The Red Roadmaster’s US Market Monthly Re-cap + Stock Talk ™

30 March 2010 Date Line: Hong Kong (SAR) China

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Red’s Bull Alert:

Re-cap of the US Stock Market Action for the session ending 29 March 2010

The DJIA is up 4.5% for the Q so far, down from gains of 7.4% in the prior Q, and the NAS is on track for a 6% gain this Q vs an increase of 6.9% in Q-4 Y 2009.

 

 

 

              US stocks rose Monday as miners and energy companies advanced on USD weakness.

The USD's decline boosted commodities prices, including Crude Oil.

Major manufacturers and industrials, the Qs top-performing sector, fared well, with Boeing Co. + 2.1% and Caterpillar Inc + 1.7%. The S&P industrials index .GSPI has risen 13% so far in Q-1.

The DJIA gained 45.50 ps, or 0.42% to close at 10,895.86, its highest close since September 2008, the S&P 500 rose 6.63 pts, or 0.57% to close at 1,173.22, and the NAS tallied up a + 9.23 pts, or 0.39%, to end the session at 2,404.36.

              US equity markets will be closed on Friday in observance of the Good Friday holiday.

The benchmark S&P 500 is up 5.2% or this Q so far, compared with Q-4 Y 2009's gain of 5.5%. The S&P 500 is up 73.4% since bottoming on March 9, 2009.

On NAS, Apple Inc shares were the top booster, ending at a record US$232.39 after the iPhone maker said shoppers can buy its newest portable iPad computer this weekend at Apple and Best Buy stores. Best Buy is the USA's largest electronics retailer.

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After the Bell there was more news on Apple as the Wall Street Journal reported that the company was developing a new iPhone for Verizon Wireless, sparking an after-hours run-up in the shares of Apple and Verizon Communications Inc. Apple shares rose more than 1% to US$235.44 after the closing Bell, while Verizon, a Dow component, jumped almost 4% to US$31.62/shr. Both will likely be active in Today's session.

In economic news: US consumer spending rose as expected in February for a fifth straight month, while stagnant incomes pushed savings to their lowest level since October 2008, the US government said.

Friday, the government will release its monthly non-farm payrolls report, which analysts expect will show a turnaround in new jobs added by the US labor market in March.

                      Broad-based strength was seen in commodities on the day.

A weak USD heightened today's action to the Northside. Industrial commodities (+2.1%), energy commodities (+1.9%) and precious metals (+1.6%) led the move North.

May Copper futures closed 3.9% higher at US$3.53 lb. Declining inventory levels, in the face of strong demand, was the primary catalyst.

Silver futures also gained. May Silver trended higher throughout the day closing up 2.8% at US$17.38 oz. Gains in Gold futures were limited. April Gold closed 0.5% higher at US$1110.30 oz.

Crude oil futures rallied to the $82.50 level in the morning. They traded relatively flat for the remainder of the session. The May contract closed 2.7% higher at $82.16 per barrel.

Volume and Breadth: about 7.49B/shrs traded on the NYSE, the AMEX and the NAS, below last year's estimated daily average of 9.65B/shrs. Advancers on the NYSE beat decliners by 9 to 4, and on the NAS 7 stocks rose for eech 5 that fell.

                               Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance

Mar-29-2010 QQQQ 48.23 Bullish (0.26) 48.05 49.55

Mar-29-2010 DIA 108.92 Neutral (0.15) 108.61 109.41

Mar-29-2010 SPY 117.32 Neutral (0.20) 116.93 118.71

Stocks to Watch Toda

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Alcoa, Inc. (AA), Chesapeake Energy (CHK), Freeport-McMoRan (FCX), and First Solar, Inc. (FSLR).

Alcoa Inc. (AA) Up-date 16 Last Look: March 18, 2010

March 30, 2010 .

Paul A. Ebeling, Jnr. Analyst

Today let’s look at Alcoa, Inc. (AA), one of the world’s top producers of aluminum, from a Technical POV. The overall indications, after Monday’s (March 29) market action, are Bullish: in the near term Bullish, mid-term Neutral, and long term Bullish. The recent Candle Stick analysis: Bearish

**Chart by: http://www.stockta.com

Latest News and Opinion: Dow Gains 45.50 as Energy Stocks Rise

http://online.wsj.com/article/SB10001424052702304370304575151310595901330.html?ru=yahoo&mod=yahoo_hs

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Monday’s Market Action Close 14.44 +.17 Volume 23,826,300/shrs

There is a DOJI on March 29 and one Gap open up in March 17 at 13.80/14.00, the near term resistance is 15.04, support at 14.31 and the 50 day (EMA) exponential moving average is 13.95.

