WizzWatch Market Newsletter

As the week that passed came to an end in the financial markets the Dow Jones Industrial Average, as well as the Standard and Poors 500 closed to end the week lower as the Nasdaq Composite Index closed to end the week on the upside. The month is not over yet but it seems to be one of the worst Septembers in many years. 

The Dow Jones Industrial Average began the week trading at 27,484.71 but moved higher as the week continued to close at 27,173.96 down -484.46 points or -1.75% on heavier than average trading volume of 2.2 billion. The index has been moving lower for the past 4 weeks. 

The top stocks in the index for the month were (CRM) Sales force.com +12.35%, (NKE) Nike +11.41%, (WMT) Walmart +5.08%, +(CAT) Caterpillar +3.37% and (MCD) McDonals Corp. +2.60%. 

Over at the Nasdaq the week was much more positive as the index closed higher. The tech heavy index closed to end the week trading to the upside for the first time in in the past four weeks. Volume in the index is showing that the markets maybe turning around as we are still in a market that is trying to correct it self after the declines. 

As the week came to a close the index closed to end the week trading at 10,913.56 +120.28 or +1.11% on heavier than average trading volume of 19.2 billion, The average trading volume for the index is 17.2 billion. The index is currently 3.53% away from its all time closing price high set in August at 11,313.14.

At the S&P 500, there was a continued decline as the index moved to a major weekly support level at 3,227.78, but closed to end the week trading higher. That move basically shows that there maybe a reversal in the week ahead after four consecutive weeks of declines in the general market. Another indication of a reversal is the fact that the index ended the week with a long shadowed Japanese candlestick that shows that there were more buyers than seller in the market during the week. 

The S&P 500 closed to end the week trading at 3,298.46 -21.01 or -0.63% on lower than average downside volume of 12.35 billion. The average trading volume for the index is 12.6 billion in which is a third sign that the bears maybe leaving the markets in order for the bulls to take over.

As for commodities the price of gold, silver as well as oil all declined to end the trading week lower. The price of gold ended the week trading at $1,866.30 per troy ounce down -$95.80 or -4.88%. Silver took a huge dive falling from a price high of $27.13 per ounce to end the week trading at $23.09 down -$4.04 or -14.88% on heavier than average downside volume at 68.8 million. The average downside trading volume for the silver index is 46.3 million.

The price of oil declined worldwide as the Brent Crude Oil Index fell -2.91% to end the week trading at $42.41 per barrel followed by the (WTIC) West Texas Intermediate Crude Index. The index ended the week trading at $40.25 per barrel down -$1.07 or -2.59%. The (WTIC) has been moving in a sideways consolidation for the past 17 weeks between a price low of $34.27 per barrel to a high of $43.57. 

Based on my analysis there is no real interest in oil as of now due to the Coronavirus pandemic especially being that there are less airlines in the skies as well as vehicles on the streets just to name a few. We also have to consider that there have been many oil companies going out of business, filing bankruptcy or consolidating within the oil sector.

By Marlin Rolle