Swing Trading Strategies & Stock Picks Since 2003

Dow Jones Industrial Average

14^th Sep 09

Key Statistics

Open: 9598.08

High: 9631.11

Low: 9535.96

Close: 9626.80

Change: +21.39 (+0.22%)

Prev Close: 9605.41

RSI: 58.52

MACD: 114.10

Snapshot

• Dow ended +21.39 (+0.22%) points higher, S&P 500 down 0.6% and Nasdaq down 0.5%
• US imposes duty on Chinese tyre imports
• M&A activity sparks investor interest

Current Market view – Cautious

Market Strategy

As expected, markets witnessed profit booking at the last session of the week. Traders/Investors are advised to use the correction as a buying opportunity. One should make long positions on every dip and shorting is not advised in current market scenario.

Market Commentary

Stocks managed to close higher after drifting lower for most of the session as reports of merger activity suggested that investors still see value, after the market has risen almost 50% since Mar 09 lows.

Markets drifted lower during the start of the session on reports of increased trade differences between U.S. and China. Washington on Monday imposed special duties on Chinese tyre imports. Shares of U.S. tire makers rose. Goodyear Tire & Rubber Co was up 3%.

The President Obama spoke Monday on Wall Street about financial services reform on the eve of the one-year anniversary of the collapse of Lehman Brothers.

Obama said that the economy is returning to normal, but that it will take time.

 Shares of power company AES Corp rose 4.5 percent after a Wall Street Journal report that China's sovereign wealth fund was in talks to take a stake in AES. Sprint Nextel Corp jumped 10.1 percent after a British newspaper reported Germany's Deutsche Telekom AG was considering a bid for its U.S. rival.

Tuesday is the anniversary of the collapse of Lehman Brothers and the events that turned recession into a full blown financial crisis.

However, urgent reformatory steps taken the U.S. Govt., Financial Managers and Other World Economies helped the world from the going into the biggest recession since the Great Depression of 1930s.

Looking back at the crisis, The President Obama asked the Wall Street firms not to engage in such risky behaviors and to comply with financial reform policies.

16 of the 30 Dow components ended the session in green. Leading the advances were General Electric Co, JP Morgan Chase & Co up 4.64% and 2.94% respectively.

Walt Disney Co and Cisco Systems Inc were the major laggards down 1.205 and 1.30% respectively.

The Day Ahead

·        August retail sales data, Producer Price Index and Empire State Manufacturing Index are due for release on Tuesday

·        Federal Reserve Chairman Ben Bernanke will talk about "Reflections on A Year of Crisis" in Washington on Tuesday.