Stocks and a host of commodities ended mixed after the latest round of economic data was released. All the major averages closed below their important 50 DMA lines on Wednesday and fell back into the multi month downward trendlines. This lackluster action suggests more sluggish action lies ahead. So far, the old adage, “Sell in May and Go Away,” appears to be working brilliantly. From our vantage point, the market is back in a correction as the major averages are now flirting with their multi-month upward trendlines.
Before Thursday’s open, the Labor Department said weekly jobless claims fell by -6,000 to 422,000 last week. A separate report showed productivity of U.S. workers slowed in the first quarter as labor costs rose. Productivity rose at a +1.8% annual rate after a +2.9% percent gain in the fourth quarter of 2010. After Thursday’s open, factor orders fell by -1.2% in April which missed estimates and was lower than March’s reading of +3.8%. In other news, Moody’s rating agency put a slew of bank stocks on “notice” and will begin investigating their credit ratings. Elsewhere, a slew of high profile retailers reported weaker than expected same store sales.
Market Outlook- Market In A Correction
From our point of view, the market is back in a correction now that all the major averages closed below their respective 50 DMA lines and downward trendlines. Since the beginning of May, we have urged caution as the major averages and a host of commodities began selling off. The next level of resistance is their respective 2011 highs. If you are looking for specific help navigating this market, please contact us for more information.
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.
Claim Your Free Guide Today
Give us your email and we will give you the tools to change your life.
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.
Upward Trendline Under Attack!
Thursday, June 02, 2011
Stock Market Commentary:
Stocks and a host of commodities ended mixed after the latest round of economic data was released. All the major averages closed below their important 50 DMA lines on Wednesday and fell back into the multi month downward trendlines. This lackluster action suggests more sluggish action lies ahead. So far, the old adage, “Sell in May and Go Away,” appears to be working brilliantly. From our vantage point, the market is back in a correction as the major averages are now flirting with their multi-month upward trendlines.
Jobless Claims, Same-Store Sales, and Factory Orders Fall, Productivity Edges Higher:
Before Thursday’s open, the Labor Department said weekly jobless claims fell by -6,000 to 422,000 last week. A separate report showed productivity of U.S. workers slowed in the first quarter as labor costs rose. Productivity rose at a +1.8% annual rate after a +2.9% percent gain in the fourth quarter of 2010. After Thursday’s open, factor orders fell by -1.2% in April which missed estimates and was lower than March’s reading of +3.8%. In other news, Moody’s rating agency put a slew of bank stocks on “notice” and will begin investigating their credit ratings. Elsewhere, a slew of high profile retailers reported weaker than expected same store sales.
Market Outlook- Market In A Correction
From our point of view, the market is back in a correction now that all the major averages closed below their respective 50 DMA lines and downward trendlines. Since the beginning of May, we have urged caution as the major averages and a host of commodities began selling off. The next level of resistance is their respective 2011 highs. If you are looking for specific help navigating this market, please contact us for more information.
Stock Market Research?
Global Macro Research?
Want To Follow Trends?
Learn How We Can Help You!
Here are more articles you may like
September 4, 2024: Another Leg Down
Sellers showed up yesterday (9/3/2024), and if we weren’t convinced the recent rally attempt had
August 30, 2024 — So Long for Now, Semiconductors
Although $NVDA had a good earnings report, the stock price fell, and the $SMH and
Podcast: Swing Trading
Over the last month, our guests Michael Lamothe and Dennis Wilborn have told us a
Adam Sarhan
Claim Your Free Guide Today
Give us your email and we will give you the tools to change your life.
FREE 7 DAY EMAIL COURSE
Learn about Early Entry Points & much more...
© ChartYourTrade | Contact us: website@chartyourtrade.com
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.
Charts and Data are courtesy of MarketSmith Incorporated. Join MarketSmith here.
Terms of Service