Stock Market Trading Newsletter, June 30, 2008
The Week Ahead: The slowing economy and high oil prices are impacting companies hard especially General Motors whose stock hit a 53 year low. Its long term debt rating is now six notches below investment grade and may have to cut its dividend or raise cash. With that said, the auto sales report for June comes out Tuesday along with construction spending numbers and the ISM Manufacturing Index. Factories orders are due Wednesday, but Thursday's employment report ahead of a long holiday weekend is the one to watch.
Stocks to Watch: Anheuser Busch (BUD) unveiled a new growth strategy after rejecting InBev NV's hostile takeover bid of $65 a share, but can the stock maintain is current high price level? The weak economy has impacted apparel makers Christopher and Banks (CBK) and American Eagle Outfitters (AEO) both hitting 52 week lows as the former has a cautious outlook and the latter was downgraded. Office furniture maker Steel Case (SCS) is also weak as domestic sales dropped 9%. Finally, Vestin Realty Mortgage II (VTRB) suspends its dividend due to a gloomy real estate market.
Special Note: The Dow Industrials recent break below its January 2000 high now has the most broadly watched average in negative territory for the past 8 1/2 years. The other two (Nasdaq and S&P 500) have been and still are substantially negative over the same time frame. Another significant message the Dow may be sending is the break below the long term trend line connecting the 1982 low and the 2002/2003 lows and its subsequent failure to push back through this line twice at the two peaks in May of this year. Upside resistance now appears to be between 12,000 and 12,500 on any ensuing rallies.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
To view all of NobleTrading's historical newsletters, click here.
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: Anheuser Busch (BUD) unveiled a new growth strategy after rejecting InBev NV's hostile takeover bid of $65 a share, but can the stock maintain is current high price level? The weak economy has impacted apparel makers Christopher and Banks (CBK) and American Eagle Outfitters (AEO) both hitting 52 week lows as the former has a cautious outlook and the latter was downgraded. Office furniture maker Steel Case (SCS) is also weak as domestic sales dropped 9%. Finally, Vestin Realty Mortgage II (VTRB) suspends its dividend due to a gloomy real estate market.
Special Note: The Dow Industrials recent break below its January 2000 high now has the most broadly watched average in negative territory for the past 8 1/2 years. The other two (Nasdaq and S&P 500) have been and still are substantially negative over the same time frame. Another significant message the Dow may be sending is the break below the long term trend line connecting the 1982 low and the 2002/2003 lows and its subsequent failure to push back through this line twice at the two peaks in May of this year. Upside resistance now appears to be between 12,000 and 12,500 on any ensuing rallies.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
To view all of NobleTrading's historical newsletters, click here.
Click here to open an account.
NobleTrading Direct Access Trading
email: info@nobletrading.com
phone: 877.872.3311
web: http://www.nobletrading.com
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