Market Update for Week Ending
March 26, 2010



Members following the recommendations from SOME this past week were rewarded with a healthy 515% gain.

Here are the gains on some of the stock options recommended by SOME during the last week:-

Yamana Gold (AUY)……26%

Baidu (BIDU)……… 45%

Walgreen Co. (WAG) ……18%

Freeport-McMoRan Copper & Gold (FCX)…….39%

Lexmark International (LXK)……..36%

Red Hat Inc. (RHT) ……55%

Best Buy Co. (BBY)………..32%

Sirius XM Radio (SIRI)………40%

Visa Inc. (V) …….25%

Delta Air Lines (DAL)…….38%

Garmin Ltd. (GRMN) ………..65%

Amazon.com (AMZN) ………35%




Overview of the Past Week



Monday saw the Dow Jones Industrial Average (DJIA) start the day off in the red after the ending on Sunday, of the year-long debate by the U.S. House of Representatives, which saw the passing of the health care bill. But a rally by hospital stocks and managed-care providers as well as upgrades for both Boeing Co. (BA) and Citigroup Inc. (BA) saw the Dow Jones Industrial Average (DJIA) finish the day strongly.

As by the close-of-the-day, the Dow Jones Industrial Average (DJIA – 10,785.89) ended on a gain of 43.9 points or 0.4%, the S&P 500 Index (SPX – 1,165.81) added on 5.9 points, or 0.5%, whilst the Nasdaq Composite (COMP – 2,395.40) had a gain of 21 points or 0.9% for the day.

Tuesday saw better-than-expected housing data from the National Association of Realtors and along with closure from the health-care sector, the major market indexes continued to extend their upper levels. The day saw the Bulls pushing the SPX and the Dow to new highs for the year.

The Dow Jones Industrial Average (DJIA – 10,888.83) managed a gain of 102.9 points, or 1.0% and the S&P 500 Index (SPX – 1,174.17) gained 8.4 points, or 0.7%. Finally, the Nasdaq Composite (COMP – 2,415.24) did well adding on 20 points, or 0.8%, The COMP finished the day atop the 2,400 level for the first time since Aug. 18, 2008. Home Depot (HD) and Exxon Mobil (XOM) are the only two components, out of 30, within The Dow Jones Industrial Average (DJIA), that didn’t advance on the day.

Wednesday saw all three major indexes finish the day in the red due to several factors. The major reason was Fitch Ratings slashing its credit rating on Portugal, predicting a slower economic recovery compared to its euro zone peers. This, along with the Commerce Department announcement that new home sales unexpectedly fell to a record low in February, saw the Bulls’ in trouble.

The Dow Jones Industrial Average (DJIA – 10,836.15) had a loss of 52.7 points, or 0.5%, the S&P 500 Index (SPX – 1,167.72) gave up 6.5 points, or 0.6%, whilst the Nasdaq Composite (COMP – 2,398.76) fared the worst of the three, finishing the day with a loss of 16.5 points, or 0.7%.

Thursday saw the bulls take the reins and exploit the dip on Wednesday as an opportunity to buy. Also, several factors helped the bull-run, a stronger-than-expected outlook from Qualcomm (QCOM) and a solid quarterly report from Best Buy Co. (BBY), as well as a fourth consecutive week-over-week decline in first-time jobless claims, and Fed Chairman, Ben Bernanke, reiterating the need for an extended period of record-low interest rates. However, this run did not last, with the major indexes reversing course because of news that the two-day summit in Brussels, the European Union (EU) was debating a solution to Greece's sovereign debt concerns.

After gaining new highs of 10,955.48 in early trading, the Dow Jones Industrial Average (DJIA – 10,841.21) reversed course to manage a small gain of only 5.1 points, or 0.05%. The S&P 500 Index (SPX – 1,165.83) also lost ground, after reaching a new high of 1,180.69, giving up 2.0 points, or 0.2%. In a similar vein, the Nasdaq Composite (COMP – 2,397.41) also reached new heights of 2,432.25 to finish on a daily loss of 1.35 points, or 0.1%.

