Please Note: After Nearly 10 Years of writing our daily stock market commentary, due to time constraints, this will become a weekly note- Starting May 1, 2012. We would like to thank you for your continued support and patronage!
Nasdaq Back Above 50 DMA Line
Wednesday, April 25, 2012 Stock Market Commentary:
Stocks and a slew of other “risk assets” bounced on Wednesday after Apple smashed estimates. As earnings and economic data continues to be released in droves, it is paramount that we not only pay attention to the actual numbers but how the stocks (and major averages) react to the numbers. This allows us to see how the market participants are “voting” and helps us filter out the noise and focus on what matters most: price action. Since the beginning of April, the action has been less than stellar. We find it somewhat encouraging to see all the major averages jump back above their respective 50 DMA lines in the wake of Apple’s blow-out quarter.
Apple’s Earnings Top Estimates, Durable Goods Disappoint, and Fed Reiterates Recent Stance:
Stocks and a slew of risk assets opened higher on Wednesday as investors looked passed a disappointing durable goods number and focused on a much stronger-than-expected earnings report from Apple Inc. (AAPL). The Commerce Department said total durable goods orders fell by -4.2% during March which missed the Street’s estimate for a decline of -1.7%. Excluding transportation items, durable goods orders fell by -1.1%, which still missed the Street’s estimates for a gain of +0.5%. The Fed concluded its two-day meeting, held rates steady, and largely reiterated their recent data-dependent stance regarding future policy. For months, the U.S. Fed has taken a “wait-and-see” approach for handling policy and whether or not to initiate another round of QE (i.e. stimulus).
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 Rally On Apple’s Earnings
Please Note: After Nearly 10 Years of writing our daily stock market commentary, due to time constraints, this will become a weekly note-
Starting May 1, 2012.
We would like to thank you for your continued support and patronage!
Wednesday, April 25, 2012
Stock Market Commentary:
Stocks and a slew of other “risk assets” bounced on Wednesday after Apple smashed estimates. As earnings and economic data continues to be released in droves, it is paramount that we not only pay attention to the actual numbers but how the stocks (and major averages) react to the numbers. This allows us to see how the market participants are “voting” and helps us filter out the noise and focus on what matters most: price action. Since the beginning of April, the action has been less than stellar. We find it somewhat encouraging to see all the major averages jump back above their respective 50 DMA lines in the wake of Apple’s blow-out quarter.
Apple’s Earnings Top Estimates, Durable Goods Disappoint, and Fed Reiterates Recent Stance:
Stocks and a slew of risk assets opened higher on Wednesday as investors looked passed a disappointing durable goods number and focused on a much stronger-than-expected earnings report from Apple Inc. (AAPL). The Commerce Department said total durable goods orders fell by -4.2% during March which missed the Street’s estimate for a decline of -1.7%. Excluding transportation items, durable goods orders fell by -1.1%, which still missed the Street’s estimates for a gain of +0.5%. The Fed concluded its two-day meeting, held rates steady, and largely reiterated their recent data-dependent stance regarding future policy. For months, the U.S. Fed has taken a “wait-and-see” approach for handling policy and whether or not to initiate another round of QE (i.e. stimulus).
Market Outlook- In A Correction
From our point of view, the market is still digesting its strong move in Q1 of 2011. The major averages are currently struggling with their respective 50 DMA lines as investors digest a slew of earnings and economic data. 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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