Stocks were mixed for much of Tuesday as investors digested a slew of mixed earnings and economic data. It is very encouraging to see the Nasdaq 100 continue to lead its peers and remain perched near its 2011 high! Technically, it is encouraging to see the major averages find support and bounce off their respective 50 DMA lines in the middle of July. Looking forward, the next level of support are the 2011 lows/the 200 DMA lines and the next level of resistance are the 2011 highs.
Debt Deadline Approaches, Earnings & Economic Data Mixed:
On Tuesday, investors digested a slew of mixed earnings and economic data and continued to wait for a solution to the debt problem in D.C. Earnings news was mixed: NFLX, UPX, & MMM were among some of the large profile companies that fell after releasing their Q2 results. Alternatively, shares of BIDU, BRCM, & F traded higher after releasing their Q2 results.
Data on the Economic front was mixed to slightly positive. The S&P Case-Shiller index of U.S. home prices rose in May. This was received well by the market and was the second consecutive monthly gain for domestic home prices. Meanwhile, a separate report showed that new-home sales slid -1% in June to an annual rate of 312,000. Economists like to see an average annual rate near 750,000 to be considered healthy. Finally, U.S. consumer confidence rose in July which bodes well for the economic recovery. The Conference Board said its index hit 59.5 in July which topped analyst estimates.
Market Outlook- Confirmed Rally
The last week of June’s strong action suggests the market is back in a confirmed rally. As our longstanding clients/readers know, we like to filter out the noise and focus on what matters most: market action. That said, the recent action suggests the rally is back in a confirmed rally as all the major averages are now flirting with fresh 2011 highs. Until all the major averages violate their respective 50 DMA lines on a closing basis, the market deserves the bullish benefit of the doubt. If you are looking for specific help navigating this market, please contact us for more information.
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.
The Debt Waiting Game Continues
Tuesday, July 26, 2011
Stock Market Commentary:
Stocks were mixed for much of Tuesday as investors digested a slew of mixed earnings and economic data. It is very encouraging to see the Nasdaq 100 continue to lead its peers and remain perched near its 2011 high! Technically, it is encouraging to see the major averages find support and bounce off their respective 50 DMA lines in the middle of July. Looking forward, the next level of support are the 2011 lows/the 200 DMA lines and the next level of resistance are the 2011 highs.
Debt Deadline Approaches, Earnings & Economic Data Mixed:
On Tuesday, investors digested a slew of mixed earnings and economic data and continued to wait for a solution to the debt problem in D.C. Earnings news was mixed: NFLX, UPX, & MMM were among some of the large profile companies that fell after releasing their Q2 results. Alternatively, shares of BIDU, BRCM, & F traded higher after releasing their Q2 results.
Data on the Economic front was mixed to slightly positive. The S&P Case-Shiller index of U.S. home prices rose in May. This was received well by the market and was the second consecutive monthly gain for domestic home prices. Meanwhile, a separate report showed that new-home sales slid -1% in June to an annual rate of 312,000. Economists like to see an average annual rate near 750,000 to be considered healthy. Finally, U.S. consumer confidence rose in July which bodes well for the economic recovery. The Conference Board said its index hit 59.5 in July which topped analyst estimates.
Market Outlook- Confirmed Rally
The last week of June’s strong action suggests the market is back in a confirmed rally. As our longstanding clients/readers know, we like to filter out the noise and focus on what matters most: market action. That said, the recent action suggests the rally is back in a confirmed rally as all the major averages are now flirting with fresh 2011 highs. Until all the major averages violate their respective 50 DMA lines on a closing basis, the market deserves the bullish benefit of the doubt. If you are looking for specific help navigating this market, please contact us for more information.
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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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