25 Aug
Daily Market Commentary

Week-In-Review: Stocks Bounce As Investors Wait For A Tax Cut

Stocks Bounce As Bulls Quell Bearish Pressure- For Now

Stocks rallied last week after the narrative in D.C. shifted toward a tax cut. Technically, as long as Monday’s low holds, this appears to be another short-term and shallow pullback. The major indices are tracing out a new early entry (downward trendline) and a break above that level will trigger a new technical buy signal. The Dow Jones Industrial Average & the benchmark S&P 500 snapped a two-week losing streak as investors grew hopeful that the White House will be able to cut taxes. Meanwhile, the Nasdaq Composite and the Small-Cap Russell 2000 both snapped a 4-week losing streak as buyers showed up and quelled the bearish pressure. Finally, the Dow Jones Transportation Index continues to woefully under-perform its peers and is flirting with major support (recent lows). The fact that the transports continues to under-perform bodes poorly for both Wall Street and Main Street.

Mon-Wed Action:

Monday was a near term low for stocks as the market opened lower but closed higher. Whenever that happens, after a few week decline, that usually means the market is ready to turn higher. Thankfully, the political rhetoric eased considerably and investors turned their focus to a tax cut which is a net positive for the economy. Separately, President Donald Trump presented a strategy for the war in Afghanistan and possible engagement in South Asia. The U.S. and South Korea also engaged in war games on Monday in a strategy to deter North Korea. Stocks soared nearly 200 points on Tuesday after buyers showed up and short sellers covered their shorts. The primary catalyst for the strong rally was renewed hope that the White House will be able to cut taxes. Stocks slid on Wednesday after the S&P 500 and the Nasdaq Composite rallied into their respective 50 day moving average lines – which was near term resistance.

Thur & Fri Action:

Stocks edged higher on Thursday as investors waited to hear from global central banks at their annual meeting in Jackson Hole, Wyoming. Economic news was light, initial jobless claims rose by 2k to 234k just below the Street’s estimate for 238k. Stocks were quiet on Friday as the market waited to hear what the Central Banks had to say from the Jackson Hole meeting.

Market Outlook: Pull-back Mode

So far, it appears a near term low was placed on Monday. Going forward, as long as stocks trade above Monday’s low, this appears to be another nice shallow pullback. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…

18 Aug
Daily Market Commentary

Week-In-Review: Summer Pullback Underway

Summer Pullback Underway

The Dow Jones Industrial Average and S&P 500 fell for a second straight week as selling finally showed up and volatility jumped. The tape remains somewhat split: The Dow Jones Industrial Average is out-performing its peers on a relative basis. The Nasdaq Composite and S&P 500 are a little weaker and closed below their respective 50 DMA lines. Meanwhile, the Dow Jones Transportation Index and the small-cap Russell 2000 continue to under-perform and are both trading below their respective 50 and longer-term 200 DMA lines. The good news for the bulls is that this pullback still remains somewhat shallow (for now). As of Friday’s close, the major indices are only down low single digits (1-6 percentage points) from their all-time highs. The Russell 2000 has erased all of its gains for 2017. Separately, the Nasdaq is down 4 consecutive weeks and bearish sentiment is picking up. Bottom line, the tape is split and continues to deteriorate. If the bulls managed to show up and curb the selling pressure we could be in for a very nice near-term bounce.

Mon-Wed Action:

Stocks rallied nicely on Monday as fears subsided regarding the ongoing nuclear tensions with North Korea. The bulls showed up and defended the 50 DMA line for the major indices. On Tuesday, stocks were quiet as investors digested Monday’s rally and digested a slew of data. Retail sales grew by +0.6% month-over-month, beating estimates +0.3%. Separately, the housing market index came in at 68, beating estimates for 65. Stocks edged higher on Wednesday but closed in the middle of the range after the Fed released the minutes of its latest meeting and President Trump closed his business advisory counsel after several CEOs defected. That was the first major rift between the business community and the White House.

Thur & Fri Action:

Stocks fell hard on Thursday, after the market lost confidence in the White House’s ability to get its economic agenda passed. The small-cap Russell 2000 briefly turned negative for the year. Meanwhile, the S&P 500 and the Nasdaq composite both sliced below important support near their respective 50 DMA lines. Finally, the Dow Jones Industrial Average, which has been outperforming its peers of late, pulled back into its 50 DMA line. Stocks fell on Friday after Steve Bannon was the latest person to be fired from the White House.

