Friday, September 3, 2010
Stock Market Commentary:
Stocks ended higher this week as investors digested a slew of economic data. Friday’s reported volume totals were about even on the NYSE and slightly higher on the Nasdaq exchange compared to Thursday’s levels. Advancers led decliners by over a 3-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 71 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, nicely higher than the 47 issues that appeared on the prior session..
Monday -Tuesday’s Action- Stocks Edge Lower:
Stocks fell on Monday after the Commerce Department said disposable incomes, or the money left over after taxes, missed estimates while consumer spending rose +0.4%, matching estimates. Stocks ended mixed on Tuesday as investors digested a slew of economic data. Overnight, Asian stocks plunged, sending Japan’s Nikkei’s index to a 16-month low, which bodes poorly for other capital markets. Elsewhere, two stronger than expected economic reports: The S&P Case-Shiller Housing Index and the latest read on consumer confidence, helped lift stocks in the first half of the session. However, stocks fell after a weaker than expected PMI report and the minutes of the latest Fed meeting were released. The minutes of the latest Fed meeting showed more infighting at the Fed which suggests the Fed may be “running out of bullets” to stimulate a slowing economy.
Wednesday-Friday’s Action- Market’s Follow-Through, New Rally Confirmed!
Stocks soared on Wednesday, produced a proper follow-through day (FTD), and confirmed their latest rally attempt (which began on Friday) after fear eased that the global economic recovery was in peril. Stocks surged around the world as the US dollar and treasuries plunged after manufacturing in the US and China grew faster than economists estimated. The stronger than expected manufacturing data from China and the US helped allay the woes of a global economic slowdown.
Looking forward, the window is now open for disciplined investors to begin carefully buying high-ranked stocks again. It was encouraging to see a flurry of high-ranked leaders trigger fresh technical buy signals and break out of sound bases. The next important level to watch for the major averages are their respective 200-day moving average (DMA) lines. It is important to note that approximately 75% of FTDs lead to new sustained rallies, while 25% fail. In addition, every major rally in market history has begun with a FTD, but not every FTD leads to a new rally. Trade accordingly.
Market Action- Confirmed Rally:
Looking forward, the window is now open for disciplined investors to begin carefully buying high-ranked stocks again. It was encouraging to see a flurry of high-ranked leaders trigger fresh technical buy signals and break out of sound bases. The next important level to watch for the major averages are their respective 200-day moving average (DMA) lines. It is important to note that approximately 75% of FTDs lead to new sustained rallies, while 25% fail. In addition, every major rally in market history has begun with a FTD, but not every FTD leads to a new rally. Trade accordingly.
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.
Busy Week On Wall Street; Stocks Rally
Friday, September 3, 2010
Stock Market Commentary:
Stocks ended higher this week as investors digested a slew of economic data. Friday’s reported volume totals were about even on the NYSE and slightly higher on the Nasdaq exchange compared to Thursday’s levels. Advancers led decliners by over a 3-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 71 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, nicely higher than the 47 issues that appeared on the prior session..
Monday -Tuesday’s Action- Stocks Edge Lower:
Stocks fell on Monday after the Commerce Department said disposable incomes, or the money left over after taxes, missed estimates while consumer spending rose +0.4%, matching estimates. Stocks ended mixed on Tuesday as investors digested a slew of economic data. Overnight, Asian stocks plunged, sending Japan’s Nikkei’s index to a 16-month low, which bodes poorly for other capital markets. Elsewhere, two stronger than expected economic reports: The S&P Case-Shiller Housing Index and the latest read on consumer confidence, helped lift stocks in the first half of the session. However, stocks fell after a weaker than expected PMI report and the minutes of the latest Fed meeting were released. The minutes of the latest Fed meeting showed more infighting at the Fed which suggests the Fed may be “running out of bullets” to stimulate a slowing economy.
Wednesday-Friday’s Action- Market’s Follow-Through, New Rally Confirmed!
Stocks soared on Wednesday, produced a proper follow-through day (FTD), and confirmed their latest rally attempt (which began on Friday) after fear eased that the global economic recovery was in peril. Stocks surged around the world as the US dollar and treasuries plunged after manufacturing in the US and China grew faster than economists estimated. The stronger than expected manufacturing data from China and the US helped allay the woes of a global economic slowdown.
Looking forward, the window is now open for disciplined investors to begin carefully buying high-ranked stocks again. It was encouraging to see a flurry of high-ranked leaders trigger fresh technical buy signals and break out of sound bases. The next important level to watch for the major averages are their respective 200-day moving average (DMA) lines. It is important to note that approximately 75% of FTDs lead to new sustained rallies, while 25% fail. In addition, every major rally in market history has begun with a FTD, but not every FTD leads to a new rally. Trade accordingly.
Market Action- Confirmed Rally:
Looking forward, the window is now open for disciplined investors to begin carefully buying high-ranked stocks again. It was encouraging to see a flurry of high-ranked leaders trigger fresh technical buy signals and break out of sound bases. The next important level to watch for the major averages are their respective 200-day moving average (DMA) lines. It is important to note that approximately 75% of FTDs lead to new sustained rallies, while 25% fail. In addition, every major rally in market history has begun with a FTD, but not every FTD leads to a new rally. Trade accordingly.
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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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