This is Alcoa, Inc. (AA): Alcoa is among the world's top producers of alumina (aluminum's principal ingredient, processed from bauxite) and aluminum. Its vertically integrated operations include bauxite mining, alumina refining, and aluminum smelting; primary products include alumina and its chemicals, automotive components, and sheet aluminum for beverage cans. The company's non-aluminum products include fiber-optic cables. Major markets include the aerospace, automotive, and construction industries. In 2007 Alcoa offered to buy what was then the world's #3 aluminum producer, Alcan, for US$33B but was trumped by Rio Tinto's US$40B offer. The next year it sold its packaging business to the Rank Group.

The Competitive Landscape

Demand comes largely from the manufacturers of durable goods like motor vehicles, machinery, containers, and construction steel. The profitability of individual companies depends largely on efficient operations, because most products are commodities sold based on price. Big companies have large economies of scale in production. Accordingly, most producers of secondary products buy raw metal from the large producers. Small companies can compete by operating efficient local mini-mills or producing specialty products. The industry is highly automated: average annual revenue per worker is close to US$300,000.

Alcoa, Inc (HQ)

Chairman Alain J. P. Belda

390 Park Ave.New York, NY 10022-4608United States  Phone: 212-836-2600Fax: 212-836-2815

http://www.alcoa.com

Alcoa Subsidiaries Alcoa Alunimio S.A.Alcoa Home Exteriors, Inc.Kawneer Company, Inc.

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Chesapeake Energy (CHK) Up-date 2 Last Look: December 28, 2009

March 30, 2010

Paul A. Ebeling, Jnr. Analyst

Today, let’s look at Chesapeake Energy (CHK), the central US oil and gas development and production company, from a Technical POV. The overall indications, after Monday’s (March 29) market action, are Bearish, in the near term Bearish, mid-term Bearish, and long term Bearish. The recent Candle Stick analysis is: Bearish

**Chart by: http://www.stockta.com

Latest News and Opinion: Rob's Wrap: Shanghai, CREE, CHK, SD

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http://secure2.thestreet.com/cap/login/rm_mbp_yahoo_bd.jsp?cm_ven=YAHOO&cm_cat=PREMIUM&cm_ite=003190&flowid=b57346ea43&url=http://www.thestreet.com/p/_yahoo/rmoney/technicalanalysis/10713406.htm

Monday’s Market Action Close 23.28 + .91 Volume 19,658,600/shrs

There is a Bearish engulfing Candle on March 25 and no Gaps open up on the Chart and the near term resistance is 23.61, support at 23.01, and the 50 day (EMA) exponential moving average is 25.23.

This is Chesapeake Energy (CHK): This exploration and production company concentrates on building natural gas reserves through the acquisition and development of oil and gas assets across the US. The Midcontinent region accounts for the more that a third of the company's estimated proved reserves of 12 trillion cu. ft. of natural gas equivalent, but Chesapeake also has assets along the Gulf Coast, in the Permian Basin, Appalachia, and in the Ark-La-Tex region. In 2008 it owned or had stakes in 41,200 producing oil and natural gas wells that produced 2.3 billion cu. ft. of natural gas equivalent per day, 92% of which was natural gas.

Competitive Landscape

Demand is driven by economic activity, population growth, and energy efficiency for residential, industrial, and transportational uses of oil and gas. Profitability of individual companies is driven by the success rate of new wells drilled and the ability to increase production from existing wells. Large companies are advantaged by access to capital, including the ability to buy or merge smaller companies. Small companies compete by focusing on, and developing expertise in, a few geographic areas. The industry is capital intensive: average annual revenue per employee is about US$5MM.

Oil and Gas Exploration and Production Industry ForecastThe output of US natural gas extraction and crude petroleum production is forecast to decline at an annual compounded rate of 4% between 2008 and 2013. Data Sourced: December 2009

Chesapeake Energy Corporation (HQ)

Aubrey K. McClendon Co-Founder, Chairman, Chief Exec. Officer

6100 North Western AvenueOklahoma City, OK 73118United States Phone: 405-848-8000Fax: 405-843-0573

http://www.chk.com

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Freeport-McMoRan Copper & Gold Inc. (FCX) Up-date 21 Last Look: February 19, 2010

March 30, 2010

Paul A. Ebeling, Jnr. Analyst

Today, let’s look at Freeport-McMoRan (FCX), the giant Gold and Copper miner, from a Technical POV. The overall indications, after Monday’s (March 29) market action, are Bullish: in the near term Bullish. mid-term Bullish, and long term Neutral. The recent Candle Stick analysis is: Bearish

**Chart by: http://www.stockta.com

Latest News and Opinion: Freeport-McMoRan announces dividends payable May 1 to holders as of April 15 

http://finance.yahoo.com/news/FreeportMcMoRan-announces-apf-661233551.html?x=0&.v=1

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Monday’s Market Action Close 82.88 + 3.71 Volume 17,317,900/shrs

