The major averages slid after weekly jobless claims unexpectedly jumped and retail sales fell short of estimates. Volume totals were reported mixed; higher on the NYSE and lower on the Nasdaq exchanges versus the prior session. Decliners led advancers by almost an 11-to-8 ratio and the NYSE and by a 17-to-9 ratio on the Nasdaq exchange. New 52-week highs easily outnumbered new 52-week lows on the NYSE and the Nasdaq exchange. There were 24 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower from the 35 issues that appeared on the prior session.
Jobless Claims Rise & Retail Sales Are Light:
Before Thursday’s open, the Labor Department said initial jobless claims rose by +19,000 to 479,000 which is the highest reading since April and topped analysts estimates. Before Friday’s open, the Labor Department is slated to release July’s nonfarm payrolls report which is expected to decline by -65,000. Analysts believe that Friday’s report will show the unemployment rate rose to +9.6%. Elsewhere, a slew of retailers reported sales which fell short of the Street’s estimates for July. This put pressure on the market and a slew of retailers as we enter the back-to-school shopping season.
Market Action- Confirmed Rally:
At this point, the Dow Jones Industrial Average and the NYSE Composite Index have traded above resistance at their long term 200-day moving average (DMA) lines and recent chart highs. The tech-heavy Nasdaq Composite, benchmark S&P 500, and small-cap Russell 2000 index remain slightly below their recent chart highs. However, the fact that all of the major averages are trading above their respective 2-month downward trendlines bodes well for this five week rally. In order for a new leg higher to begin, all the major averages must close and remain above their respective resistance levels. Remember that the window remains open for for high-ranked stocks to be accumulated when they trigger fresh technical buy signals. Trade accordingly.
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 End Lower on Weaker Economic Data
Thursday, August 5, 2010
Stock Market Commentary:
The major averages slid after weekly jobless claims unexpectedly jumped and retail sales fell short of estimates. Volume totals were reported mixed; higher on the NYSE and lower on the Nasdaq exchanges versus the prior session. Decliners led advancers by almost an 11-to-8 ratio and the NYSE and by a 17-to-9 ratio on the Nasdaq exchange. New 52-week highs easily outnumbered new 52-week lows on the NYSE and the Nasdaq exchange. There were 24 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower from the 35 issues that appeared on the prior session.
Jobless Claims Rise & Retail Sales Are Light:
Before Thursday’s open, the Labor Department said initial jobless claims rose by +19,000 to 479,000 which is the highest reading since April and topped analysts estimates. Before Friday’s open, the Labor Department is slated to release July’s nonfarm payrolls report which is expected to decline by -65,000. Analysts believe that Friday’s report will show the unemployment rate rose to +9.6%. Elsewhere, a slew of retailers reported sales which fell short of the Street’s estimates for July. This put pressure on the market and a slew of retailers as we enter the back-to-school shopping season.
Market Action- Confirmed Rally:
At this point, the Dow Jones Industrial Average and the NYSE Composite Index have traded above resistance at their long term 200-day moving average (DMA) lines and recent chart highs. The tech-heavy Nasdaq Composite, benchmark S&P 500, and small-cap Russell 2000 index remain slightly below their recent chart highs. However, the fact that all of the major averages are trading above their respective 2-month downward trendlines bodes well for this five week rally. In order for a new leg higher to begin, all the major averages must close and remain above their respective resistance levels. Remember that the window remains open for for high-ranked stocks to be accumulated when they trigger fresh technical buy signals. Trade accordingly.
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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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