© ChartYourTrade | Contact us: website@chartyourtrade.com
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.
Charts and Data are courtesy of MarketSmith Incorporated. Join MarketSmith here.
Terms of Service
Stocks Rally On Hopes of More Stimulus!
Thursday, April 12, 2012
Stock Market Commentary:
Stocks and other risk assets continued bouncing back on Thursday helped by fresh hopes of QE3 and a flurry of U.S. economic data. As earnings continue 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. The fact that the Dow Jones Industrial Average, Small Cap Russell 2000, are below their respective 50 DMA lines suggests that this important moving average might become an area of resistance. It is encouraging to see the S&P 500 regain its 50 DMA line on Thursday.
Flurry of Economic Data Lifts Stocks:
Before Thursday’s open, weekly jobless claims rose by +13,000 to a seasonally adjusted 380,000, which missed estimates. It was the highest reading since January and bodes poorly for the jobs market, especially after March’s disappointing jobs report. Other economic news was mixed to more positive. The Labor department said its producer price index (PPI) was unchanged in March thanks in part to a decline in energy prices, which offset a rise in food prices. The unchanged reading missed the Street’s expectation for a gain of +0.3% and helped allay inflation woes. Finally, the Commerce Department said the trade deficit narrowed unexpectedly by 12.4% to $46.0 billion in February and exports gained to a record $181.2 billion. There are two important data points that are slated to be released after Thursday’s close, Google’s Q1 earnings report and China’s Q1 GDP. Friday will be another busy day for investors, earnings are slated to be released from JPM, and WFC, the consumer price index (CPI) will be released and the latest reading from consumer sentiment.
Market Outlook- In A Correction
From our point of view, Thursday marked Day 2 of a current rally attempt which means the earliest a proper FTD could emerge will be on Monday providing Wednesday’s lows are not breached. Remember, it is quite normal to see markets pullback to digest their latest move but from a risk/reward standpoint, being heavily long when the major averages are below their respective 50 DMA lines does not offer an optimal risk/reward level. However, once these major averages get back their respective 50 DMA lines, then one can easily return to the long side. 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!
Here are more articles you may like
What are the Best Stocks to Buy?
What are the Best Stocks to Buy? Selecting stocks that outperform the market over both
Types of Trading Strategies for the Stock Market
Types of Trading Strategies for the Stock Market As a day trader, you buy and
What is Growth Investing?
What is Growth Investing? Investors use a variety of investment strategies to meet their short-term
Adam Sarhan
Claim Your Free Guide Today
Give us your email and we will give you the tools to change your life.
FREE 7 DAY EMAIL COURSE
Learn about Early Entry Points & much more...
© ChartYourTrade | Contact us: website@chartyourtrade.com
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.
Charts and Data are courtesy of MarketSmith Incorporated. Join MarketSmith here.
Terms of Service