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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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Market In A Correction After U.S. Outlook Falls
Monday, April 18, 2011
Stock Market Commentary:
Stocks got smacked after Standard & Poor’s rating service cut the U.S. long term credit outlook to negative. The current rally which began on the Thursday, March 24, 2011 follow-through day (FTD) came under pressure at the beginning of April and officially ended on Monday, April 18, 2011, when all the major averages plunged below their respective 50 DMA lines in heavy trade. Now that the market is back in a correction, defense is paramount until a new FTD emerges.
S&P Rating Agency Cuts U.S. Credit Outlook To Negative
Before Monday’s open, the S&P rating service cut the U.S. long term credit outlook to negative which tends to serve as a warning shot before an official downgrade. S&P put a “negative” outlook on the U.S. AAA credit rating, and said surging budget deficits and massive government debt were the primary culprits. This sent a slew of so-called “risk” assets lower as traders are fearful that the robust 8-month rally that began in late August may be in jeopardy. In other news, Citigroup (C) traded lower after releasing lackluster Q1 results.
Market Action- Market In A Correction
The current rally which began with the Thursday, March 24, 2011 FTD officially ended on Monday, April 18, 2011 after all the popular indexes sliced below their respective 50 DMA lines. The market is now in a correction which reiterates the importance of playing strong defense until a new rally is confirmed. If you are looking for specific help navigating this market, please contact us for more information.
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© 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