A solid weeks buying
December 1st, 2008 by Antony Ganzitti
Closing Data
| current | change | % | |
|---|---|---|---|
| Dow Jones | 8829.04 | 102.43 | 1.2% |
| NASDAQ | 1535.57 | 3.47 | 0.2% |
| S P 500 | 896.24 | 8.56 | 1.0% |
| FTSE 100 | 4288.01 | 61.91 | 1.5% |
| Nikkei 225 | 8512.27 | 138.88 | 1.7% |
| SPI Futures | 3664 | -67 | -1.8% |
| All Ords | 3,673.00 | 144.5 | 4.1% |
| Oil | 54.05 | -0.15 | -0.3% |
| Gold | 815.55 | 2.55 | 0.3% |
| Silver | 10.24 | -0.02 | -0.2% |
| Aluminium | 1701 | -19.5 | -1.1% |
| Copper | 3581 | -84 | -2.3% |
| Lead | 1080 | -6 | -0.6% |
| Nickel | 9705 | -455 | -4.5% |
| Tin | 12310 | -390 | -3.1% |
| Zinc | 1185 | -28.5 | -2.3% |
A relatively quiet finish to the week on the Dow Jones Friday night, as a shortened session welcomed traders and investors back from their Thanksgiving Day holiday. The Dow Jones closed up 102 points to end the week at 8829, after posting 5 consecutive positive days. Our local market followed suit, and is currently 525 points off the low recorded 10 days ago. We can expect a slightly bullish start to the trading week, with overnight SPI futures up 15 points at 3746.
An interested week ahead in terms of economic releases. In the US the November jobs figure will be the most anticipated. Locally, we have the RBA policy board meeting, GDP for the September quarter, and Building Approvals for October. The futures market is pricing in a rate cut of at least 2.5% by April next year, to bring the cash rate down to 2.75%.
Comments in the Australian newspaper this morning suggest that the fate of Babcock and Brown (BNB) lies in the hands of two European banks that are not ready to commit $200 million to a survival package. This is on top of talks the company is in with its banking syndicate concerning a $3.1 billion debt facility.
Australian wheat exporter AWB said Friday that it was in merger discussions with rival ABB Grain. The talks are ongoing.
OZ Minerals (OZL) is still in a trading halt, after seeking an extension to debt facilities from its lenders.
Now to some technicals.......
The low we saw off 3217 was important as noted in last week’s Market Fox. It appears as if it was the last hurrah for many exhausted sellers in the market. The ASX200 then created an important inside bar on the daily chart on Wednesday of last week, which then saw an upward break on Friday. A great bullish signal for technicians. Also of importance is the strong finish to the week, something which has not been seen in a long time. Note that indices all around the world show bullish weekly bars from last week’s price action.
Interesting also to note, the 2002/2003 bear market lasted 1 year and 1 month. The current downturn has lasted 1 year and 20 days. Close enough!!
Chart observers need to be glued to their charts. A lot of stocks have already given daily buy signals after being in severely oversold territory, and quite a few others are in the midst of potentially giving some upward resurgence signals which will see momentum return to the upside.
Happy trading!!
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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