Market Outlook: Pull-back Mode

Once again, the market is pulling back and investors want to see if this will be another buy-the-dip opportunity or turn into something more severe. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…

11 Aug
Daily Market Commentary

Week-In-Review: Stocks End Week Lower As Nuclear Tensions Rise

Nuclear Tensions Send Stocks Lower – From Overbought Conditions

The market fell from extremely overbought levels last week as tensions rose between the U.S. and North Korea. The major indices were extended to the upside and way overdue to pullback. The S&P 500 and Nasdaq pulled back into their respective 50 DMA lines while the Dow Jones Industrial Average is still above it. Meanwhile, the small-cap Russell 2000 and the Dow Jones Transportation Index are weaker on a relative basis and are both pulling back into their longer-term 200 DMA lines. Separately, the VIX soared last week from very low levels. The key going forward is to analyze the health of this pullback to see if it is another buying opportunity or the start of something more severe.

Mon-Wed Action:

On Monday, the Dow enjoyed its 9th straight record close as investors continued to digest a slew of earnings. So far, earnings have grown +10.1%, according to data from FactSet. That is stronger than the initial estimate of +6.2% growth. Stocks fell on Tuesday after President Donald Trump warned North Korea about facing “fire and fury” if they continued to threaten the United States. Stocks ended a little lower on Wednesday after North Korea responded by saying it was “carefully examining” the idea of a missile strike on Guam, a U.S. Pacific territory.

Thur & Fri Action:

Stocks fell hard on Thursday, as geopolitical tensions remained elevated and the the VIX spiked.  The CBOE Volatility Index (VIX), is also known as the best gauge of fear in the market, jumped to its highest level since June. Stocks were quiet on Friday after inflation came in less than expected. The Consumer Price Index, which measures consumer prices, only rose by +0.1% last month, missing estimates for a gain of +0.2%.

Market Outlook: Earnings Remain Front and Center

The Dow briefly broke above 22k then fell below it as it begins to pullback to digest a very strong rally. As we have said several times over the past month, as long as support holds, the bulls remain in control of this market. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…

04 Aug
Daily Market Commentary

Week-In-Review: Stocks End Mixed As Earnings Continue In Droves

Stocks End Mixed As Earnings Continue In Droves

The market ended higher last week as investors digested a slew of mostly positive earnings and economic data. The big economic news came on Friday when the government reported a stronger-than-expected jobs report. So far, earnings are mixed to mostly higher. Apple (AAPL), Netflix (NFLX), Facebook (FB), Tesla (TSLA), Shopify (SHOP), Weight Watchers (WTW), Remax (RMAX), and Boeing (BA), are some of the well-known stocks that are up while: Amazon (AMZN), Google (GOOG), Applied Optoelectronics (AAOI), Mercadolibre (MELI), and 3M (MMM) fell after reporting earnings. For the week, the Dow and S&P 500 rallied while the Nasdaq and small-cap Russell 2000 fell. The S&P 500 is tracing out a bullish 3-weeks tight pattern and is setting up nicely to move higher from here. The Dow is very extended to the upside and over due to pullback. The next level of support to watch is the 50 day moving average lines for the major indices.

Mon-Wed Action:

On Monday, stocks ended mixed on Monday as the Dow Jones Industrial Average approached 22,000. So far, 73% of the S&P 500 companies that already reported earnings posted stronger than expected numbers on both the top and bottom lines, according to data from FactSet. In economic news, pending home sales increased by +1.5% in June, beating estimates for +0.9%. Stocks edged higher on Tuesday as the Dow flirted with 22k. The ISM manufacturing index came in at 56.3, just beating estimates for 56.2. After Tuesday’s close, Apple gapped up after reporting another very strong quarter. Apple’s big rally was enough to send the Dow above 22k on Wednesday.

Thur & Fri Action:

Stocks rallied again on Thursday as investors digested a slew of earnings and waited for Friday’s jobs report to be announced. The political drama continued with President Trump and Russia after the WSJ reported that Special Counsel Robert Mueller impaneled a grand jury in his investigation into Russia’s involvement in the U.S. election. Before Friday’s open, the government said U.S. employers added 209,000 new jobs last month easily beating the Street’s estimate for 178,000. The stronger than expected jobs report paved the way for the Fed to raise rates again later this year.

Market Outlook: Earnings Remain Front and Center

Capital continues to flow into U.S. equities helping the Dow soar, and close, above 22k. The bulls showed up and defended important support in June which is very bullish for the market. As we have said several times over the past month, as long as support holds, the bulls remain in control of this market. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…

28 Jul
Daily Market Commentary

Week-In-Review: Stocks End Mixed As Earnings Continue In Droves

Stocks End Mixed As Earnings Continue In Droves

The market ended mixed last week as investors digested a slew of earnings and economic data. So far, earnings are mixed: Netflix, Facebook, Amazon, and Google reported earnings and Netflix and Facebook are up, but the others are down. Several other well-known stocks reported earnings last week with a mixed reaction as well. For the week, the Dow ended higher but the Nasdaq, S&P 500 and small-cap Russell 2000 fell. Near term, the market looks a tad overbought and due for a little pullback. The next level of resistance to watch is the 50 day moving average lines for the major indices.

