Higher End To The Year?
June 30th, 2009 by Neil Gynther
Closing Data
| Current | +/- | % | |
|---|---|---|---|
| Dow Jones | 8529.38 | 90.99 | 1.1% |
| NASDAQ | 1844.06 | 5.84 | 0.3% |
| S P 500 | 927.23 | 8.33 | 0.9% |
| FTSE 100 | 4294.03 | 53.02 | 1.3% |
| Nikkei 225 | 9783.47 | -93.92 | -1.0% |
| US Bond 10 Yr | 3.4777 | -0.0499 | -1.4% |
| US Bond 30 Yr | 4.2861 | -0.0452 | -1.0% |
| COMEX Gold - Aug 09 | 940.7 | -0.3 | -0.0% |
| COMEX Silver - Jul 09 | 13.947 | -0.181 | -1.3% |
| COMEX Copper - Jul 09 | 231.25 | 1.9 | 0.8% |
| WTI Spot | 71.47 | 2.31 | 3.3% |
| Aluminium | 1616 | -30.5 | -1.9% |
| Copper | 5085.5 | -16 | -0.3% |
| Lead | 1709 | -9 | -0.5% |
| Nickel | 15780 | -95 | -0.6% |
| Tin | 14790 | -210 | -1.4% |
| Zinc | 1546 | -43.5 | -2.7% |
| 0.0% |
Wall Street finished higher on Monday, extending the best quarterly rally for the S&P 500 Index since 1998, as higher oil prices lifted energy shares and speculation grew that the recession is easing.
Market breadth was mixed. On the NYSE, winners topped losers three to two and on the NASDAQ, decliners beat advancers seven to six. In addition, there was some window dressing—selling off your losers and picking up some winners—as Tuesday marks the end of the quarter.
The CBOE Volatility Index dropped again, finishing at 25.35. There was only one decliner on the Dow, Alcoa, which lost 3% after a broker downgraded its rating on the stock to "underperform". Alcoa unofficially kicks off the second-quarter earnings season with its results next week. No major US economic indicators were released today, but later this week, investors will get readings on manufacturing, pending-home sales and unemployment.
Rising oil prices boosted Dow oil components Chevron (1.4%) and Exxon Mobil (2.2%). Other big gainers included Boeing (1.8%), United Technologies (1.8%), Microsoft (2.2%), Hewlett-Packard (3.6%)
and Intel (0.6%). The S&P 500 Financials Index of 80 banks, insurers and investment firms had the biggest gain among 10 industries, rising 1.4%. The group is the best performer in the quarter, with a 37% rally. Financial shares have risen 99% from a 17-year low reached on March 6.
Gold was off 30 cents to finish the session at $940.70.
Both RIO and BHP were stronger in overseas markets and should have good support on our market today. The SPI has us opening 47 points in the positive.
It is interesting that the US market has had the best Quarterly rally in a decade yet their economy is still in dire straits. Does this mean that investors are overly optimistic or that markets were very much oversold earlier this year? I think it is a combination of both and that is why I think our market will be range bound now for a few months as it consolidates in the 3700 to 4300 range. It is an excellent period for the Buy/Write strategy and, as volatility drops, you should look to write as early in the month as possible.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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