Cautious Follow-Through Day Confirms New Rally

ByAdam Sarhan

Cautious Follow-Through Day Confirms New Rally.Looking at the market, Monday, Day 16 of the latest rally attempt, confirmed the latest rally attempt when a “cautious follow-through day” was produced by the Nasdaq composite. This means that we will now be looking for any distribution days (high volume declines) to emerge to gauge the strength of this nascent rally. So far, it is a much welcomed 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 now open to start buying high quality breakouts. Trade accordingly.

Day 16: Still Waiting For A Follow-Through Day

ByAdam Sarhan

Monday, March 1, 2010 Market Commentary: Stocks and the dollar rose after the latest round of M&A news was announced. Monday marked Day 16 of the current rally attempt but the market failed to produce a proper follow-through day because the gains fell short of the +1.7% guideline. Volume, a critical gauge of institutional demand, was…

Day 15: Stocks Close Below Resistance

ByAdam Sarhan

Friday, February 26, 2010 Market Commentary: Stocks closed with modest gains on Friday which marked the 15th day of the current rally attempt. Volume, a critical gauge of institutional demand, was mixed compared to Thursday’s levels; higher on the Nasdaq exchange and lower on the NYSE. Advancers led decliners by a 12-to-17 ratio on the NYSE but trailed by 13-to-14 rato on…

Day 14: Stocks Close Below Resistance

ByAdam Sarhan

Thursday, February 25, 2010 Market Commentary: Stocks closed lower but off their intraday lows after the US dollar pulled back as concern eased over tepid economic data and the fate of the EU. Volume, a critical gauge of institutional demand, was higher than Wednesday’s totals which suggested large institutions were selling stocks. Decliners led advancers by a 10-to-9 ratio…