Morning Stock Report – Stocks to Watch 6-7-09

International Markets

• Market:

-                      US markets closed on Friday.

-                      Weekly recap. US stocks fall for 3^rd straight week on concerns job losses and drop in consumer confidence will prolong the recession. Dow -157.65 pts -1.9%, S&P500 -896.42 pts -2.5%, Russell -497.21 -3.1%.

-                      Bonds, US 10yr yielding 3.498%

• Commodities:

-                      Gold, little changed in London post Thurs nights Job data.

-                      Copper, weaker on concerns labour market will damage the recovery in demand.

-                      China Investment Corp (CIC), buys a 17% stake in Teck Resources.

Technical Analysis:
· ASX200
- Focus has turned to 3550 as main downside target. Initial impressions of 3715 being the major support has been removed due to the outstanding number of bearish looking sectors and stocks
- Choppy topping out process near to complete with downside to accelerate. Main focus on shorts while buying weakness should still be avoided for several weeks. Markets likely to surprise with the speed and size of the fall.
- Head and shoulders top formation also in place giving high probability that any strength is unlikely to exceed
last weeks high of 3956

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