The major averages enjoyed their largest single day gain since February, helped by a slew of stronger-than-expected earnings and the latest multi billion dollar takover. Volume totals on Thursday were reported mixed; higher on the Nasdaq and lower on the NYSE. Advancers led decliners by about a 3-to-1 ratio on both major exchanges. Meanwhile, new 52-week highs easily trumped new 52-week lows. There were 35 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 15 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally.
Earnings & M&A News Help Stocks Rally:
Stocks enjoyed healthy gains on Thursday as European woes eased and strong earnings from Motorola Inc. (MOT +3.47%) and Starwood Hotels & Resorts Worldwide Inc. (HOT +5.67%) showed the economy is improving. Motorola, the largest US mobile-phone manufacturer, gapped up after reporting an unexpected profit, and Starwood vaulted to a fresh 52-week high after releasing their latest results. Elsewhere, shares of Palm Inc. (PALM +26.13%) surged over +26% after Hewlett-Packard Co. (HPQ -0.75%) acquired the company for $1.2 billion.
Market Commentary- Confirmed Rally
It is important to note that the major averages have been steadily rallying since early February and a pullback of some sort should be expected. Tuesday marked the latest distribution day since the rally was confirmed on the March 1, 2010 follow-through day (FTD). According to the paper, there are 6 distribution days for the NYSE, 5 for the S&P 500, 4 for the Dow, and 3 for the Nasdaq in recent weeks. This puts some pressure on this 9-week rally, but has yet to cause any technical damage. The fact that the market continues to shrug off any and all negative data bodes very well for this 13-month bull market.
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.
Earnings & M&A News Lifts Stocks
Thursday, April 29, 2010
Market Commentary:
The major averages enjoyed their largest single day gain since February, helped by a slew of stronger-than-expected earnings and the latest multi billion dollar takover. Volume totals on Thursday were reported mixed; higher on the Nasdaq and lower on the NYSE. Advancers led decliners by about a 3-to-1 ratio on both major exchanges. Meanwhile, new 52-week highs easily trumped new 52-week lows. There were 35 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 15 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally.
Earnings & M&A News Help Stocks Rally:
Stocks enjoyed healthy gains on Thursday as European woes eased and strong earnings from Motorola Inc. (MOT +3.47%) and Starwood Hotels & Resorts Worldwide Inc. (HOT +5.67%) showed the economy is improving. Motorola, the largest US mobile-phone manufacturer, gapped up after reporting an unexpected profit, and Starwood vaulted to a fresh 52-week high after releasing their latest results. Elsewhere, shares of Palm Inc. (PALM +26.13%) surged over +26% after Hewlett-Packard Co. (HPQ -0.75%) acquired the company for $1.2 billion.
Market Commentary- Confirmed Rally
It is important to note that the major averages have been steadily rallying since early February and a pullback of some sort should be expected. Tuesday marked the latest distribution day since the rally was confirmed on the March 1, 2010 follow-through day (FTD). According to the paper, there are 6 distribution days for the NYSE, 5 for the S&P 500, 4 for the Dow, and 3 for the Nasdaq in recent weeks. This puts some pressure on this 9-week rally, but has yet to cause any technical damage. The fact that the market continues to shrug off any and all negative data bodes very well for this 13-month bull market.
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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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