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Stocks Surge But Where’s The Volume?
It is well known that a market should not be considered “healthy” unless it trades above its rising 200-day moving average (DMA) line. The fact that all the major averages are below both their 50 & 200 DMA lines bodes poorly for the near term. That said, the bears will likely remain in control until the popular averages close above their important moving averages. Remember, we have seen these very strong light volume rallies in the past only to fail a few days later. Trade accordingly.
Adam Sarhan
June 10, 2010
Stocks Negatively Reverse After Beige Book Shows “Modest” Economic Growth
It is well known that a market should not be considered “healthy” unless it trades above its rising 200-day moving average (DMA) line. The fact that all the major averages are below both their 50 & 200 DMA lines bodes poorly for the near term. That said, the bears will likely remain in control until the popular averages close above their important moving averages and the euro catches a bid.
Adam Sarhan
June 9, 2010
Stocks End Mixed After Hitting Fresh 2010 Lows!
From our vantage point, the latest three day rally failed, evidenced by the ominous action in the major averages since Friday’s jobs report was released. It is well known that a market should not be considered “healthy” unless it trades above its rising 200-day moving average (DMA) line. The fact that all the major averages are below both their 50 & 200 DMA lines bodes poorly for the near term. That said, the bears will likely remain in control until the popular averages close above their important moving averages and the euro catches a bid.
Adam Sarhan
June 8, 2010
Selling Continues As Stocks Close At A Fresh 2010 Low
From our vantage point, the latest three day rally failed, evidenced by a new 2010 low close for the Dow Jones Industrial Average & benchmark S&P 500 index. It is well known that a market should not be considered “healthy” unless it trades above its rising 200-day moving average (DMA) line. The fact that all the major averages are below both their 50 & 200 DMA lines bodes poorly for the near term. That said, the bears will likely remain in control until the popular averages close above their important moving averages.
Adam Sarhan
June 7, 2010
Stocks Tank On Tepid Jobs Report; Euro Plunges To A New Multi-Year Low!
The author of “How To Make Money In Stocks”, the book that explains the fact-based investment system, has observed in the past that a market should not be considered to be in “healthy” shape unless at least 2 of the 3 major averages are trading above their rising 200-day moving average (DMA) lines. Only the Nasdaq Composite Index is currently above its long-term average, meanwhile the S&P 500 and Dow are encountering resistance. It would be very encouraging to see a proper follow-through-day (FTD) emerge for the benchmark S&P 500 and the Dow Jones Industrial Average to offer additional confirmation of a hearty new rally. Yet, acknowledging that we have a new confirmed rally based on the latest market improvements, the window is now considered to be open again to begin buying high-ranked stocks that trigger new technical buy signals but caution is sometimes the better part of valor.
Adam Sarhan
June 4, 2010
Market’s Edge Higher & Wait For Friday’s Jobs Report
The paper said Wednesday’s move in the Nasdaq composite marked a follow-through day for that index. We have received numerous emails and phone calls inquiring about the discrepancy in yesterday’s report. The simple fact is that the paper is using May 25, 2010 as Day 1 for the Nasdaq composite even though it closed lower on the day. From their perspective, the “essence of Day 1” occurred and that sufficed. It would be very encouraging to see a proper follow-through-day (FTD) emerge for the benchmark S&P 500 and the Dow Jones Industrial Average to confirm yesterday’s strong move. Now that we have a follow-through day, the window is open to begin buying high ranked stocks that trigger new technical buy signals. If you have any further questions on this matter, or would like to discuss your portfolio or the market, please feel free to email: info@sarhancapital.com.
Adam Sarhan
June 3, 2010
Where’s the Volume? Stocks Rally on Mixed Volume
Wednesday marked day 1 of a new rally attempt for the tech-heavy Nasdaq composite. It is important to note that the window is now open for a proper FTD to emerge for the benchmark S&P 500 and the Dow Jones Industrial Average. Even though, both indexes enjoyed strong gains today, volume, a critical indicator of institutional sponsorship, was lighter than the prior day’s level which prevented a proper FTD from emerging.
Adam Sarhan
June 2, 2010
Stocks & Euro Tank On Strong Economic Data
The Nasdaq composite sliced below Thursday’s lows which reset the day count for that index. Meanwhile, the Dow Jones Industrial Average just ended Day 3 of a new rally attempt which opens the window for a proper follow-through day to emerge. Elsewhere, as long last Tuesday’s lows (1040) are not breached in the S&P 500, the window remains open for a proper FTD to occur. However, if at anytime last Tuesday’s lows are breached in the S&P 500, then the day count will be reset. What does all of this mean for investors? Simple, the market remains in a correction which reiterates the importance of adopting a strong defense stance until a new rally is confirmed. Trade accordingly.
Adam Sarhan
June 1, 2010
Stocks Jump As China Eases Debt Woes
Thursday marked Day 3 of a new rally attempt for the benchmark S&P 500 Index and Day 1 for the other major averages. That said, as long Tuesday’s lows are not breached in the S&P 500, the earliest a proper follow-through day (FTD) could occur would be Friday. However, if at anytime Tuesday’s S&P 500 Index lows are breached, then the day count will be reset. What does all of this mean for investors? Simple, the market remains in a correction which reiterates the importance of adopting a strong defense stance until a new rally is confirmed. Trade accordingly.
Adam Sarhan
May 27, 2010
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