The major averages ended higher as the dollar fell after Congress passed the historic health care bill. As expected, volume contracted compared to Friday’s options inflated levels on both major exchanges. Advancers led decliners by nearly a 2-to-1 ratio on the NYSE and the Nasdaq exchange. There were 45 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 37 issues that appeared on the prior session. New 52-week highs again overwhelmingly trumped new lows on both exchanges.
The Finances Of The Health Care Bill – Explained:
Late Sunday night, the US House of Representatives passed the historic health-care bill which will allow uninsured Americans to get medical coverage and add a whopping $940 billion in debt over the next decade. To pay for the plan, in 2013 the government wants to initiate new Medicare taxes on individuals who earn more than $200 thousand dollars a year and joint filers who earn more than $250 thousand dollars a year. Taxes will increase to 2.35% from 1.45% and a new 3.8% tax on unearned income such as dividends and interest will be created. Finally, there will be an excise tax of 2.3% on sale of medical devices.
Market Action- Confirmed Rally: 1 Distribution Day
The fact that there has only been one distribution day since the FTD bodes well for this nascent rally. It is also a welcome sign to see the market continue to improve as investors digest the latest round of stronger than expected economic and earnings data. Remember that now that a new rally has been confirmed, the window is open to start buying high quality breakouts. Trade accordingly.
Professional Money Management Services – Free Portfolio Review! Our skilled team of portfolio managers trade on what we see is happening, not what we think will happen. We remain fluid in our approach and only buy the best stocks when they are triggering proper technical buy signals. If you are not completely satisfied with the way your portfolio is being managed, Click here to email one of our portfolio managers. *Accounts over $250,000 please. ** Serious inquires only, please.
Host Of The #SmartMoneyCircle Podcast, Founder and CEO of 50 Park Investments. Adam provides weekly market updates to ChartYourTrade.com readers. He is a FORBES Contributor and is a frequent guest on all the major financial media outlets.
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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.
Stocks Rally After Health Care Passes
Monday, March 22, 2010
Market Commentary:
The major averages ended higher as the dollar fell after Congress passed the historic health care bill. As expected, volume contracted compared to Friday’s options inflated levels on both major exchanges. Advancers led decliners by nearly a 2-to-1 ratio on the NYSE and the Nasdaq exchange. There were 45 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 37 issues that appeared on the prior session. New 52-week highs again overwhelmingly trumped new lows on both exchanges.
The Finances Of The Health Care Bill – Explained:
Late Sunday night, the US House of Representatives passed the historic health-care bill which will allow uninsured Americans to get medical coverage and add a whopping $940 billion in debt over the next decade. To pay for the plan, in 2013 the government wants to initiate new Medicare taxes on individuals who earn more than $200 thousand dollars a year and joint filers who earn more than $250 thousand dollars a year. Taxes will increase to 2.35% from 1.45% and a new 3.8% tax on unearned income such as dividends and interest will be created. Finally, there will be an excise tax of 2.3% on sale of medical devices.
Market Action- Confirmed Rally: 1 Distribution Day
The fact that there has only been one distribution day since the FTD bodes well for this nascent rally. It is also a welcome sign to see the market continue to improve as investors digest the latest round of stronger than expected economic and earnings data. Remember that now that a new rally has been confirmed, the window is open to start buying high quality breakouts. Trade accordingly.
Professional Money Management Services – Free Portfolio Review!
Our skilled team of portfolio managers trade on what we see is happening, not what we think will happen. We remain fluid in our approach and only buy the best stocks when they are triggering proper technical buy signals. If you are not completely satisfied with the way your portfolio is being managed, Click here to email one of our portfolio managers. *Accounts over $250,000 please. ** Serious inquires only, please.
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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.
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