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 reported mixed compared to Friday’s levels; higher on the Nasdaq and lower on the NYSE. Advancers led decliners by a nearly a 4-to-1 ratio on the NYSE and by nearly a 3-to-1ratio on the Nasdaq exchange. New 52-week highs trumped new lows on both exchanges which was another welcomed sign.
Stocks Rally On Latest Economic Data:Stocks rallied after the the latest round of economic data was released. US personal spending grew +0.5% in January for a fourth consecutive increase, while personal income grew by +0.4%. A separate report, released by the ISM, showed that US manufacturing was above the boom/bust level of 50. The ISM manufacturing index eased to 56.5 in February which was higher than January’s reading but slightly below consensus. In other news, Chilean stocks plummeted after the earthquake killed close to 1,000 people, severed the country’s main highway, and damaged 1.5 million homes.
Market Action- In A Correction:
Looking at the market, Monday marked Day 16 of a new rally attempt which means that as long as the February 5th lows are not breached the window remains open for a new follow-through day (FTD) to emerge. A new follow-through day will confirm the current rally attempt and will be produced when one of the major averages rallies at least +1.7% on higher volume than the prior session as a new batch of leaders break out of fresh bases. However, if the February 5, 2010 lows are breached then the day count will be reset and a steeper correction may unfold. So far, the market is getting stronger as investors continue to digest the latest round of stronger than expected economic and earnings data. Remember that the market remains in a correction until a new new follow-through day emerges. Until then, patience is paramount.
*Professional Money Management Services – Inquire today! Our skilled team of portfolio managers follow the rules of this fact-based investment system without exception. We do not follow opinion trade based on what we think will happen. Instead, we trade on what actually “is” happening! We remain fluid in our approach and only buy the best stocks when they are triggering proper technical buy signals. If you are not completely satisfied with the way your portfolio is being managed, Click here to email one of our portfolio managers. *Accounts over $250,000 please. ** Serious inquires only, please.
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.
Claim Your Free Guide Today
Give us your email and we will give you the tools to change your life.
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.
Day 16: Still Waiting For A Follow-Through Day
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 reported mixed compared to Friday’s levels; higher on the Nasdaq and lower on the NYSE. Advancers led decliners by a nearly a 4-to-1 ratio on the NYSE and by nearly a 3-to-1 ratio on the Nasdaq exchange. New 52-week highs trumped new lows on both exchanges which was another welcomed sign.
Stocks Rally On Latest Economic Data:Stocks rallied after the the latest round of economic data was released. US personal spending grew +0.5% in January for a fourth consecutive increase, while personal income grew by +0.4%. A separate report, released by the ISM, showed that US manufacturing was above the boom/bust level of 50. The ISM manufacturing index eased to 56.5 in February which was higher than January’s reading but slightly below consensus. In other news, Chilean stocks plummeted after the earthquake killed close to 1,000 people, severed the country’s main highway, and damaged 1.5 million homes.
Market Action- In A Correction:
Looking at the market, Monday marked Day 16 of a new rally attempt which means that as long as the February 5th lows are not breached the window remains open for a new follow-through day (FTD) to emerge. A new follow-through day will confirm the current rally attempt and will be produced when one of the major averages rallies at least +1.7% on higher volume than the prior session as a new batch of leaders break out of fresh bases. However, if the February 5, 2010 lows are breached then the day count will be reset and a steeper correction may unfold. So far, the market is getting stronger as investors continue to digest the latest round of stronger than expected economic and earnings data. Remember that the market remains in a correction until a new new follow-through day emerges. Until then, patience is paramount.
*Professional Money Management Services – Inquire today!
Our skilled team of portfolio managers follow the rules of this fact-based investment system without exception. We do not follow opinion trade based on what we think will happen. Instead, we trade on what actually “is” happening! We remain fluid in our approach and only buy the best stocks when they are triggering proper technical buy signals. If you are not completely satisfied with the way your portfolio is being managed, Click here to email one of our portfolio managers. *Accounts over $250,000 please. ** Serious inquires only, please.
Here are more articles you may like
Yatırım Bonusu Veren Bahis Siteleri – En İyi Bonuslar İçin Bahis Siteler
İçerik Yatırım bonusu veren bahis siteleri Yatırım Bonusları Yeni Üyelik Bonusları Para Yatırma Bonusları Bahis
Bettilt Spor Bahisleri – En İyi Online Spor Bahislerini Bulun Bettilt
İçerik Online Spor Bahislerini Bulun En Çok Tercih Edilen Spor Bahisleri Yeni Nesil Bahis Deneyimi
Online Casino Siteleri – Türkiye’deki En İyi Online Casino Siteleri
İçerik Online Kumarhane Platformları Hakkında Genel Bilgi Casino Sitelerinin Popülerliği Online Casino Oyunlarının İçeriği En
Adam Sarhan
Claim Your Free Guide Today
Give us your email and we will give you the tools to change your life.
FREE 7 DAY EMAIL COURSE
Learn about Early Entry Points & much more...
© ChartYourTrade | Contact us: website@chartyourtrade.com
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.
Charts and Data are courtesy of MarketSmith Incorporated. Join MarketSmith here.
Terms of Service