Mon-Wed Action:

On Monday, stocks ended mixed as the Nasdaq rallied while the Dow and S&P 500 ended slightly lower. After the close, Alphabet (GOOG), Google’s parent company, reported earnings and the stock fell on the big EU fine. Stocks rallied on Tuesday after Caterpillar (CAT), General Motors (GM) and McDonald’s (MCD) rallied while 3M (MMM) fell on earnings. Overall, it is a net positive to see the major indices end higher. Stocks rallied on Wednesday after the Fed kept rates unchanged and said they will begin unwinding their massive balance sheet “relatively soon.” Elsewhere, a slew of earnings were released and, on average, the results remained mostly positive. After the bell, Facebook (FB) jumped after reporting earnings.

Thur & Fri Action:

Stocks opened higher on Thursday but closed lower after sellers showed up in a slew of tech stocks. Facebook was the standout winner while other stocks got hit such as Twitter (TWTR) in techland. The market is getting overbought/extended to the upside and is way overdue to pullback. After the close, Amazon fell after reporting earnings. Stocks slid on Friday as investors digested the latest round of economic and earnings data. Before the open, the government said, GDP grew by +2.6%, which matched estimates. As expected, Amazon dragged the market lower.

Market Outlook: All Eyes On Earnings

The bulls showed up and defended important support in June which is very bullish for the market. As we have said several times over the past month, as long as support holds, the bulls remain in control of this market. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…

21 Jul
Daily Market Commentary

Week-In-Review: Stocks End Mixed As Earnings Season Begins

Stocks End Mixed As Earnings Season Begins

The broader indices ended mixed while small cap stocks tried to breakout last week as earnings season officially began. Just to recap the first full week of earnings, the data is mixed. So far, nearly all of the big banks reported earnings, and nearly all of them, except for Morgan Stanley, fell on the day they reported. That weighed on the Dow and S&P 500 as investors digested the data. Elsewhere, Netflix jumped to a fresh record high after reporting a big jump in subscribers. Meanwhile, Qualcomm, Microsoft, and eBay all fell after reporting earnings. The good news for the bulls is that the market remains exceptionally strong and the major indices are trading just below their record highs.

Mon-Wed Action:

Stocks rallied on Monday helping the Nasdaq post a 7-day win streak as earnings season continues in droves. So far, analysts are expecting Q2 earnings to grow by +6.2%. Stocks were mixed on Tuesday as the Nasdaq rallied while the Dow fell. Bank of America and Goldman Sachs both fell after reporting earnings while shares of Netflix soared after reporting a big jump in subscribers. On Wednesday, the major indices hit new highs on the back of the latest round of earnings. Elsewhere, Housing starts vaulted +8.3% last month, hitting their highest level since February 2017. Separately, Mortgage applications, rose +6.3%.

Thur & Fri Action:

On Thursday, stocks were quiet as investors digested the latest meeting from the European Central Bank (ECB) and waited for the latest round of earnings to be released. Separately, Bloomberg reported that special counsel Robert Mueller is looking into the business dealings of President Donald Trump, Jared Kushner and other associates. This comes a day after Trump warned Muller against it during an interview with the New York Times on Wednesday. Stocks fell on Friday as investors digested the latest round of earnings data. General Electric (GE), Microsoft (MSFT), eBay (EBAY), and a few other well known stocks fell hard after reporting earnings.

Market Outlook: All Eyes On Earnings

The bulls showed up and defended important support in June which is very bullish for the market. As we have said several times over the past month, as long as support holds, the bulls remain in control of this market. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…

14 Jul
Daily Market Commentary

Week-In-Review: Stocks Rally As Earnings Season Begins

Stocks Rally As Earnings Season Begins

Stocks ended higher last week as investors digested a busy week of macro data and earnings season officially began.  The big bullish catalyst last week came from global central banks. The U.S. Fed and the European Central Bank (ECB) made dovish comments which prompted buyers to return from a 4-week hiatus. First, Janet Yellen softened her recent slightly hawkish stance when she gave a somewhat dovish testimony on Capitol Hill. Second, the ECB said it is ready to print money (continue QE) for the next few years. This was a bullish one-two punch that helped buyers return to the market. Earnings season officially kicked off last week and a slew of companies will be reporting over the next several weeks. Remember, in addition to analyzing the data, we focus more on how the market reacts to the data. Three of the big banks opened lower on Friday after reporting earnings: Wells Fargo (WFC), JP Morgan (JPM) and Citigroup (C). So far, that is not ideal but we’ll see how it plays out over the next few weeks.