Friday saw a replay of Thursday with stocks extending their lead only to reverse tracks in the afternoon. Better-than-expected consumer confidence numbers, as the University of Michigan/Reuters index came in higher than expected for March, combined with news that the International Monetary Fund (IMF) had struck a deal with euro zone leaders to bail out debt-ridden country, Greece, helped push the indexes higher in the early part of the session. However, news from overseas, as a South Korean Navy ship sank in the Yellow Sea following what many feared was a torpedo launch by North Korea, helped send the stocks lower again to end the day mixed.

The Dow Jones Industrial Average (DJIA – 10,850.36) settled on a gain of 9.2 points, or 0.08%. The S&P 500 Index (SPX – 1,166.59) made a small gain of 0.9 points, or 0.07%, whilst the Nasdaq Composite (COMP – 2,395.13) fared the worst of the major market indexes, falling by 2.3 points, or 0.1%.

By the close of the week, the Dow Jones Industrial Average (DJIA) was up 1.0%, the S&P 500 Index (SPX) was also up for the week, with a gain of 0.6%, whilst the Nasdaq Composite (COMP) managed a gain of 0.9%. The Dow had its highest weekly finish since Sept. 26, 2008. The SPX managed a weekly close above its key 160-month moving average for the first time since September 2008. The COMP managed to have its highest weekly close since August 22nd, 2008.

The end result, for the week, is as follows:-


• The Dow Jones Industrial Average (DJIA – 10,850.36).

• The S&P 500 Index (SPX – 1,166.59).

• The Nasdaq Composite (COMP – 2,395.13).

The Dow Jones Industrial Average recorded its fourth straight weekly gain last week. All the major market indexes set new 2010 highs and reached levels not seen since before the financial disaster of 2008.


Some notable news for the week

• The poll in the weekly American Association of Individual Investors' poll shows there are more bears than bulls among the respondents which is quite extraordinary in the face of a strong uptrend which usually reflects bullish implications. In fact, during the past three weeks, the higher the market, the more bearish this group has become.

• Fitch Ratings slashed its credit rating on Portugal.

• Macquarie Securities upgraded Boeing Co. (BA) to "outperform" from "neutral," citing the commercial jet maker's recent decision to increase production rates for certain aircraft. "Boeing's announcement that it is to bring forward a rate rise on the 777, while also holding 737 rates flat means we are now projecting a 9% increase in aircraft deliveries next year," the research firm said in a note. "In addition, the 787 flight testing remains on track and Boeing looks very likely to secure the USAF tanker contract."

• Goldman Sachs has lifted Baidu's (BIDU) price target to $675 per share from $575 per share, following Google's (GOOG) withdrawal from China. Google redirected traffic at its China site to its Hong Kong site. Goldman Sachs said it expects the Hong Kong site to be either slow or unavailable due to the flood in traffic, and estimates that Baidu may capture between 33% and 75% of Google.cn traffic.

• The new CEO for E-Trade Financial Corporation (ETFC) was originally from Citigroup (C).




Next Week’s Reports



Monday – February personal income and spending data as well as the Personal Consumption and Expenditure (PCE) price index.

Tuesday – The March consumer confidence index.

Wednesday - Report on weekly U.S. petroleum supplies, the March ADP employment report, the March Chicago purchasing managers' index, and February's factory orders.

Thursday – The weekly report on initial jobless claims, as well as February's construction spending, the Institute for Supply Management's manufacturing index, and automobile sales for March.

Friday - March's non-farm payrolls and the unemployment rate.



Outlook



The first quarter closes this week which should still see quite a bit of bullish movement occurring. With the CBOE Market Volatility Index (VIX) trading at its largest premium to SPX’s historical volatility in a decade, we will probably see quite a bit of tug-a-war between the bulls and the bears, particularly until the earnings season is in full swing in April. Historically, April has delivered the biggest average returns of any month. Fund managers will also help the bulls during this time, as they buy the best-performing stocks and sell the worst-performing stocks to improve the appearance of a fund's holdings for end-of-quarter reporting.



Companies to Keep an Eye On



Companies that are looking promising for the short-to-mid-term future. Consider buying shares in these companies after checking them out thoroughly.

Delcath Systems (Nasdaq: DCTH)

Caterpillar (CAT)

Deer Consumer Products (DEER)

DeVry (DV)

Aflac Incorporated (AFL)

Catalyst Health Solutions Inc. (CHSI)

Hospira (HSP)

Teva Pharmaceuticals (TEVA)

AthenaHealth (ATHN)

Bristol-Myers Squibb Company's (BMY)




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