Tuesday, September 28, 2010
Stock Market Commentary:
The major averages ended higher as investors looked past the latest round of lackluster economic data. Volume totals were reported higher on the NYSE and on the Nasdaq exchange compared to Monday’s session which signaled large institutions were aggressively buying stocks. Advancers led decliners by over a 2-to-1 ratio on the NYSE and on the Nasdaq exchange. New 52-week highs easily outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange. There were 70 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 68 issues that appeared on the prior session.
Stocks Look Past Lousy Confidence Data:
Stocks spent the first half of the session trading in the red as investors digested the latest round of mixed economic data. At 9:00AM EST, the S&P Case-Shiller housing price index (HPI) was released which showed a modest uptick in home prices around the country. The news was good, not great. One hour later, stocks fell after consumer confidence plunged below estimates. The Conference Board’s consumer confidence index slid to 48.5, which was down from last month’s reading of 53.2. Despite the negative data, it was encouraging to see the benchmark S&P 500 index fall to a 1132 before the bulls showed up and defended support. Longstanding readers of this column know that 1131 was resistance for most of the summer and has now become near term support.
Market Commentary- Confirmed Rally:
The action since this rally was confirmed on the September 1, 2010 follow-through day (FTD) has been strong. Looking forward, the window is open for disciplined investors to carefully buy high-ranked stocks, while many pundits are expecting that markets may consolidate following recent gains. It was encouraging to see the bulls show up and defend support (formerly resistance) again today. The next level of support for the major averages is their respective 200-day moving average (DMA) lines while the next level of resistance is their respective April highs. Trade accordingly.
Sarhan Consulting provides both global macro and equity only consulting services to institutional clients around the world.For years, its clientele has participated in the firm’s objective market-based outlook, which has one primary goal: to provide stable trading ideas across all asset classes.
Sarhan Capital’s consulting arm allows clients to participate in the idea generation process and be privy to many of Sarhan’s best ideas long before they are highlighted in other publications. In addition, clients receive objective feedback on their own ideas and are alerted each time Sarhan Capital traders buy and sell. Many institutional clients including hedge funds, private family offices, brokerages, registered investment advisers, and corporations, have turned to Sarhan Capital for personalized advisory/consulting services in recent years.
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 Look Past Lousy Confidence Data
Tuesday, September 28, 2010
Stock Market Commentary:
The major averages ended higher as investors looked past the latest round of lackluster economic data. Volume totals were reported higher on the NYSE and on the Nasdaq exchange compared to Monday’s session which signaled large institutions were aggressively buying stocks. Advancers led decliners by over a 2-to-1 ratio on the NYSE and on the Nasdaq exchange. New 52-week highs easily outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange. There were 70 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 68 issues that appeared on the prior session.
Stocks Look Past Lousy Confidence Data:
Stocks spent the first half of the session trading in the red as investors digested the latest round of mixed economic data. At 9:00AM EST, the S&P Case-Shiller housing price index (HPI) was released which showed a modest uptick in home prices around the country. The news was good, not great. One hour later, stocks fell after consumer confidence plunged below estimates. The Conference Board’s consumer confidence index slid to 48.5, which was down from last month’s reading of 53.2. Despite the negative data, it was encouraging to see the benchmark S&P 500 index fall to a 1132 before the bulls showed up and defended support. Longstanding readers of this column know that 1131 was resistance for most of the summer and has now become near term support.
Market Commentary- Confirmed Rally:
The action since this rally was confirmed on the September 1, 2010 follow-through day (FTD) has been strong. Looking forward, the window is open for disciplined investors to carefully buy high-ranked stocks, while many pundits are expecting that markets may consolidate following recent gains. It was encouraging to see the bulls show up and defend support (formerly resistance) again today. The next level of support for the major averages is their respective 200-day moving average (DMA) lines while the next level of resistance is their respective April highs. Trade accordingly.
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Sarhan Consulting provides both global macro and equity only consulting services to institutional clients around the world. For years, its clientele has participated in the firm’s objective market-based outlook, which has one primary goal: to provide stable trading ideas across all asset classes.
Sarhan Capital’s consulting arm allows clients to participate in the idea generation process and be privy to many of Sarhan’s best ideas long before they are highlighted in other publications. In addition, clients receive objective feedback on their own ideas and are alerted each time Sarhan Capital traders buy and sell. Many institutional clients including hedge funds, private family offices, brokerages, registered investment advisers, and corporations, have turned to Sarhan Capital for personalized advisory/consulting services in recent years.
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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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