Weekly Market Letter, 13 October 2008
The Week Ahead: The rapidity of the stock markets decline last week left investors with the worst one week decline in its history. Banking leaders of the U.S., Europe, and Australia this weekend agreed to support financial firms to prevent failure. Initiatives such as buying bank securities are hoped to halt a financial crisis that none have seen before. The bond market will be closed Monday for Columbus Day. The Fed's Beige book, retail sales, and the Producer Price Index are released on Wednesday. The jobless claims and Consumer Price Index are due out on Thursday. September housing starts will be out by Friday.
Stocks to Watch: With the price of oil now below $80 a barrel, energy stocks had some of the biggest declines last week. Look for rebounds in companies like Anadarko Petroleum (APC), Conoco Phillips (COP), and Marathon Oil (MRO). With the dollar on the rebound, gold stocks were also leaders to the downside such as Agnico-Eagle Mines (AEM), Newmont Mining (NEM), and Goldcorp (GG). Morgan Stanley's (MS) debt rating was slashed this week as fear that a Mitsubishi investment of $9 billion would not hold the firm through the credit crisis.
Special Note: The breach of the 10 year moving average of 10,800 on the Dow Industrials and the pull of the 20 year moving average near the 7800 level mentioned here on September 22 was to great for the Dow Jones Industrials to withstand. It was hoped the internal trend line near the 9600 level which is drawn off the 1896 and 1903 low might hold, but will now act as resistance to future rally's. A yearly close beneath this trend line has occurred only four times in 112 years each with substantial declines. Therefore a close below 9600 for 2008 could make the coming year of 2009 one of the worst years for the DJIA and stock market as a whole.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
Click here to open an account.
NobleTrading Direct Access Trading
email: info@nobletrading.com
phone: 877.872.3311
web: http://www.nobletrading.com
Stocks to Watch: With the price of oil now below $80 a barrel, energy stocks had some of the biggest declines last week. Look for rebounds in companies like Anadarko Petroleum (APC), Conoco Phillips (COP), and Marathon Oil (MRO). With the dollar on the rebound, gold stocks were also leaders to the downside such as Agnico-Eagle Mines (AEM), Newmont Mining (NEM), and Goldcorp (GG). Morgan Stanley's (MS) debt rating was slashed this week as fear that a Mitsubishi investment of $9 billion would not hold the firm through the credit crisis.
Special Note: The breach of the 10 year moving average of 10,800 on the Dow Industrials and the pull of the 20 year moving average near the 7800 level mentioned here on September 22 was to great for the Dow Jones Industrials to withstand. It was hoped the internal trend line near the 9600 level which is drawn off the 1896 and 1903 low might hold, but will now act as resistance to future rally's. A yearly close beneath this trend line has occurred only four times in 112 years each with substantial declines. Therefore a close below 9600 for 2008 could make the coming year of 2009 one of the worst years for the DJIA and stock market as a whole.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
Click here to open an account.
NobleTrading Direct Access Trading
email: info@nobletrading.com
phone: 877.872.3311
web: http://www.nobletrading.com
posted by NobleTrading at
7:21 AM
<< Home