As we put a cap on the first week of December in the stock market there was a pre Santa Clause rally as the markets moved higher. The Dow Jones Industrial Average, Nasdaq Composite Index as well as the Standard and Poors 500 all advanced after moving lower the week prior.
As for now the The market is continuing the process of correcting itself. The Dow Jones Industrial Average is 1,614.93 points away from its price low set in September and 856.58 below it 52 week price high set in April of 2011.
The upside momentum in the markets this week were due to the global coordination of the Central Banks as well as policy making officials in Europe to stabilize the debt crisis as well as the Chinese government cutting the proportion of reserve capital needed to be held by banks.
Due to better than expected US economic data there has been less concern of any type of recessionary concerns for now. Job data released earlier this week showed an improvement, payrolls climbed 120,000. The jobless rate declined to 8.6 percent, the lowest since March 2009, from 9 percent.
The top industrial indices to move higher this week as the market advanced were Disk Drives +12.01%, Banks +10.57%, Brokers +10.46%, Dow Jones Forestry/Paper +10.20%, and Commodity Equities +10.15%.
The top percentage gainers this week as the market continued to move higher to the upside were (SXL) Sunoco Logistics Partner +109.96%, (MAGS) Magal Security Systems +74.05%, (DFR) Deerfield Capital +65.69%, (CEDC) Central European Distribution +63.73%, and (NCTY) The 9 Limited.
As for commodities there was a jump in prices across the board as gold, silver, copper, palladium, platinum and oil all moved higher. The gold index closed to end the week trading at $1,748.00 per troy ounce up $65.10 or +3.87% as oil closed to end the week trading at $100.99 per barrel up $3.69 or 3.79%. Oil is $13.84 away from its April price high at $114.83 per ounce.
There was a decline in the price of the US Dollar against a basket of major currencies after moving higher to the upside for 2 of the past 3 weeks as the Volatility Index continued to slump due to the upside momentum in the market. The Volatility Index ended the week trading at 27.27 down -6.95 or 20.16% as the US Dollar closed to end the week trading at 78.62.
The Dow Jones Industrial Average began the week trading at 11,232.47 but declined to a price low in the 11,232.46 area before ending the week trading higher to the upside snapping a 2 week losing streak. This week was the biggest weekly points gained since the week period ended October 31, 2008, the second largest weekly point gain in the history of the exchange as well as the biggest weekly percentage gained since July 17, 2009.
The Dow Jones Industrial Average is currently above its 5, 10, 32, 50 and 200 week moving averages as it continues to move higher to the upside. As for now downside support is at 10,404.38 with upside resistance at 12,876.11.
The top percentage gainers in the Dow 30 this week were (JPM) JP Morgan Chase +13.52%, (CAT) caterpillar +11.04%, (AA) Alcoa +10.73%, (HD) Home Depot +10.36%, and (CVX) Chevron +10.19%.
The Dow Jones Industrial Average closed to end the week trading at 12,019.42 up 787.64 points or 7.01% on heavier than average trading volume of 4.74 billion. The average weekly volume for the Dow Jones Industrial Average is 4.34 billion.
At the tech weighed Nasdaq Composite Index there was also an advance in the indices after 4 weeks of declines. As for now the Nasdaq is poised to move higher to the upside but must breakout above the 2,753.41 area. As for now the index is above its 10, 32, 50 and 200 week moving averages but below its 5 week moving average. Downside support for the Nasdaq is at 2,298.87 with upside resistance at 2,887.86.
The top percentage gainers in the Nasdaq 100 were (FSLR) First Solar +18.48%, (FFIV) F5 Networks +15.16%, (LRCX) Lam Research +14.94%, (JOYG) Joy Global +14.68%, and (ADSK) Autodesk +13.99%.
The Nasdaq closed to end the trading week at 2,626.93 up 185.42 points or 7.59% on lighter than average upside volume of 9.07 billion. The average weekly trading volume for the Nasdaq Composite Index is 9.56 billion.
As for the Standard and Poors 500 the index has been moving higher to the upside for 3 of the past 5 trading days. The index had its biggest weekly rally since March of 2009 after action was taken by the Central Banks to ease the European debt crisis. Since November 25 the S&P 500 is up 7.4%.
The index began the week trading at 1,158.67 before declining to a price low at 1,158.76 but ending the week trading higher to the upside. As for now the index is above its 5, 10, 32, and 200 week moving average but slightly below its 50 week moving average at 1,269.23.
In order for the Standard and Poors 500 to advance higher to the upside, an advance above the 50 week moving average at 1,269.23 as well as the previous price high at 1,292.66 will need to be broken.
The top percentage gainers in the S&P 500 were (WDC) Western Digital +25.76%, (X) US Steel +24.88%, (GNW) Genworth Financial +20.04%, (ODP) Office Depot +19.93%, and © Citigroup +19.21%.
The Standard and Poors 500 ended the week trading at 1,244.28 +85.61 or +7.39% on lighter than average upside trading volume of 16.01 billion. The average weekly trading volume for the Standard and Poors 500 is 16.43 billion.
By: Marlin Rolle
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