Stocks slid as investors digested the last two weeks of solid gains and patiently await Friday’s much anticipated non-farm payrolls report. The market is back in a confirmed uptrend and remains healthy as long as all the major averages continue trading above their respective 50 DMA lines and recent chart highs. The recent healthy action was in response to a very accommodative Fed, a series of stronger than expected Q1 results, and a host of solid economic data. Now that the market is back in a confirmed rally, odds favor higher, not lower, prices lie ahead.
Factory Orders Rise; Earnings Mixed To Strong:
On Tuesday, stocks slid as the latest rally cooled and investors digested the latest round of earnings and economic data. U.S. factory orders topped estimates in March as demand increased for machinery and computers which bodes well for the economic recovery and further business spending. The Commerce Department said factory orders rose +3%, a fifth consecutive increase, after a +0.7% gain in February. Meanwhile, the latest round of earnings data was mixed to slightly stronger which also bodes well for the ongoing recovery.
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.
Claim Your Free Guide Today
Give us your email and we will give you the tools to change your life.
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 Fall As Rally Cools
Tuesday, May 03, 2011
Stock Market Commentary:
Stocks slid as investors digested the last two weeks of solid gains and patiently await Friday’s much anticipated non-farm payrolls report. The market is back in a confirmed uptrend and remains healthy as long as all the major averages continue trading above their respective 50 DMA lines and recent chart highs. The recent healthy action was in response to a very accommodative Fed, a series of stronger than expected Q1 results, and a host of solid economic data. Now that the market is back in a confirmed rally, odds favor higher, not lower, prices lie ahead.
Factory Orders Rise; Earnings Mixed To Strong:
On Tuesday, stocks slid as the latest rally cooled and investors digested the latest round of earnings and economic data. U.S. factory orders topped estimates in March as demand increased for machinery and computers which bodes well for the economic recovery and further business spending. The Commerce Department said factory orders rose +3%, a fifth consecutive increase, after a +0.7% gain in February. Meanwhile, the latest round of earnings data was mixed to slightly stronger which also bodes well for the ongoing recovery.
Market Outlook- Market In A Confirmed Rally
From our point of view, the market is back in “rally-mode” as all the major averages continue to trade above their respective 50 DMA lines and recent chart highs. However, we would be remiss not to note that a slew of leading stocks suffered heavy distribution on Tuesday which is not ideal. If you are looking for specific help navigating this market, please contact us for more information.
Want Better Results?
You Need Better Ideas!
We Know Markets!
Learn How We Can Help You!
Here are more articles you may like
The Personality of Your Stocks
Mark Fishman says stocks have personalities, and having success as an A.M.P.D. trader means finding
Active Trading Versus Buy-and-Hold
Mark Fishman maintains multiple investment portfolios. He has a traditional buy-and-hold portfolio for long-term positions
Avoiding Outcome Bias
Adam Sarhan says, if your risk is properly managed, the result of any single trade
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