The major averages rallied on Thursday after a slew of US retailers reported stronger than expected same store sales. Volume totals on the NYSE and on the Nasdaq exchange were reported lower compared to Wednesday’s totals. Breadth was positive as advancers led decliners by about a 10-to-9 ratio on the NYSE, and by a 14-to-13 ratio on the Nasdaq exchange. New 52-week highs trumped new lows on both exchanges yet again. There were 36 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower from the 52 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally, so the recent expansion in leadership has been a welcome post-holiday improvement. However, the rising number of distribution days has raised some concerns.
Investor’s Digest A Slew Of Economic Data: Greece Woes, Jobless Claims & Healthy Retail Sales Data:
Stocks were under pressure as concern spread that Greece’s debt crisis may intensify and spread to other European nations which may hinder the global economic recovery. However, the fears subsided after European Central Bank President Jean-Claude Trichet said he doesn’t expect Greece to default. In the US, same store sales from many of the nation’s largest retailers topped estimates which bodes well for the economy. In addition, a slew of retailers hit fresh 52-week highs which bodes well for the entire retail sector. Elsewhere, the Labor Department said initial jobless claims unexpectedly rose +18,000 to +460,000 last week.
Market Action- Confirmed Rally:
The benchmark S&P 500 Index currently has 5 distribution days while the Nasdaq Composite and Dow Jones Industrial Average have 4 since the March 1, 2010 follow-though-day (FTD). These distribution days have not been damaging, however the simple fact that we currently have 5 distribution days for the S&P 500 suggests a more cautious approach may be prudent. Trade accordingly.
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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 On Healthy Retail Sales Data
Thursday, April 8, 2010
Market Commentary:
The major averages rallied on Thursday after a slew of US retailers reported stronger than expected same store sales. Volume totals on the NYSE and on the Nasdaq exchange were reported lower compared to Wednesday’s totals. Breadth was positive as advancers led decliners by about a 10-to-9 ratio on the NYSE, and by a 14-to-13 ratio on the Nasdaq exchange. New 52-week highs trumped new lows on both exchanges yet again. There were 36 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower from the 52 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally, so the recent expansion in leadership has been a welcome post-holiday improvement. However, the rising number of distribution days has raised some concerns.
Investor’s Digest A Slew Of Economic Data: Greece Woes, Jobless Claims & Healthy Retail Sales Data:
Stocks were under pressure as concern spread that Greece’s debt crisis may intensify and spread to other European nations which may hinder the global economic recovery. However, the fears subsided after European Central Bank President Jean-Claude Trichet said he doesn’t expect Greece to default. In the US, same store sales from many of the nation’s largest retailers topped estimates which bodes well for the economy. In addition, a slew of retailers hit fresh 52-week highs which bodes well for the entire retail sector. Elsewhere, the Labor Department said initial jobless claims unexpectedly rose +18,000 to +460,000 last week.
Market Action- Confirmed Rally:
The benchmark S&P 500 Index currently has 5 distribution days while the Nasdaq Composite and Dow Jones Industrial Average have 4 since the March 1, 2010 follow-though-day (FTD). These distribution days have not been damaging, however the simple fact that we currently have 5 distribution days for the S&P 500 suggests a more cautious approach may be prudent. Trade accordingly.
Professional Money Management Services- Free Portfolio Review:
Our skilled team of portfolio managers knows how to follow the rules of this fact-based investment system. If your portfolio is greater than $100,000 and you would like a free portfolio review, Click Here to get connected with one of our portfolio managers. ** 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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