Wednesday, November 17, 2010
Stock Market Commentary:
Stocks and commodities ended mixed one day after the 12-week rally came to an end. The rally which began on the September 1, 2010 follow-through day ended on Tuesday as stocks and commodities plunged in heavy trade. The major averages have suffered an ominous series of distribution days in a short period of time which suggests sellers are gaining traction.
Consumer Price Index Tame, Housing Starts Fall, EU Debt Woes Ease:
The euro squeezed out a small gain after CPI fell short of analyst estimates and housing starts plunged. The weaker dollar helped the major averages end relatively flat on the day. Overseas, the European Union has agreed in principle to help bailout Ireland. Looking forward, the two important questions are: 1.) how many more countries will need to be bailed out? 2.) How many more countries can the EU afford to bailout? Thursday will be an interesting day as GM will begin trading (it is expected to be the largest IPO in US history) and a slew of economic data is slated to be released.
Market Action- 12 Week Rally Ends – In A Correction:
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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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 Consolidate Recent Decline
Wednesday, November 17, 2010
Stock Market Commentary:
Stocks and commodities ended mixed one day after the 12-week rally came to an end. The rally which began on the September 1, 2010 follow-through day ended on Tuesday as stocks and commodities plunged in heavy trade. The major averages have suffered an ominous series of distribution days in a short period of time which suggests sellers are gaining traction.
Consumer Price Index Tame, Housing Starts Fall, EU Debt Woes Ease:
The euro squeezed out a small gain after CPI fell short of analyst estimates and housing starts plunged. The weaker dollar helped the major averages end relatively flat on the day. Overseas, the European Union has agreed in principle to help bailout Ireland. Looking forward, the two important questions are: 1.) how many more countries will need to be bailed out? 2.) How many more countries can the EU afford to bailout? Thursday will be an interesting day as GM will begin trading (it is expected to be the largest IPO in US history) and a slew of economic data is slated to be released.
Market Action- 12 Week Rally Ends – In A Correction:
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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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:
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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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