Wednesday, March 14, 2012 Stock Market Commentary:
Stocks opened higher on Wednesday, led by the explosive post Stress-test results from the country’s largest banks. From our point of view, the major averages confirmed their latest rally attempt on Tuesday 1.3.12 which was Day 9 of their current rally attempt. Since then, stocks have been enjoying a very strong uptrend. The benchmark S&P 500 paused near its 2011 high (~1370) before moving higher. It would be perfectly normal and healthy to see a 5-9% pullback at any point to give the bulls a chance to consolidate the recent gain. That would bring the S&P 500 down to 1310-1250. Until then, the bulls remain in control of this market as long as the benchmark S&P 500 stays above its 50 DMA line.
Financials Lead, Economic Data Helps:
Before Wednesday’s open, the government said import prices fell short of the Street’s estimate, rising +0.4% in February thanks to a large drop in food prices. Meanwhile, the U.S. current account deficit, jumped to a three-year high of $124.1 billion. A separate report showed that the Mortgage Bankers Association said demand for home loans slid by -2.4% but actually rose 4.4% excluding a drop in refinancing requests last week.
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 Digest Tuesday’s Strong Move
Wednesday, March 14, 2012
Stock Market Commentary:
Stocks opened higher on Wednesday, led by the explosive post Stress-test results from the country’s largest banks. From our point of view, the major averages confirmed their latest rally attempt on Tuesday 1.3.12 which was Day 9 of their current rally attempt. Since then, stocks have been enjoying a very strong uptrend. The benchmark S&P 500 paused near its 2011 high (~1370) before moving higher. It would be perfectly normal and healthy to see a 5-9% pullback at any point to give the bulls a chance to consolidate the recent gain. That would bring the S&P 500 down to 1310-1250. Until then, the bulls remain in control of this market as long as the benchmark S&P 500 stays above its 50 DMA line.
Financials Lead, Economic Data Helps:
Before Wednesday’s open, the government said import prices fell short of the Street’s estimate, rising +0.4% in February thanks to a large drop in food prices. Meanwhile, the U.S. current account deficit, jumped to a three-year high of $124.1 billion. A separate report showed that the Mortgage Bankers Association said demand for home loans slid by -2.4% but actually rose 4.4% excluding a drop in refinancing requests last week.
Market Outlook- Confirmed Rally
After a very shallow pullback the majority of risk assets (Stocks, FX, and commodities) have began to rally. So far this action is considered healthy for the risk on trade. However, if the sellers show up and support is breached then the bears will have regained control of this market. As always, keep your losses small and never argue with the tape. If you are looking for specific help navigating this market, feel free to contact us for more information. That’s what we are here for!
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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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