Short term consolidation
August 4th, 2010 by Lawrence Grasso
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10,636.38 | -38 | -0.4% |
| NASDAQ | 2,283.52 | -11.84 | -0.5% |
| S P 500 | 1,120.46 | -5.4 | -0.5% |
| FTSE 100 | 5,396.48 | -0.63 | -0.0% |
| Nikkei 225 | 9,694.01 | 123.7 | 1.3% |
| ASX 200 | 4,571.59 | 13.49 | 0.0% |
| COMEX Gold - Dec 09 | 1186.1 | 2 | 0.2% |
| COMEX Silver - Sep 09 | 18.422 | 0.003 | 0.0% |
| COMEX Copper - Sep 09 | 335.85 | -3.1 | -0.9% |
| WTI Spot | 82.55 | 1.21 | 1.5% |
| AUD-USD | 0.9129 | -0.001 | -0.1% |
| Aluminium | 2,200.00 | 15.5 | 0.7% |
| Copper | 7,360.00 | 24 | 0.3% |
| Lead | 2,175.50 | 90.5 | 4.3% |
| Nickel | 21,505.00 | 85 | 0.4% |
| Tin | 19,775.00 | -50 | -0.3% |
| Zinc | 2,059.50 | 59 | 2.9% |
U.S. stocks fell Tuesday as disappointing earnings from Procter & Gamble and Dow
Chemical, and a round of weaker-than-expected economic data, prompted worries about the strength of the recovery.
The Dow Jones Industrial Average declined 38 points, or 0.36%, to 10636.38.
In addition to the weak housing and consumer data, stocks were hurt by a bigger-than-expected drop in factory orders, which pointed to weakness in the industrial sector a day after better-than-expected manufacturing data had boosted the market. Most analysts said Tuesdays correction doesnt change the market's general uptrend as the policy environment will likely remain steady in the near future.
On the local front today the Australian market may see some short term profit taking after two fairly strong sessions. Look for Oil plays such as WPL and OSH to show some strength as Oil keeps breaking to the upside, closing up $1.21 or 1.49% to $82.55 . First point of short term resistance on Oil is around the $85 mark, however I believe our target of $90 will be reached by the end of the month. Gold seems to be trying to work out whether it has found support with a fairly big range traded over night. On a good note the commodity finished the session up slightly, $2 or 0.17 to $1186.10. I think you will find gold plays like NCM and LGL will form a sideways trading formation until we see a little more direction in gold over the next couple of weeks.
We have commenced reporting season in Australia, so make sure to get in touch with your broker over the coming weeks to give you an idea of how some of Australia’s finest companies have performed and any potential dividends that may arise.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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