Buy the dips
May 6th, 2009 by Lawrence Grasso
Closing Data
| Current | -/+ | % | |
|---|---|---|---|
| Dow Jones | 8410.65 | -16.09 | -0.2% |
| NASDAQ | 1754.12 | -9.44 | -0.5% |
| S P 500 | 903.8 | -3.44 | -0.4% |
| FTSE 100 | 4336.94 | 93.72 | 2.2% |
| Nikkei 225 | 8977.37 | 149.11 | 1.7% |
| SPI Futures | 3882 | -2 | -0.1% |
| All Ordinaries | 3862.2 | 0.6 | 0.0% |
| Oil | 53.84 | -0.63 | -1.2% |
| Gold | 904.3 | 2.1 | 0.2% |
| Silver | 13.42 | 0.307 | 2.3% |
| Aluminium | 1507.25 | 3.25 | 0.2% |
| Copper | 208.25 | -6.15 | -2.9% |
| Lead | 1393 | 3.5 | 0.3% |
| Nickel | 11941 | 96 | 0.8% |
| Tin | 12790 | 100 | 0.8% |
| Zinc | 1503.75 | 11.75 | 0.8% |
The Dow Jones Industrial Average fell 16.09 points, or 0.19%, to 8410.65, and is off 4.2% for 2009 so far. Stocks on Wall Street fell as banks such as JPMorgan Chase and sellers of consumer staples such as Wal-Mart Stores pared recent gains. Both bank and Consumer sectors are awaiting key data. Bank stress-test results and April retail sales figures are due Thursday.
Australian stocks are set for a flat open on today, with the market taking a breather after strong gains earlier in the week.
From a technical point of view the XJO has found resistance at 3950. It previously found resistance at this level back on 12/11/08. As we have suggested in previous Market Fox reports, once the market reached around 3900 mark it would be met by some selling pressure. We are now looking for XJO to have a short term pull back to 3750. “ANY PULL BACK IS A BUYING OPPORTUNITY”
WBC
Westpac Banking Corp first half net profit fell 1.2% on year. It reduced its interim dividend to 56 cents, as a sharp rise in bad loans offset higher earnings generated from its acquisition of St. George Bank. Australia's largest bank by market capitalization, said in a statement that net profit for the six months ended March 31 fell to $2.175 billion from $2.202 billion a year earlier. The reported results include St. George from 18 November 2008. Revenue rose to $8.09 billion from $5.9 billion a year ago.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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