Swing Trading Strategies & Stock Picks Since 2003

Dow Jones Industrial Average

4^th Nov 09

Key Statistics

Open: 9767.30

High: 9928.04

Low: 9767.14

Close: 9802.14

Change: +30.23 (+0.31%)

Prev Close: 9771.91

RSI: 40.59

MACD: 19.24

Snapshot

• Dow ended +30.23 (+0.31%) points higher, S&P 500 up 0.1% and Nasdaq down 0.1%.
• Fed keeps interest rates unchanged
• Oil prices above $80 a barrel
• Cisco posts better than expected results
• Kraft Foods reports weaker quarterly earnings
• Jobs report data better than expected

Current Market view – Cautious

Market Strategy

Traders/Investors are advised now advised to use any correction as a buying opportunity. One should make long positions on every dip, as markets have retraced sufficiently from peak.

Market Commentary

Major indices ended mixed on Wednesday and gave up a big part of the day’s rally after the Fed reiterated its intent to keep the interest rate low for an extended period of time.

The Dow climbed as high as 9,928.04, while the S&P 500 hit an intraday high at 1,061.00 and the Nasdaq touched 2,081.00. But the market was unable to hold those gains as it succumbed to selling pressure in the last half-hour of trading and the Nasdaq ended slightly lower.

After the closing bell, Cisco Systems Inc. said quarterly revenue rose more than expected from its previous quarter. The company also said its board authorized up to $10 billion in additional stock buybacks. Stock gained 3.1%

Kraft Foods fell 3% after the company reported weaker quarterly earnings that topped estimates on weaker revenue that missed estimates.

In other earnings news, Time Warner and Comcast topped earnings expectations.

Positive economic reports data in the first half of the day pushed the Dow higher. The Institute for Supply Management's reading on the services sector of the economy came in at 50.6. A reading above 50 indicates expansion.

Another report showed that the employers cut 203,000 jobs from their payrolls in October. The report showed signs of improvement in the labor market.

Healthcare stocks advanced on Wednesday as Wellcare Health Plans Inc posted better than expected quarterly numbers. The stock ended up 6.7%.

The dollar fell versus the yen and gained against the euro. U.S. light crude oil for December delivery rose cents 80 cents to settle at $80.40 a barrel on the New York Mercantile Exchange.

17 of the 30 Dow components ended the session in green. Merck & Co Inc and Microsoft Corp were amongst the top gainers on the Dow up 6.42% and 1.93% respectively.

Kraft Foods Inc., JP Morgan Chase & Co and Citigroup Inc were amongst the top decliners on the Dow down 3.16%, 1.73% and 1.15% respectively.

The Day Ahead

·        Jobless claims data is due for release today