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Stocks Fall on Negative Economic & Earnings Data

Thursday, January 28, 2010 Market Commentary: Stocks got smacked on Thursday as the dollar and shorter-term Treasuries rose after a series of negative economic data was

Adam Sarhan January 28, 2010

Day 1 Of A New Rally Attempt

Looking at the market, Wednesday marked Day 1 of a new rally attempt which means that as long as Wednesday’s lows are not breached, the earliest a possible follow-through day could emerge will be this Monday. However, if Wednesday’s lows are taken out, then the day count will be reset and the chances for a steeper correction increase markedly. It is also important to see how the major averages react to their respective 50 DMA lines. Until they all close above that important level the technical damage remaining on the charts is a concern. So far, the market’s reaction has been tepid at best to the latest round of economic and earnings data. Remember that the recent series of distribution days coupled with the deleterious action in the major averages suggests large institutions are aggressively selling stocks. Disciplined investors will now wait for a new follow-through day to be produced before resuming any buying efforts. Until then, patience is key.

Adam Sarhan January 27, 2010

Rally Attempt Ends As Stocks Negatively Reverse

Looking at the market, Tuesday’s ominous action effectively ended the current rally attempt and suggests a steeper correction may unfold. It is also important to see how the major averages react to their respective 50 DMA lines. Until they all close above that important level the technical damage remaining on the charts is a concern. So far, the market’s reaction has been tepid at best to the latest round of economic and earnings data. Remember that the recent series of distribution days coupled with the deleterious action in the major averages suggests large institutions are aggressively selling stocks. Disciplined investors will now wait for a new follow-through day to be produced before resuming any buying efforts. Until then, patience is paramount.

Adam Sarhan January 26, 2010

Day 1 Of A New Rally Attempt

Looking at the market, Monday marked Day 1 of a new rally attempt which means that as long as Monday’s lows are not breached, the earliest a possible follow-through day could emerge will be this Thursday. However, if Monday’s lows are taken out, then the day count will be reset and the chances for a steeper correction increase markedly. It is also important to see how the major averages react to their respective 50 DMA lines. Until they all close above that important level then there will be a lot of technical damage on the chart. So far, the market’s reaction has been tepid at best to the latest round of economic and earnings data. Remember that the recent series of distribution days coupled with the deleterious action in the major averages suggests large institutions are aggressively selling stocks. Disciplined investors will now wait for a new follow-through day to be produced before resuming any buying efforts. Until then, patience is key.

Adam Sarhan January 25, 2010

46 Week Rally Ends; Market In A Correction

The major averages and leading stocks are now in a correction as the major averages sliced and closed below their respective multi month upward trend lines and their 50 DMA lines on Friday. So far, the market’s reaction has been tepid at best to the latest round of economic and earnings data. The recent series of distribution days coupled with the deleterious action in the major averages suggests large institutions are aggressively selling stocks. The market just ended its 46th week since the March lows and we are now waiting for a new follow-through day to be produced before resuming any buying efforts. Until that occurs, patience is key, and the path of least resistance is down. Trade Accordingly.

Adam Sarhan January 22, 2010

Dow Closes Below 50 DMA Line on Tepid Earnings & Economic Data

The major averages and leading stocks are pulling back to digest their recent gains as investors make their way through the latest round of economic and earnings data. So far, the market’s reaction has been tepid at best which puts serious pressure on the current rally. Until a clear picture can be formed as to how companies fared last quarter, one could easily expect to see more of this sideways to lower action to continue. The market is in the middle of its46th week since the March lows and the rally remains intact, albeit under serious pressure from our point of view. The Dow Jones Industrial Average sliced and closed below its 50 DMA line on heavy volume for the first time since October which is an ominous sign. The Nasdaq and the S&P 500 closed above their respective 50 DMA lines which, in the near term, is a healthy sign. Now that the market is clearly under pressure one would be wise to adjust their exposure accordingly.

Adam Sarhan January 21, 2010

Stocks Get Smacked on A Busy Wednesday

For the most part, the major averages and leading stocks are pausing to digest their recent gains as investors make their way through the latest round of economic and earnings data. Until a clear picture can be formed as to how companies fared last quarter, one could easily expect to see more of this sideways action to continue. The market just began its 46th week since the March lows and the rally remains intact as long as the major averages continue trading above their respective 50-day moving average (DMA) lines. Trade accordingly.

Adam Sarhan January 20, 2010

Strong Open After MLK Weekend

For the most part, the major averages and leading stocks are acting well as investors continue to digest the slew of economic and earnings data being released each day. Until a clear picture can be formed as to how companies fared last quarter, one could easily expect to see more of this sideways action to continue. The market just began its 46th week since the March lows and the rally remains intact as long as the major averages continue trading above their respective 50-day moving average (DMA) lines.

Adam Sarhan January 19, 2010

Earnings Season Begins Stocks; Stocks Fall

For the most part, the major averages and leading stocks are beginning to weaken as investors continue to digest the slew of economic and earnings data being released each day. Until a clear picture can be formed as to how companies fared last quarter one could easily expect to see more of this sideways action to continue. The market just completed its 45th week since the March lows and the rally remains intact as long as the major averages continue trading above their respective 50-day moving average (DMA) lines. Until those levels are breached, the bulls deserve the benefit of the doubt.

Adam Sarhan January 15, 2010

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