The major averages ended mixed to mostly lower after weakness emerged from the closely followed financial and housing sectors. Volume on Monday was reported lower compared to Friday’s totals on both major exchanges. Decliners led advancers by a small margin on both exchanges. Meanwhile, new 52-week highs easily trumped new 52-week lows. In addition, it was encouraging to see new lows fall to the single digits on both exchanges. There were 91 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 80 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally.
Financials & Housing Stocks Lag:
The major averages ended near their intraday lows after several high profile financial and housing stocks suffered distribution. BlackRock, Inc. (BLK -8.56%) gapped down and hit a fresh multi month low on monstrous volume after reporting lackluster quarterly results. Goldman Sachs Group Inc. (GS -3.41%) got smacked on above average volume one day before several key personnel are slated to testify on Capital Hill regarding the ongoing SEC investigation. Meanwhile, housing stocks, another leading group in this 9-week rally, negatively reversed (opened higher but closed lower) on above average volume which suggests a pullback may be in their future.
Market Action- Confirmed Rally:
It is important to note that the major averages have been steadily rallying since early February and a pullback of some sort should be expected. However, until that pullback arrives, the market deserves the bullish benefit of the doubt. Trade accordingly.
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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.
Stocks End Near Lows; Financials & Housing Stocks Lag
Monday, April 26, 2010
Market Commentary:
The major averages ended mixed to mostly lower after weakness emerged from the closely followed financial and housing sectors. Volume on Monday was reported lower compared to Friday’s totals on both major exchanges. Decliners led advancers by a small margin on both exchanges. Meanwhile, new 52-week highs easily trumped new 52-week lows. In addition, it was encouraging to see new lows fall to the single digits on both exchanges. There were 91 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 80 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally.
Financials & Housing Stocks Lag:
The major averages ended near their intraday lows after several high profile financial and housing stocks suffered distribution. BlackRock, Inc. (BLK -8.56%) gapped down and hit a fresh multi month low on monstrous volume after reporting lackluster quarterly results. Goldman Sachs Group Inc. (GS -3.41%) got smacked on above average volume one day before several key personnel are slated to testify on Capital Hill regarding the ongoing SEC investigation. Meanwhile, housing stocks, another leading group in this 9-week rally, negatively reversed (opened higher but closed lower) on above average volume which suggests a pullback may be in their future.
Market Action- Confirmed Rally:
It is important to note that the major averages have been steadily rallying since early February and a pullback of some sort should be expected. However, until that pullback arrives, the market deserves the bullish benefit of the doubt. Trade accordingly.
Professional Money Management Services- Free Portfolio Review:
Our skilled team of portfolio managers knows how to follow the rules of this fact-based investment system. If your portfolio is greater than $100,000 and you would like a free portfolio review, Click Here to get connected with one of our portfolio managers. ** Serious inquires only, please.
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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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