Weekly Stock Market Review Letter, 8 December 2008
The Week Ahead: The worst monthly job loss since 1974 in November left over a 1/2 million people without work accelerating the already grim numbers for 2008 and signaling the worst recession in the post World War II era. Look for Congress to craft and vote on an auto bailout package this week. Watch the pending home sales number on Tuesday. Wholesale trade and import prices are due Wednesday and Thursday respectively. Friday brings retail sales and November's Producer Price Index.
Stocks to Watch: Sonoco (SON) the paper products company cut there Q4 EPS target and broke briefly below support near 20 before rebounding. Brown Forman (BF.B), the liqueur distiller, beat Q2 EPS handily and set in motion a $250 million stock buyback plan. DineEquity Inc. (DIN) has been rallying as Southeastern Asset Management now holds an 18.4% stake in the company. Finally, Gilead Sciences (GILD) rallied strongly again within its recent uptrend on word that Baird research is predicting a strong rally in large Biotech stocks.
Special Note: The technical rally that began from the November lows should be nearing an end for the major indices between 20 and 25%. A move above the November highs this week could complete the first multi-week rally of the fourth quarter. The rest of the year could be dominated by tax loss selling, hedge fund selling, and overall rebalancing of portfolios as a new year approaches. The key price level for the Dow Industrials to close this year is the 9600 area. A close below this level could usher in even greater bearish forces in 2009.
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: Sonoco (SON) the paper products company cut there Q4 EPS target and broke briefly below support near 20 before rebounding. Brown Forman (BF.B), the liqueur distiller, beat Q2 EPS handily and set in motion a $250 million stock buyback plan. DineEquity Inc. (DIN) has been rallying as Southeastern Asset Management now holds an 18.4% stake in the company. Finally, Gilead Sciences (GILD) rallied strongly again within its recent uptrend on word that Baird research is predicting a strong rally in large Biotech stocks.
Special Note: The technical rally that began from the November lows should be nearing an end for the major indices between 20 and 25%. A move above the November highs this week could complete the first multi-week rally of the fourth quarter. The rest of the year could be dominated by tax loss selling, hedge fund selling, and overall rebalancing of portfolios as a new year approaches. The key price level for the Dow Industrials to close this year is the 9600 area. A close below this level could usher in even greater bearish forces in 2009.
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 Daniel Pipitone at
6:27 AM
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