There is a Bearish Engulfing Candle on March 25, and two Gaps open up between March 1st and 29th at 75.25/80.50, the near term resistance is 83.75 support at 82.52, and the 50 day (EMA) exponential moving average is 78.30. This is Freeport-McMoRan (FCX): Freeport-McMoRan Copper & Gold, Inc. engages in the exploration, mining, and production of mineral properties primarily in Indonesia, North America, South America, and Africa. It focuses on the copper, gold, molybdenum, and silver prospects. The company holds interests in the Grasberg open pit and Deep Ore Zone projects in Indonesia. It also owns interests in the Grasberg, Kucing Liar, Mill Level Zone/Deep Mill Level Zone, and Big Gossan projects in Indonesia. In addition, the company holds interests in the Morenci project in Greenlee County, Arizona; the Safford project in Graham County, Arizona; the Bagdad project in Yavapai County in west-central, Arizona; the Sierrita project in Pima County, Arizona; the Miami project in Gila County, Arizona; the Chino and Tyrone project in southwestern New Mexico in Grant County; the Henderson project located approximately 42 miles west of Denver, Colorado; and the Climax molybdenum mine in Colorado, which are located in North America. Further, it owns interests in the Cerro Verde project located 20 miles southwest of Arequipa, Peru; the Candelaria project situated approximately 12 miles south of Copiapo in northern Chiles Atacama province; the Ojos del Salado project located approximately 10 miles east of Copiapo in northern Chiles Atacama province; the El Abra project situated 47 miles north of Calama in Chiles El Loa province, which are located in South America. Additionally, the company holds interests in the Tenke Fungurume project in the Democratic Republic of Congo; and the Atlantic Copper project in Huelva, Spain. At December 31, 2007, it had total consolidated recoverable proven and probable reserves of approximately 93.2 billion pounds of copper; 41.0 million ounces of gold; 2.0 billion pounds of molybdenum; 230.9 million ounces of silver; and 0.6 billion pounds of cobalt.

The Competitive Landscape

Demand is driven by industrial demand and economic growth, both domestic and foreign. Individual company profitability depends on volume and operating efficiency. Large companies can afford to discover and develop new deposits and increase reserves. Small companies typically own just one mine, limit exploration to that one property, and operate it as efficiently as possible. Metal ore mining is highly automated: annual revenue per employee is about US$300,000.

Metal Ore Mining Industry ForecastThe output of US metal mining is forecast to grow at an annual compounded rate of 5.4 % between 2008 and 2013.

Freeport-McMoRan (HQ)

Chief Exec. Officer, Pres Richard C. Adkerson

One North Central AvenuePhoenix, AZ 85004-4414United States Phone: 602-366-8100

http://www.fcx.com

Freeport-McMoRan Subsidiaries

Atlantic Copper, S.A., Chino Mines Company and Climax Molybdenum Company

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First Solar, Inc. (FSLR) Up-date 5 Last Look: February 19, 2010

March 30, 2010

Paul A. Ebeling, Jnr. Analyst

Today let’s look at First Solar, Inc. (FSLR), the developer and maker of photovoltaic (PV) cells, from a Technical POV. The overall indications, after Monday’s (March 29) market action, are Neutral: in the near term Bullish, mid-term Neutral, and long term Neutral. The recent Candle Stick analysis is: Neutral

**Chart by: http://www.stockta.com

Latest News and Opinion: Solar Shares Rise As Credit Suisse, Barclays Turn More Bullish

http://blogs.barrons.com/techtraderdaily/2010/03/29/solar-shares-rise-as-credit-suisse-barclays-turn-more-bullish/?mod=yahoobarrons

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Monday’s Market Action Close 119.37 + 2.87 Volume 2.148,800/shrs

There are no Gaps open up on the Chart, the near term resistance is 123.66 support at 116.73, and the 50 day (EMA) exponential moving average is 115.70.

This is First Solar, Inc. (FSLR): The Company designs, manufactures, and sells solar electric power modules using a proprietary thin film semiconductor technology. The company’s solar modules employ a thin layer of cadmium telluride semiconductor material to convert sunlight into electricity. It sells its products to project developers, system integrators, and operators of renewable energy projects primarily in Europe. First Solar also focuses on designing and deploying commercial solar projects for utilities in the United States. The company was founded in 1999. It was formerly known as First Solar Holdings, LLC, and changed its name to First Solar Holdings, Inc. and subsequently to First Solar, Inc. in 2006. The company is headquartered in Tempe, Arizona

.Industries Where First Solar CompetesElectronicsElectrical ProductsPower Generation & Storage (primary)

First Solar, Inc. (HQ)

Chairman and Chief Exec. Officer; Michael J. Ahearn 350 West Washington StreetSuite 600Tempe, AZ 85281-1244United StatesPhone: 602-414-9300Fax: 602-414-9400

http://www.firstsolar.com

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Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Always research your own investments and consult with a registered investment adviser or licensed stock broker before investing.

Information contained in the Redroadmaster Stock Talk report will contain “forward looking statements” as defined under section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward looking statements. These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

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