Dow Hits New 2009 Closing High As Dollar Falls


December 1, 2009

Tuesday’s Market Commentary:

Stocks rallied across the globe as the dollar fell and the Dubai World concerns eased. Volume was lighter than Monday’s levels as the major averages advanced. Advancers trumped decliners by almost a 4-to-1 ratio on the NYSE and by a 2-to-1 ratio on the Nasdaq exchange. There were 45 high-ranked companies from the Leaders List making a new 52-week high and appearing on the BreakOuts Page, higher from the 13 issues that appeared on the prior session. New 52-week highs reported outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.

Dubai Fears Ease:

Stocks closed higher on the first trading day of the month as news spread that Dubai World entered talks to restructure nearly half its debt. Dubai World is trying to restructure $26 billion as its deadline for repayment approaches. Last week, news broke that Dubai World might default on its debt which rattled capital markets. However, the bulls quickly showed up and defended support as the initial fears subsided. Since the credit crisis began in 2007, the financial world has lost over $1.7 trillion. Therefore, if Dubai World defaults it will be the latest high profile default which will hurt investor’s psyche.

Economic Data:

Elsewhere, HSBC said its index, which measures China’s manufacturing, rose in November and echoed the Institute for Supply Management (ISM)’s U.S. manufacturing index. The ISM said that U.S. manufacturing rose in November for a fourth consecutive month which is a healthy data point for the global recovery. Chinese manufacturing experienced its largest increase in five years as the global economy continues to “recover.” Turning to the housing market, the National Association of Realtors said the number of contracts to buy previously owned homes in the U.S. unexpectedly rose +3.7% in October.

Gold Hits A New All-Time High As The Dollar Falls:

The weaker dollar sent stocks and a slew of commodities higher on Tuesday. Gold rallied for the 11th time in 12 sessions and hit a fresh all time high above $1,200 an ounce as investors continue buying the yellow metal. Gold stocks have benefited handsomely from gold’s impressive rise in recent months. Gold stocks continue to be a strong area of strength in this market. Other leadership can be found in Chinese stocks or large cap US technology names. Unfortunately, outside of those areas, leadership has largely dried up which continues to be the bane for this rally.


Here are more articles you may like

Claim Your Free Guide Today

Give us your email and we will give you the tools to change your life. 


Learn about Early Entry Points & much more...

© ChartYourTrade | Contact us:

Disclaimer: All communication from ChartYourTrade is general in nature and for educational and general informational purposes only. Under no circumstance should it be considered personalized investment advice. All our work is general in nature and not specific to any one person. All the information on this site and/or that originates from us, or any of our partners or affiliates, is for educational and informational purposes only and is NOT a recommendation to buy or sell anything. To avoid any conflicts of interest, we do not have a working relationship with any of the companies mentioned in our work. Furthermore, we may have a long, short, or no position in any, or all, of the names that appear in our work and they may change at any time without notice. Investing and trading in capital markets or using margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you as well as for you. Before you decide to invest or trade in capital markets you should carefully consider your investment objectives, level of experience, and risk appetite, among other factors. The possibility exists that you could sustain a loss of some, all, or more of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with capital markets, investing/trading, and seek specific investment advice from an independent financial advisor and other professionals. Remember all the information we provide is for educational and general informational purposes only and is subject to change without notice.

Charts and Data are courtesy of MarketSmith Incorporated. Join MarketSmith here.

Terms of Service