving averages but above its thirty two, fifty and two hundred week moving averages.
The top percentage gainers in the Dow 30 this week were (CAT) Caterpillar +5.04%, (PFE) Pfizer, Inc. +3.71%, (CVX) Chevron Corp. +2.87%, (AA) Alcoa, Inc. +0.51% and (DD) DuPont Co. +0.17%.
The Dow Jones Industrial Average ended the week trading at 11,858.52 -185.88 or -1.54% on heavier than average volume of 4.71 billion. The average weekly trading volume for the indices is 3.83 billion.
The Nasdaq Composite Index also saw a continuation of momentum to the downside as the index fell for the fourth week in a row. The Nasdaq has been moving lower for four of the past five weeks.
The Nasdaq is currently below its five and ten week averages but above its thirty two, fifty and two hundred week moving averages. Downside support for the tech weighed index is at 2,544.35 with upside resistance at 2,850.55.
The top percentage movers in the Nasdaq 100 this week were (FSLR) First Solar, Inc. +7.11%, (NTAP) Network Appliance, Inc. +2.46%, (DISH) Echo Star Communications Corp. +1.92%, (JOYG) Joy Global, Inc. +1.55%, and (INTU) Intuit, Inc. +0.93%.
The Nasdaq ended the week trading at 2,643.67 -71.94 or -2.65% on heavier than average volume of 11.31 billion. Downside volume for the Nasdaq Composite Index has been higher than average for the second consecutive week as the indices continues to move lower. The average weekly trading volume for the Nasdaq Composite Index is 9.68 billion.
The Standard and Poors 500 also moved lower as it moved below its five and ten week moving averages. This was the first time the indices moved below its ten week moving average since August of 2010.
As for now the index remains above its thirty two, fifty and two hundred week moving averages. Downside support for the S&P 500 is at 1,216.48 with upside resistance in the 1,344.17 area.
The top percentage gainers in the S&P 500 this week were (SWN) Southwestern Energy Co. +11.44%, (BTU) Peabody Energy Corp. +11.20%, (CNX) Consol Energy, Inc. +10.94%, (COG) Cabot Oil & Gas Corp. +10.11%, and (LO) Lorillard, Inc. +9.78%.
The Standard & Poors 500 ended the week trading at 1,279.20 -25.08 or -.192% on heavier than average volume of 20.22 billion. The average weekly trading volume for the S&P 500 is 17.09 billion.
By: Marlin Rolle
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