ROBIN HIT THE BULLSEYE AGAIN THIS WEEK!! THE FOLLOWING IS THE NARRATIVE FROM LAST SATURDAY’S 1/3/2009 BLOG WHEN ANALYZING THE DOW AFTER IT HAD CLOSED THE WEEK AT 9035:
“My bet is that the index may flirt with higher levels but very briefly and then will retrace to test 8348.”
THE DOW CLOSED AT 8599 ON FRIDAY 1/9/2009 AND IS STILL MOVING BEARISH.
The first Monday of the New Year was characterized by a relatively low volume bearish move primarily on bad Auto and Truck Sales numbers. Factory orders were also poor to contribute to the days’ loss. Obama’s proposed $300 billion tax cut package had little effect on Monday’s outcome with the DOW closing down 82 points.
Tuesday saw the markets close higher by 62 points despite battling negative news. The market closed well off of its’ highs indicating a lack of conviction to sustain the rally from last week.
Wednesday the market succumbed to the negative and much larger than expected ADP Employment numbers of 693,000 job losses in December. Oil dropped dramatically and estimates from the Budget Office of a 2009 trillion dollar deficit contributed to the DOW plunge of 245 points.
Thursday, the market pulled significantly off of the days’ lows giving hope that the last few days were merely profit taking sessions. WMT cut its’ forecast and a plethora of retailers added to the negative picture with declining ‘Same Store Sales’.
The week ended with a 143 point drop in the DOW to finish a bearish week. The much-anticipated Non Farm Payrolls were the low light of the day although not as bad as some were expecting losing 524,000 jobs in December. The unemployment rate hit 7.2%.
The week over week results saw the DOW down by 436 points, the SPX off by 42 and the COMPQ worse by 60.
