Stocks tanked after S&P Rating Services lowered Greek’s debt to junk and cut Portugal’s rating. This sent many European stock market’s plunging to their worst single day declines since November as fear spread that other nations will default on their debt. Volume totals on Tuesday were reported higher compared to Monday’s totals which marked another distribution day for the major averages. Decliners trumped advancers by over a 4-to-1 ratio on both major exchanges. Meanwhile, new 52-week highs easily trumped new 52-week lows. There were 28 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 than the 91 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally.
EU Downgrades Shake Confidence:
Stocks got smacked as concern spread that other European nations may default on their debt. So far, Greece, Portugal, Spain and Ireland are the weakest nations in the EU. The news sent the dollar surging which invariably put pressure on dollar denominated assets: mainly stocks and commodities.
Goldman Executives Testify On Capital Hill:
On the homefront, the much anticipated Goldman Sachs (GS) testimony began on Capital Hill. Several Goldman executives, including Fabrice Tourre the young trader at the center of the investigation, spent their day testifying on Capital Hill. Mr. Tourre defended himself and read a prepared statement on his role marketing the Abacus collateralized debt obligation (CDO).
Market Action- Rally Under Pressure:
It is important to note that the major averages have been steadily rallying since early February and a pullback of some sort should be expected. Tuesday marked the latest distribution day since the rally was confirmed on the March 1, 2010 follow-through day (FTD). According to the paper, there are 7 distribution days for the NYSE, 6 for the S&P 500, 5 for the Dow, and 2 for the Nasdaq. This puts subtle pressure on this 9-week rally.
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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 Tank on EU Downgrades & Goldman Testimony
Tuesday, April 27, 2010
Market Commentary:
Stocks tanked after S&P Rating Services lowered Greek’s debt to junk and cut Portugal’s rating. This sent many European stock market’s plunging to their worst single day declines since November as fear spread that other nations will default on their debt. Volume totals on Tuesday were reported higher compared to Monday’s totals which marked another distribution day for the major averages. Decliners trumped advancers by over a 4-to-1 ratio on both major exchanges. Meanwhile, new 52-week highs easily trumped new 52-week lows. There were 28 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 than the 91 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally.
EU Downgrades Shake Confidence:
Stocks got smacked as concern spread that other European nations may default on their debt. So far, Greece, Portugal, Spain and Ireland are the weakest nations in the EU. The news sent the dollar surging which invariably put pressure on dollar denominated assets: mainly stocks and commodities.
Goldman Executives Testify On Capital Hill:
On the homefront, the much anticipated Goldman Sachs (GS) testimony began on Capital Hill. Several Goldman executives, including Fabrice Tourre the young trader at the center of the investigation, spent their day testifying on Capital Hill. Mr. Tourre defended himself and read a prepared statement on his role marketing the Abacus collateralized debt obligation (CDO).
Market Action- Rally Under Pressure:
It is important to note that the major averages have been steadily rallying since early February and a pullback of some sort should be expected. Tuesday marked the latest distribution day since the rally was confirmed on the March 1, 2010 follow-through day (FTD). According to the paper, there are 7 distribution days for the NYSE, 6 for the S&P 500, 5 for the Dow, and 2 for the Nasdaq. This puts subtle pressure on this 9-week rally.
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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