Wednesday, November 24, 2010
Stock Market Commentary:
Stocks and a handful of commodities rallied on Wednesday thanks to a series of stronger than expected economic data coupled with relative calm overseas. The rally which began on the September 1, 2010 follow-through day ended on Tuesday. November 16, 2010 as stocks and commodities plunged in heavy trade. Wednesday marked day 1 of a new rally attempt, which means that as long as Wednesday’s lows are not breached, the earliest a possible FTD could emerge will be Monday, November 22, 2010.
Geopolitical Woes Ease But Euro Is “In Danger”:
News was relatively quiet overseas which set the stage for a strong open in the US. This week the euro has been smacked hard as several EU political heavy weights expressed concern regarding the fate of the EU. German Chancellor Angela Merkel said on Tuesday that the Euro was in danger. On Wednesday, Ivan Miklos, Slovakia’s finance minister said the euro zone may break up or function with serious problems due to the ongoing debt woes.
U.S. Economic News Is Mixed:
The economic news was mixed but it was encouraging to see stocks rally which bodes well for this 6 day rally attempt. Before Wednesday’s open, the Labor Department said jobless claims fell which helped allay concerns that the ailing jobs market was not recovering. Elsewhere, durable goods and new home sales both fell short of analyst estimates which bodes poorly for the ailing housing market.
Market Action- 12 Week Rally Ends – Week 2- In A Correction:
It was encouraging to see the bulls show up and defend the Dow Jones Industrial Average’s 50 DMA line. The 12-week rally ended on Tuesday, November 16, 2010 after the major averages plunged in heavy volume back down towards their respective 50 DMA lines. In recent weeks, we have repeatedly written about how the major averages were experiencing wide-and-loose action after a big move and made it very clear that that was not a healthy sign. At this point, we are looking for a new rally to be confirmed with a new follow-through day before taking any new positions. Caution and patience are key at this point. Trade accordingly.
Sarhan Wealth Management provides both global macro and equity only consulting services to high net worth and institutional clients around the world. For years, our clientele has participated in the firm’s objective market-based outlook, which has one primary goal: to provide robust trading ideas across all asset classes. Since 2004 we have outperformed the S&P 500 on a regular basis. These results are based solely on our weekly research. All our historical data is available upon request.
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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.
Investors Gobble Up Shares Ahead of Thanksgiving
Wednesday, November 24, 2010
Stock Market Commentary:
Stocks and a handful of commodities rallied on Wednesday thanks to a series of stronger than expected economic data coupled with relative calm overseas. The rally which began on the September 1, 2010 follow-through day ended on Tuesday. November 16, 2010 as stocks and commodities plunged in heavy trade. Wednesday marked day 1 of a new rally attempt, which means that as long as Wednesday’s lows are not breached, the earliest a possible FTD could emerge will be Monday, November 22, 2010.
Geopolitical Woes Ease But Euro Is “In Danger”:
News was relatively quiet overseas which set the stage for a strong open in the US. This week the euro has been smacked hard as several EU political heavy weights expressed concern regarding the fate of the EU. German Chancellor Angela Merkel said on Tuesday that the Euro was in danger. On Wednesday, Ivan Miklos, Slovakia’s finance minister said the euro zone may break up or function with serious problems due to the ongoing debt woes.
U.S. Economic News Is Mixed:
The economic news was mixed but it was encouraging to see stocks rally which bodes well for this 6 day rally attempt. Before Wednesday’s open, the Labor Department said jobless claims fell which helped allay concerns that the ailing jobs market was not recovering. Elsewhere, durable goods and new home sales both fell short of analyst estimates which bodes poorly for the ailing housing market.
Market Action- 12 Week Rally Ends – Week 2- In A Correction:
It was encouraging to see the bulls show up and defend the Dow Jones Industrial Average’s 50 DMA line. The 12-week rally ended on Tuesday, November 16, 2010 after the major averages plunged in heavy volume back down towards their respective 50 DMA lines. In recent weeks, we have repeatedly written about how the major averages were experiencing wide-and-loose action after a big move and made it very clear that that was not a healthy sign. At this point, we are looking for a new rally to be confirmed with a new follow-through day before taking any new positions. Caution and patience are key at this point. Trade accordingly.
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Our Private Wealth Management Services Can Help You!
Sarhan Wealth Management provides both global macro and equity only consulting services to high net worth and institutional clients around the world. For years, our clientele has participated in the firm’s objective market-based outlook, which has one primary goal: to provide robust trading ideas across all asset classes. Since 2004 we have outperformed the S&P 500 on a regular basis. These results are based solely on our weekly research. All our historical data is available upon request.
How we can improve your performance:
Contact Us To Learn How We Can Help You!
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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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