Weekly Stock Market Newsletter, 5 January 2009
The Week Ahead: Despite the countertrend rally that started November 21, the S&P 500 and Nasdaq Composite ended there worst year ever in 2008 while the Dow Industrials ended its 3rd worst in 112 years. The long term trend has begun to roll over in a way that markets haven't seen in two generations. 2009 opened strongly for the major indexes at the end of the holiday season last week, but may get a reality check ahead of the employment report this Friday.
Stocks to Watch: General Motors (GM) may be the most heavily watched DOW stock in 2009 as it will receive the 1st installment of $4 billion of government assistance to help the company survive. Starwood Hotel & Resorts (HOT) signed a confidentiality agreement with its largest shareholder Sam Zell who could be willing to increase his stake in the company. Amazon.com (AMZN) continued its rally as shares hit an eight week high on strong holiday sales similar to Wal-Mart.
Special Note: The next 18 months will find the major indexes marching in tandem towards the convergence of there 4 and 3.3 year cycle lows due by mid 2010. The internal trend line on the Dow Industrials near 9600 was officially breached at the 2008 close putting the DOW in a similar position as it was at the end of 1930 which preceded its worst year ever in 1931 when it declined over 52%. Investors should be aware of the overhead resistance on the DOW for 2009 which looks to be a few hundred points either side of 10,000 before a new major leg down begins.
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: General Motors (GM) may be the most heavily watched DOW stock in 2009 as it will receive the 1st installment of $4 billion of government assistance to help the company survive. Starwood Hotel & Resorts (HOT) signed a confidentiality agreement with its largest shareholder Sam Zell who could be willing to increase his stake in the company. Amazon.com (AMZN) continued its rally as shares hit an eight week high on strong holiday sales similar to Wal-Mart.
Special Note: The next 18 months will find the major indexes marching in tandem towards the convergence of there 4 and 3.3 year cycle lows due by mid 2010. The internal trend line on the Dow Industrials near 9600 was officially breached at the 2008 close putting the DOW in a similar position as it was at the end of 1930 which preceded its worst year ever in 1931 when it declined over 52%. Investors should be aware of the overhead resistance on the DOW for 2009 which looks to be a few hundred points either side of 10,000 before a new major leg down begins.
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
7:42 AM
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