Selling Continues As Stocks Close At A Fresh 2010 Low

ByAdam Sarhan

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.

Stocks Tank On Tepid Jobs Report; Euro Plunges To A New Multi-Year Low!

ByAdam Sarhan

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.

Market’s Edge Higher & Wait For Friday’s Jobs Report

ByAdam Sarhan

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.

Where’s the Volume? Stocks Rally on Mixed Volume

ByAdam Sarhan

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.