Swing Trading Strategies & Stock Picks Since 2003

Dow Jones Industrial Average

8^th June 09

Key Statistics

Open: 8759.35

High: 8823.97

Low: 8633.07

Close: 8764.49

Volume: 863.6M

Change: +1.36 (+0.02%)

RSI: 60.67

MACD: 153.93

Snapshot

• Dow ended flat +1.36(+0.02 %) points higher.
• McDonald’s posts lower than expected sales.
• Bank shares rally in last hour of trade.

Current Market view– Cautious

Market Strategy

The market is showing extreme volatility at current levels. At present the market is range bound with 8300 being the support and 8800 levels the resistance on the upside. From here on, the market will be facing stiff resistance on the up move. Prefer booking profit on higher levels. After a strong rally we expect the market to go into an intermediary corrective phase.

Market Commentary

The markets witnessed see-saw trade on the first trading day of this week. After falling almost 1%, the indices rallied back to positive territory in the last hour of trade but managed only to close near flat.

Banks were in focus Monday. The 10 banks that were required to raise a collective $75 billion as a result of the government "stress tests" have to submit detailed plans by Monday. Bank of America, Morgan Stanley and PNC Financial Services are among the companies that have already met or exceeded requirements.

In addition, the government is expected to announce by Tuesday morning which banks can pay back the TARP funds. Most major bank stocks ended the session higher.

On Monday afternoon, Apple introduced a faster version of its iPhone and lowered the price on its existing phone. Apple shares ended modestly lower.

McDonald's shares dipped after the company reported May sales at stores open a year or more rose 5.1%, versus a rise of 6.9% in April.

Trading volume was low on the New York Stock Exchange, with about 1.08 billion shareschanging hands, well below last year's estimated daily average of 1.49 billion, while on Nasdaq, about 1.99 billion shares traded, below last year's daily average of 2.28 billion. Declining stocks outnumbered advancing ones on the NYSE by 1,890 to 1,106 while on the Nasdaq, decliners beat advancers by 1,657 to 1,026.