Stocks & Commodities Smacked As EU Debt Woes Continue

Tuesday, November 16, 2010
Stock Market Commentary:

Stocks and commodities got smacked as the euro plunged to a fresh multi-month low and the USD continued marching higher. The 12-week rally is currently under pressure evidenced by the ominous number of distribution days that have emerged in recent weeks coupled with the sloppy action we have outlined several times in this column.

EU Debt Woes Continue To Weigh On Markets:

The “big” story that continues to weigh on the market is the ongoing geopolitical woes in Europe. On Tuesday, Ireland’s government held an emergency meeting to discuss the possibility of a bailout. In other news, Austria said it did not want to contribute to Greece’s bailout because they did not satisfy several conditions of their prior bailout. In the US, the producer price index (PPI) came in less than expected which allayed inflation woes but sparked concerns about deflation. The consumer price index (CPI) is slated to be released before Wednesday’s open.

Market Action- Confirmed Rally, Week 12:

Heretofore, the action since this rally was confirmed on the September 1, 2010 follow-through day (FTD) has been strong but the market action has been wide-and-loose which is not a healthy sign and has caused the major averages to all pullback to their respective 50 DMA lines. This is the next important level of support for the major averages and several leading stocks. It is of the utmost importance for the bulls to show up and defend the 50 DMA line in order for this rally to remain intact. Caution and patience is key at this point. Trade accordingly.

Are You Looking For Someone To Manage Your Money?
Our Private Wealth Management Services Can Help You!

Sarhan Wealth Management provides both global macro and equity only consulting services to high net worth and institutional clients around the world. For years, our clientele has participated in the firm’s objective market-based outlook, which has one primary goal: to provide robust trading ideas across all asset classes. Since 2004 we have outperformed the S&P 500 on a regular basis. These results are based solely on our weekly research. All our historical data is available upon request.

How we can improve your performance:

• Achieve better results in the market by working with an objective third party.
• Provide you with sound buy/sell ideas in real-time.
• Provide objective feedback on your investment ideas and market outlook.
• Contribute profitable ideas to your investment committee (if applicable).
• All investment ideas are fully transparent, unbiased, and based on market action, not opinions.
• Help create uniformed structure within your organization.

Contact Us To Learn How We Can Help You!