Updated throughout the week
Monday’s Close for Dec 31st, 2009
Written by: Mike Coval

We had a fairly strong day today with all three markets, Dow, Nasdaq and the S&P 500 all moving higher and back to their resistance levels. Still, no real breakouts just yet. Will we get them before the end of the year or will the institutions try and lock in some last minute profits? Remember this will be a shortened week and volume should be lighter than usual.

The DOW closed up 85 points at 10,414 while the NASDAQ closed higher by 26 to finish the day at 2,238.

Energy: Oil prices fell after both European and U.S. oil companies reported some disappointing earnings numbers. Late in the day, the price of crude futures were trading down $1.12 at $73.30 a barrel. Track the price of crude with the Oil ETF, USO.

Economic News: No major reports out today however analysts from BAC commented that the U.S. consumer has held up better than many expected through high unemployment, debt burdens, depressed asset values and tight credit.

Technology: Intel, INTC got a nice upgrade from Barclays Capital sending the stock up $0.46. The news was positive and technically the stock was bouncing up off its lower Bollinger Band as the MACD’s and Stochastics turned higher. An option trader might consider buying the Feb $19.00 calls and then selling the Jan $21.00 calls for a nice Diagonal Spread.

Basic Materials: I’m not sure what the trade here is (yes I am but you’ll need to figure it out) Alcoa, AA made a high volume breakout to the upside on news of a new partnership along with a "Strong Buy" upgrade.

Finally some more good news for Bucyrus Intl, BUCY. The company said it is buying the mining unit of Terex, TEX, for $1.3 billion. Bucyrus shares rose 9.8% on heavy institutional buying, while Terex climbed 9%.

Cheers,
Mike           
                                         $0.99 Two Week Trial