Consolidation Ahead
July 3rd, 2009 by Lawrence Grasso
Closing Data
| Current | +/- | % | |
|---|---|---|---|
| Dow Jones | 8280.74 | -223.32 | -2.6% |
| NASDAQ | 1796.52 | -49.2 | -2.7% |
| S P 500 | 896.42 | -26.91 | -2.9% |
| FTSE 100 | 4234.27 | -106.44 | -2.5% |
| Nikkei 225 | 9876.15 | -63.78 | -0.6% |
| US Bond 10 Yr | 3.4965 | -0.04 | -1.1% |
| US Bond 30 Yr | 4.3237 | -0.0067 | -0.2% |
| COMEX Gold - Aug 09 | 931 | -10.3 | -1.1% |
| COMEX Silver - Jul 09 | 13.393 | -0.347 | -2.5% |
| COMEX Copper - Jul 09 | 229 | -2.5 | -1.1% |
| WTI Spot | 66.68 | -2.64 | -3.8% |
| Aluminium | 1611 | 1 | 0.1% |
| Copper | 5006 | -36 | -0.7% |
| Lead | 1708 | 13 | 0.8% |
| Nickel | 16185 | 410 | 2.6% |
| Tin | 14490 | 30 | 0.2% |
| Zinc | 1549.5 | 5 | 0.3% |
U.S. stocks tumbled 223.32 pts or 2.63% to 8280.74, sending the Dow Jones Industrial Average to its biggest drop since April 20. A worse than projected decrease in jobs added to concern that rising unemployment will prolong the recession. Furthermore oil fell quietly heavily, $2.64, to $66.68 a barrel accompanied by 1.09% or $10.30 pull back in gold.
Australian stocks are expected to start lower on Friday after a steeper-than-expected slide in U.S. payrolls led to the big fall on the U.S. market. Volume, however, was very light ahead of the long weekend in the U.S. for July 4th celebrations. Look for the XJO to be down at least 80-100 points today but on light volume.
Global miner Rio Tinto Ltd ( RIO) is likely to be in focus after it said on Friday it had successfully completed the Australian portion of its $15.2 billion rights issue, with shareholder acceptances at 94.76 percent.
Following on from Wednesdays Market Fox, the financial sector will see further downside today. So for those clients that bought puts look to take profit today. Today’s downside should be looked upon as a opportunity to pick up some new positions for the portfolio. This doesn’t mean you go all in but definitely look to add today.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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