The major averages erased earlier losses and ended near their intraday highs as investors digested the latest round of economic and earnings data. Volume, an important indicator of institutional sponsorship, was higher than Monday’s level on both exchanges. There were 18 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 from the 7 issues that appeared on the prior session. Advancers led decliners by over a 3-to-1 ratio on the NYSE and by over a 2-to-1 ratio on the Nasdaq exchange. New 52-week highs solidly outnumbered new 52-week lows on the NYSE but trailed on the Nasdaq exchange. For the rally to have ongoing success it will be critical for a healthy crop of leaders to continue showing up hitting new 52-week highs.
Investors Digest a Slew Of Earnings Season & Economic Data:
International Business Machines Corp. (IBM -2.50%), Texas Instruments Inc. (TXN -3.05%), Johnson & Johnson (JNJ -1.66%), and Goldman Sachs Inc (GS +2.22%) were among the high profile companies that reported earnings since Monday’s close. Initially, stocks opened lower due to a general disappointment with their numbers but the bulls showed up in the second half of the session which was an encouraging sign. A slew of housing stocks rallied after building permits rose last month. However, housing starts, which measure new production, fell in June to their lowest level since October after the government tax incentive expired. After Tuesday’s close, Yahoo Inc. (YHOO +0.66%) and Apple Inc. (AAPL +2.57%) released their latest quarterly results. As always, it will be very interesting to see how the market reacts to their numbers.
Market Action- Rally Under Pressure:
Since the current rally began on July 1, the major averages have rallied on suspiciously light volume, leadership has been very light and resistance has held firm- all unhealthy signs. This ominous action suggests another pullback may be in the cards. That said, patience and caution are of the utmost importance until the major averages close above resistance. Trade accordingly.
What Have You Done To Capitalize On This Rally?
Inquire Today About Our Professional Money Management Services:
If your portfolio is greater than $250,000 and you would like a free portfolio review, Click Here to learn more about our money management services. * 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.
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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.
Stocks Higher On A Slew of Earnings Data
Tuesday, July 20, 2010
Market Commentary:
The major averages erased earlier losses and ended near their intraday highs as investors digested the latest round of economic and earnings data. Volume, an important indicator of institutional sponsorship, was higher than Monday’s level on both exchanges. There were 18 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 from the 7 issues that appeared on the prior session. Advancers led decliners by over a 3-to-1 ratio on the NYSE and by over a 2-to-1 ratio on the Nasdaq exchange. New 52-week highs solidly outnumbered new 52-week lows on the NYSE but trailed on the Nasdaq exchange. For the rally to have ongoing success it will be critical for a healthy crop of leaders to continue showing up hitting new 52-week highs.
Investors Digest a Slew Of Earnings Season & Economic Data:
International Business Machines Corp. (IBM -2.50%), Texas Instruments Inc. (TXN -3.05%), Johnson & Johnson (JNJ -1.66%), and Goldman Sachs Inc (GS +2.22%) were among the high profile companies that reported earnings since Monday’s close. Initially, stocks opened lower due to a general disappointment with their numbers but the bulls showed up in the second half of the session which was an encouraging sign. A slew of housing stocks rallied after building permits rose last month. However, housing starts, which measure new production, fell in June to their lowest level since October after the government tax incentive expired. After Tuesday’s close, Yahoo Inc. (YHOO +0.66%) and Apple Inc. (AAPL +2.57%) released their latest quarterly results. As always, it will be very interesting to see how the market reacts to their numbers.
Market Action- Rally Under Pressure:
Since the current rally began on July 1, the major averages have rallied on suspiciously light volume, leadership has been very light and resistance has held firm- all unhealthy signs. This ominous action suggests another pullback may be in the cards. That said, patience and caution are of the utmost importance until the major averages close above resistance. Trade accordingly.
What Have You Done To Capitalize On This Rally?
Inquire Today About Our Professional Money Management Services:
If your portfolio is greater than $250,000 and you would like a free portfolio review, Click Here to learn more about our money management services. * Serious inquires only, please.
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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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