Monday, January 05, 2009
Good Way to Start the Year 2009
The bulls were in charge for the beginning of the first trading day for the new year on the hopes that 2009 will better for stocks. The Dow gained 258.30 points to close at 9,034.69. The SPX added 28.55 points to finish the session at 931.80. We have no play on but will soon.
Energy stocks led the way higher Friday on a further rise in crude prices. Oil gained nearly four percent, gaining $1.74 a barrel to $46.34. Production cuts are set to begin this month and Russia’s decision to cut off natural gas to the Ukraine combined to push the commodity higher. For the week, crude gained a very strong 23 percent.
Economic news was disappointing with data on manufacturing worse than expected. The ISM Index for December fell to a level of 32.4, down from 36.2 and below estimates for a reading of 35.5. This happens to be one of the worst readings in the 60 year history of data! The employment component was disappointing as well, falling more than four points to 29.9. For whatever reason this report was shrugged off by the market.
This week will see several key economic reports released, including the always important employment data. Traders will also be focusing in on President-elect Obama and his plans when he takes office later in the month. The bulls are hoping that when trading volume returns, it will confirm the recent gain in stocks....
As for us I like this rally and we wil now be looking to get a play on with two weeks to go.
Until next time.
Energy stocks led the way higher Friday on a further rise in crude prices. Oil gained nearly four percent, gaining $1.74 a barrel to $46.34. Production cuts are set to begin this month and Russia’s decision to cut off natural gas to the Ukraine combined to push the commodity higher. For the week, crude gained a very strong 23 percent.
Economic news was disappointing with data on manufacturing worse than expected. The ISM Index for December fell to a level of 32.4, down from 36.2 and below estimates for a reading of 35.5. This happens to be one of the worst readings in the 60 year history of data! The employment component was disappointing as well, falling more than four points to 29.9. For whatever reason this report was shrugged off by the market.
This week will see several key economic reports released, including the always important employment data. Traders will also be focusing in on President-elect Obama and his plans when he takes office later in the month. The bulls are hoping that when trading volume returns, it will confirm the recent gain in stocks....
As for us I like this rally and we wil now be looking to get a play on with two weeks to go.
Until next time.
# posted by Paul @ 5:53 AM 
