Updated late Tuesday and Friday nights
Friday’s Close for Mar 10th, 2009
Written by: Mike Coval

I don’t think it was a surprise to most investors that we had a good day today as the buying actually started Friday during the last 30 minutes. Any buying into a Friday weekend it a bullish scenario. Over the past three weeks we showed lower closes 93% of the time. At some point an oversold bounce was imminent. I would not get too excited though as this could easily be just a short bounce before we head lower once more.

To watch a video of Tuesday’s market action, along with my thoughts, Click Here. The DOW closed up 119 points at 7,063 while the NASDAQ closed higher by 14 to finish the day at 1,378.

Energy: In the energy markets, oil prices advanced slightly after the U.S. government lowered its demand forecast. Late in the day, the price of crude futures was trading up $1.35 at $44.30 a barrel. Track the price of crude with the Oil ETF, USO.

Financials: The good news started with the Financials and most of that came early on from Citigroup Chief Executive Officer Vikram Pandit who said he believes that the market is undervaluing his bank Pandit said the firm was profitable through February and is performing better now than it has at this point in any other quarter in the last year.

Moody's, MCO, closed up $1.91 on news it will be revealing underperforming companies in a new monthly list called the Bottom Rung, which will identify firms closest to defaulting on their debts. The inaugural list includes 283 companies, including Advanced Micro Devices, AMD and Eastman Kodak EK.

Economic News: Still, broader economic reports remained troubling. In labor, the forecast for hiring is at its gloomiest point since the 1982 recession, according to the latest Manpower Employment Outlook Survey. Over the 33 countries surveyed by the employment agency, 23 reported their weakest hiring plans since Manpower began data tracking.

Overseas, the global economy may have received its weakest outlook in recent history when International Monetary Fung Managing Director Dominique Strauss-Kahn predicted a global economic contraction. "The IMF expects global growth to slow below zero this year, the worst performance in most of our lifetimes," he told African political and financial leaders in Dar Es Salaam.

Consumer Non Cyclicals: Kroger, KR had a trend reversal gap to close up $1.98 after a jump in fourth-quarter profit, topping Wall Street estimates. The grocer earned $349.2 million, or 53 cents a share, up from $322.9 million, or 48 cents a share, in the year-ago period. The increase came largely from a sales boost of Kroger-branded items.

Technology: Trying to buy their way to fame, Nvidia, NVDA, plans to begin a new search for young graphics hardware firms worthy of their investment. Nvidia will commit between $500,000 and $5 million to such firms in exchange for a minority stake. The program is designed to encourage wider use of Nvidea's own graphics processing chips. The stock closed up $0.75 on increased volume while continuing to make higher lows.



Communications: AT&T T gained $1.24 on news it will not only have a profit but will have enough to invest $17 billion to $18 billion in 2009.

Transportation: In a surprise announcement, Boeing, BA, advanced $2.01 on strong volume after it said its commercial-aircraft customers have access to sufficient credit so that all deliveries can take place as scheduled this year and into early 2010. Also, the 787 Dreamliner remains on schedule with its maiden flight to occur in the second quarter.

Good and or bad stocks to watch: SGP, NETL, NFLX, NCMI, CAJ, RSTI,

Homework Training: Feel free to leave any stocks you would like to have looked at in the comments section (below) and I’ll try and choose one of the stocks and add it to my analysis for all to read. Please tell your investing friends about this blog as well. It is here for you and the more comments I can get from you the better it will be.

Homework: Trend Reversal Gaps, part 1, click here.

Cheers,
Mike