Thursday, August 12, 2010
Stock Market Commentary:
Stocks ended lower for a third straight day after jobless claims rose and the latest round of Q2 earnings fell short of analysts’ estimates. Volume totals were reported lower on the NYSE and on the Nasdaq exchanges versus the prior session which was a somewhat welcoming sign. Decliners led advancers by over an 11-to-8 ratio on the NYSE and by a 16-to-11 ratio on the Nasdaq exchange. New 52-week highs easily outnumbered new 52-week lows on the NYSE but trailed new lows by a large margin on the Nasdaq exchange. There were only 3 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, one more than the 2 issues that appeared on the prior session.
Jobless Claims & Sour Tech Results Weigh on Stocks:
US stocks fell but ended near their intraday highs after the Labor Department said unemployment claims unexpectedly rose to the highest level in five months and several well-known tech stocks got whacked after Cisco Systems (CSCO -9.99%) released their Q2 results. The uptick in jobless claims was the latest in a series of tepid economic reports released this week which sparked concerns that the global economic recovery will slow in the latter half of the year. Cisco, the world’s largest manufacturer of networking equipment, plunged nearly -10% after sales fell short of analysts’ estimates. The sour outlook weighed on the Nasdaq 100 where many high profile tech stocks reside.
Market Action- Uptrend Under Pressure:
The technical action in the major averages has deteriorated significantly. Not all of the major averages managed to rally above their recent chart highs, and all have now sliced back below their respective 200-day moving average (DMA) lines. It is also worrisome to see the number of distribution days pile up in recent weeks which puts pressure on the current five-week rally. Whenever a market rally becomes under pressure (as it is now), it is usually wise to err on the side of caution and adopt a strong defensive stance until the bulls regain control. 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.
Day 3: The Selling Continues
Thursday, August 12, 2010
Stock Market Commentary:
Stocks ended lower for a third straight day after jobless claims rose and the latest round of Q2 earnings fell short of analysts’ estimates. Volume totals were reported lower on the NYSE and on the Nasdaq exchanges versus the prior session which was a somewhat welcoming sign. Decliners led advancers by over an 11-to-8 ratio on the NYSE and by a 16-to-11 ratio on the Nasdaq exchange. New 52-week highs easily outnumbered new 52-week lows on the NYSE but trailed new lows by a large margin on the Nasdaq exchange. There were only 3 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, one more than the 2 issues that appeared on the prior session.
Jobless Claims & Sour Tech Results Weigh on Stocks:
US stocks fell but ended near their intraday highs after the Labor Department said unemployment claims unexpectedly rose to the highest level in five months and several well-known tech stocks got whacked after Cisco Systems (CSCO -9.99%) released their Q2 results. The uptick in jobless claims was the latest in a series of tepid economic reports released this week which sparked concerns that the global economic recovery will slow in the latter half of the year. Cisco, the world’s largest manufacturer of networking equipment, plunged nearly -10% after sales fell short of analysts’ estimates. The sour outlook weighed on the Nasdaq 100 where many high profile tech stocks reside.
Market Action- Uptrend Under Pressure:
The technical action in the major averages has deteriorated significantly. Not all of the major averages managed to rally above their recent chart highs, and all have now sliced back below their respective 200-day moving average (DMA) lines. It is also worrisome to see the number of distribution days pile up in recent weeks which puts pressure on the current five-week rally. Whenever a market rally becomes under pressure (as it is now), it is usually wise to err on the side of caution and adopt a strong defensive stance until the bulls regain control. 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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