As we close the door on the month of May and enter into the month of June the stock market continues to decline. The Dow Jones Industrial Average, the Nasdaq Composite Index and the S&P 500 have been moving lower as the market remains in a correction.
The top percentage gainers this week as the market continued to move lower were (AGYS) Agilysys +61.09%, (SPEXD) Spherix, Inc. +56.86%, (HIL) Hill International +53.53%, (CV) Central Vermont Public Service Corp. +40.63%, and (ATV) Acorn International +33.64%.
The market has been on a five week losing streak for the first time since July of 2004. There was a pullback in the price of the dollar for the third consecutive week as it declined against a basket of major currencies.
The price of oil and silver continued to move lower during the week as gold ended the week trading slightly higher. The oil index closed to end the week trading at $100.74 per barrel down $0.23 or -0.23%.
The gold index advanced higher to the upside for the third consecutive week in a row to end the week trading at $1,541.98 per troy ounce up $5.98 or +0.39%. The gold index is $26.92 from a new all time price high at $1,568.90.
The pullback in the market this week was due to the weak job numbers as well as history repeating itself once again. Historically the market is sold off in the month of May and does not turn around until the middle of October early November.
This is known too many investors as “sell in May and go away.” It's the time of the year that investors move into cash and get out equities until the market completely turns around and corrects its self. This is a stock pickers market. In other words if you dont understand the way the market works take a break.
The top sectors in the market this week were Biotechnology +0.46% followed by Pharmaceuticals -0.63%, Oil Services -1.27%, Natural Gas -1.29%, and Utilities -1.35%.
The Dow Jones Industrial Average began the week trading at 12,443.40 but moved to a price low in the 12,104.03 area before ending the week trading slightly higher.
The Dow Jones Industrials has been moving lower for the past 5 weeks after making a new 52 week price high at 12,876.00 on April 29, 2011.
The index is currently below its 5 and 10 week moving averages, but above its 32, 50, and 200 week moving averages. Downside support for the index is at 11,955.59 with upside resistance in the 12,876.10 area.
The top percentage gainers in the Dow 30 this week were (JNJ) Johnson & Johnson +0.87%, (TRV) Travelers Cos., Inc. -0.05%, (PFE) Pfizer, Inc. -0.29%, (PG) Proctor & Gamble Co. -1.15%, and (HPQ) Hewlett Packard Co. -1.20%.
The Dow Jones Industrial Average ended the week trading at 12,151.26 -290.32 -2.33% on lighter than average downside trading volume of 2.78 billion. The average weekly trading volume for the index is 3.48 billion.
At the tech heavily traded Nasdaq Composite index there was a continued decline in the price of the index for the fifth consecutive week.
The Nasdaq is now below its 5 and 10 week moving averages as it moves towards downside support. The index is above its 32, 50 and 200 week moving average upside resistance in the 2,887.80 area with downside support at 2,711.90.
The top percentage gainers in the Nasdaq Composite Index this week were (APOL) Apollo Group, Inc. +15.56%, (LOGI) Logitech Int’l. +6.99%, (MRVL) Marvell Technology Group, Ltd. +4.05%, (MIICF) Millicom Int’l Cellular +3.36%, and (ATVI) Activision Blizzard, Inc. +3.14%.
The Nasdaq ended the week trading at 2,732.78 -64.08 -2.29% on lighter than average downside volume of 8.56 billion. The average weekly trading volume for the tech weighed index is 9.43 billion.
As for the Standard and Poors 500 there was also a decline in the index for the fifth straight week. The S&P 500 began the week trading at 1,331.10 before ending the week trading lower. The Index is currently above its 32, 50, and 200 week moving averages but below its 5 and 10 week moving averages.
The top percentage gainers in the S&P 500 to move higher as the index declined were (APOL) Apollo Group, Inc. +15.56%, (DV) Devry, Inc. +12.68%, (NYT) New York Times Co. +6.19%, (API) Advanced Photonix, Inc. +4.46%, and (FRX) Forest Laboratories, Inc. +3.94%.
The Standard and Poors 500 ended the week trading at 1,300.16 -30.94 -2.32% on lighter than average downside trading volume of 11.7 billion. The average weekly downside trading volume for the S&P 500 is 15.01 billion.
By: Marlin Rolle
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