Stock Market Weekly Newsletter, 22 September 2008
The Week Ahead: Sparked by a government plan to rescue an ailing financial system, markets breathed a collective sigh of relief as a tumultuous and historic week ended with a 1000 point rally from Thursday's low to Friday's high. Investors will now look for details of the rescue plan this week. However, don't overlook other important reports such as existing home sales on Wednesday, durable goods and new home sales on Thursday, and Q2 final GDP and the University of Michigan Consumer Sentiment report on Friday.
Stocks to Watch: General Motors (GM) shares were up on growing optimism for a $25 billion dollar government loan package. Other noteworthy DOW gainers include: American Express (AXP), Chevron (CVX), DuPont (DD), International Business Machines (IBM), and 3M Company (MMM). One of the world's largest life insurance and pension groups Aegon (AEG) says it does not hold any AIG stock and has cut exposure by 20% which helped propel the stock back above $10 a share. Finally, OfficeMax (OMX) was downgraded by a major brokerage.
Special Note: When the Dow Jones Industrial Average closed beneath 10,800 on Wednesday of last week panic was starting to set in before the government rescue plan. As it turns out 10,800 may be a "line in the sand" for technical reasons. The DJIA's 10 year moving average is approximately this number. The 20 year moving average is between 7600 and 7800. If the DJIA closes below 10,800 this year, there is not much support in between with the exception of the 9600 area which is a another critical support level that will be covered later.
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: General Motors (GM) shares were up on growing optimism for a $25 billion dollar government loan package. Other noteworthy DOW gainers include: American Express (AXP), Chevron (CVX), DuPont (DD), International Business Machines (IBM), and 3M Company (MMM). One of the world's largest life insurance and pension groups Aegon (AEG) says it does not hold any AIG stock and has cut exposure by 20% which helped propel the stock back above $10 a share. Finally, OfficeMax (OMX) was downgraded by a major brokerage.
Special Note: When the Dow Jones Industrial Average closed beneath 10,800 on Wednesday of last week panic was starting to set in before the government rescue plan. As it turns out 10,800 may be a "line in the sand" for technical reasons. The DJIA's 10 year moving average is approximately this number. The 20 year moving average is between 7600 and 7800. If the DJIA closes below 10,800 this year, there is not much support in between with the exception of the 9600 area which is a another critical support level that will be covered later.
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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