Sunday, June 3, 2012

Wizzwatch Weekly Newsletter

After closing the books on the last week of trading for the month of May and begin the first week of trading for the month of June all three major indices declined.

The market moved lower due to the economic crisis in Europe as well as a dismall jobs report in which there were only 69,000 jobs added, far from what analyst expected. The Dow Jones Industrial Average, the Nasdaq Composite Index as well as the Standard and Poors 500 are continuing to move lower as the market remains in a correction.

As the market declined the price of commodities such as palladium, gold, and silver advanced as the price of oil continued to pullback for 11 of the past 14 trading weeks. There was also a pullback in the price of copper as well as platinum.

The price of gold ended the week trading at $1,622.10 up $49.10 or +3.12% as silver followed to end the week trading at $28.51 up +0.12 or +0.43%. Palladium ended the week trading at $614.00 up $24.50 or +4.16%.

The (VIX) Volatility Index also known as the fear index contiues to advance and has been moving higher for the past 3 months to end the week at 26.66 up +2.60 or +10.81% as the dollar continues to advance agaianst a basket of major currency pairs. 

The price of oil ended the week trading at $83.23 per barrel down $7.47 or -8.24% on heavier than average downside volume of 1.25 million. Downside support for the oil index is at $76.25 with upside resistance at $110.60.

The top percentage gainers for the week as the market declined were (MVIS) Microvision +143.09%, followed by (TLB) Talbots +58.94%, (LCRY) Lecroy Corp. +54.92%, (BTFG) Banctrust Financial Group +50.53%, and (END) Endeavor International +48.37%.

The Dow Jones Industrial Average began the week trading at 12,454.83 and declined to a price low at 12,107.48 before ending the week trading slightly higher.

The index is currently below its 5, 10, 32, and 50 week moving averages but above its 200 week moving average. The index crossed below its 50 week moving average for the first time since December 2011. Downside support is currently at 11,231.56 with upside resistance at 13,338.70.

The top percentage gainers in the Dow 30 as the market continued to decline were (T) AT&T +0.65%, (WMT) Wal-Mart +0.37%, (DIS) Disney -0.22%, (MRK) Merck -0.99%, and (VZ) Verizon -1.01%.

The Dow Jones Industrial Average ended the week trading at 12,118.57 down -336.26 or -2.70% on lighter than average weekly downside trading volume of 2.85 billion. The average weekly trading volume for the index is 3.56 billion. For the month of May the Dow Jones was down -820.18 points or 6.21%

The Nasdaq Composite Index also continued its decline to the downside for 7 of the past 9 trading weeks. The index began the week trading at 2,853.27 and moved to a price low at 2,747.24 before ending the week trading higher.

The index is currently above its 5, 10, and 32 week moving averages, but below its 50 and 200 week moving averages. Downside support for the tech weighed index is at 2,441.48 with upside resistance at 3,134.22.

The top percentage gainers in the Nasdaq 100 this week were (GOLD) Randgold Resources +7.78%, (NTAP) Network Appliances +2.90%, (COST) Costco +1.20%, (BRCM) Broadcom +0.51%, and (AAPL ) Apple -0.23%.

The Nasdaq Composite Index ended the week trading at 2,747.48 down -90.05 or -3.17% on lighter than average downside trading volume of 7.73 billion. The average downside trading volume for the index is 8.56 billion.

In the month of May the Nasdaq Composite Index declined -219.02 points or -7.19% on declined 219.02 points in the month of May on heavier than average monthly trading volume of 41.22 billion.

As for the Standard and Poors 500 there was also a decline in the index as it continued to move lower. The S&P 500 has been moving lower for 6 of the past 9 trading weeks. The index has downside support at 1,158.60 with upside resistance at 1,422.43.

The index is currently above its 200 week moving average but below its 5, 10, 32, and 50 week moving averages. The month prior the Standard and Poors 500 index declined -87.58 points or -6.27% on lighter than average downside trading volume of 63.58 billion. The average monthly trading volume for the S&P 500 is 70.20 billion.

The top percentage gainers in the S&P 500 for the week that passed were (MON) Monsanto +3.55%, (NEM) Newmont Mining +3.03%, (NTAP) Network Appliances +2.90%, (FRX) Forest Labs +2.73%, and (DF) Dean Foods +2.61%.

As the week that passed came to and end the S&P 500 closed to end the week trading at 1,278.04 down -39.78 or -3.02% on lighter than average downside trading volume of 11.79 billion. The average weekly trading volume for the index is 13.87 billion.

By: Marlin Rolle
*** Please have a close look at the charts below ***
















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