Weekly analysis

Discussion in 'Journals' started by Broco, Mar 18, 2009.

  1. Broco

    Broco

    The market moves upwards

    On Friday, March 13, the stock market increased, having demonstrated a long-expected power one day after NYSE indices indicated the finish of decrease. Nasdaq index grew for 0.4 %. Shares of Dow industry index, S&P 500 and NYSE indices increased as much as 0.8 %. Nasdaq volume fell for 17% and NYSE volume decreased to 11 % in comparison with Thursday levels. Thursday was the day when the market correction finished. It seemed that shares were going to relieve from the part of profit on Friday. But the market consolidated. Session growth reflected growth of major indices 4 days running, and in two cases there was a significant increase. During a week Nasdaq had grown as much as 10.6 %. S&P 500 increased for 10.7 %, NYSE - for 10.2 %, and Dow industry index - for as much as 9 %. As you know, the stock market had been decreasing during many months with a number of weeks of huge losses and a few weeks of a significant growth.
    Though under these market conditions weekly growth for even more than 10% for the most part of major indices is significant.

    The last time the market weekly increase for 10% and more indicated the beginning of the market upwards trend, though this rising movement lasted for a short time. Now the question is – how long the current rising attempt will last for?

    Within last months the market promised to stop falling several times, but every time these attempts turned to be unlucky. Leading shares tried to match intense movement of the market, but IBD 100 index fell behind the growth of major indices. IBD 100 index rose approximately for 4.6 %. We note that the best shares slowly start consolidating.

    Top banks had been the dominating subject for the financial news during a week. Citigroup claimed it will not need government support anymore, and the company will remain to be private. When the bank reported its profit for the first two months of 2009 year, it heavily conduced to the market’s three days’ rally. Following to CITI group, JPMorgan (JPM) and the Bank of America (ÂÀÑ) reported about the same intentions that week. In the week 7 – 13 March ETF SPDR’s financial funds grew for 33 %, though it remains for 70% lower than its 52 week’s minimum point. ETF decreased and showed its minimum point the last week.

    Market conditions:

    Though shares’ growth is slight, we observe completion of the market’s decrease. It means the profound shift was made – withdrawing purchasing prohibition will start funding portfolios. At the same time careful investors may wait for the first deep market correction. As a rule, the first correction turns to be significant and entry options can become rather more attractive.