ZLBT Chats

Wednesday, January 4, 2012

WALL STREET : Dow kicks off 2012 with a +179.82 rally

Stocks, Commodities Kick Off New Year on a High Note
The Dow Jones Industrial Average (DJIA – 12,397.38) rallied as high as 12,479.65 before paring its lead in the final minutes of trading, but still finished with a respectable gain of 179.8 points, or 1.5%. Among the Dow's 30 components, McDonald's (MCD) -- the best-performing blue chip of 2011 -- led the four laggards, giving up 1.5%. On the flip side, Alcoa (AA) paced the bullish majority by soaring 6.7%.
 The S&P 500 Index (SPX – 1,277.06) touched an intraday acme of 1,284.62, but cut its gain to 19.5 points, or 1.6%, by the time the dust settled. As alluded to earlier, a strong start to the year tends to bode well for the SPX's 12-month trajectory, as Senior Quantitative Analyst Rocky White pointed out. Finally, the Nasdaq Composite (COMP – 2,648.72) fared the best of its peers today, adding 43.6 points, or 1.7%. Earlier, the tech-rich index climaxed at 2,665.90.

Crude Oil (Feb) Technical Analysis
February crude oil closed $4.13 or 4.2% higher on Tuesday to close at $102.96 as it extended the rally off December's low. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near-term. If February extends the rally off December's low, November's high crossing at 103.28 is the next upside target. Closes below the 20-day moving average crossing at 98.70 would signal that a short-term top has been posted.
First resistance is November's high crossing at 103.28. 
Second resistance is the May 2011 high crossing at 105.34. 
First support is the 20-day moving average crossing at 98.70. 
Second support is the 38% retracement level of the October-November
rally crossing at 92.73.

HAPPY TRADING & GOODLUCK2ALL 

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