Mon-Wed Action:

Stocks closed mostly higher on Monday as investors prepared for earnings season. Amazon’s stock jumped nearly 2% as the company got set for its big Prime Day sales. Prime Day features big deals for Amazon’s Prime customers and tries to encourage non-prime members to join prime. Needless to say, Prime Day was a huge success for the company. On Tuesday, stocks ended higher in a volatile session after Donald Trump Jr. released a chain of emails that showed direct connection with a Russian lawyer. Intra-day, the Dow fell about 100 points but recovered by the close, again showing how strong the market is right now. Minneapolis Fed President Neel Kashkari said U.S. banks are still too big to fail which barely moved the needle. Stocks rallied nicely on Wednesday after Janet Yellen gave dovish testimony on Capitol Hill. Yellen basically said the Fed is ready to shift back to an easy money policies if conditions deteriorate. Big money also flowed into a slew of beaten down tech stocks as they come back into play.

Thur & Fri Action:

On Thursday, stocks rallied helping the Dow hit a fresh record high. The ECB said it is ready to continue QE for the next few years which is also a very dovish stance. Remember, the entire move from the historic 2009 low was based on easy money from global central banks. So the fact that they are still ready to shift back to an ultra-easy money stance was enough to bring buyers back into the market. Stocks edged higher on Friday after Wells Fargo, JP Morgan and Citigroup all reported earnings. Interestingly, all three stocks fell in the morning but the broader market still rallied.

Market Outlook: Bulls Defend Support

The bulls showed up and defended important support in June which is very bullish for the market. As we have said several times over the past month, as long as support holds, the bulls remain in control of this market. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…

07 Jul
Daily Market Commentary

Week-In-Review: Stocks End Mostly Higher Ahead of Earnings Season

Stocks End Mixed To Mostly Higher Ahead of Earnings Season

Stocks ended mixed to mostly higher on the first week of the third quarter. Stepping back, the market remains split: tech stocks remain under a little pressure while the Dow Industrials, S&P 500 and Russell 2000 all closed above their respective 50 DMA lines. The bulls showed up on Friday and defended the 50 DMA line for the S&P 500 which is a near term positive. The market is simply pulling back to digest the recent and very strong post-election rally.  At this point, the pullback remains relatively mild/healthy. One or two good up days will easily set the market up for another leg higher. Conversely, if the selling continues and the recent lows are breached, then lower prices will likely follow. I do want to note that the Nasdaq is sending mixed signals. On one hand, it is tracing out a somewhat bearish head and shoulders top pattern and it is also tracing out a somewhat bullish double bottom continuation pattern. Until we see more heavy selling coupled with more technical damage, odds favor we still head higher from here. On another note, the big macro catalyst that we have to deal with in the second half of 2017 (and beyond) is a slightly more hawkish environment from global central banks. The era of ultra-easy money is behind us (until the next crisis hits). On a shorter to more intermediate term basis, the next big catalyst ahead of us is earnings season.

Mon-Wed Action:

Stocks rallied nicely on Monday as the market closed early ahead of the July 4th holiday. History tells us that July 3rd tends to have a strong upward bias. Since the 1920’s, the market has been positive nearly 73% of the time. Elsewhere, economic data was mixed. The IHS Markit U.S. Manufacturing PMI index for June, slid to 52.0 from 52.7 in May. The ISM manufacturing index for June, rose to 57.8 from 54.9 in May. Monthly auto sales leveled off which sent a slew of auto-repair stocks lower. The stock market was closed on Tuesday in observance of the July 4th holiday. Stocks opened lower and closed higher on Wednesday as investors returned from the holiday. Factory Orders came in -0.8%, missing estimates for -0.5%. Elsewhere, the Fed released the minutes of its latest meeting. The minutes showed the Fed is a little more hawkish than initially expected.

Thur & Fri Action:

On Thursday, stocks fell hard as investors digested a slew of economic data and the European Central Bank (ECB) was a little more hawkish than expected. Crude oil also plunged hard for the week which dragged a slew of energy stocks lower. Stocks rallied nicely on Friday after the jobs report beat estimates. The Labor Department said U.S. employers added 222,000 new jobs last month, beating estimates for 170,000. That capped the strongest quarter for jobs since 2010. Separately, the G-20 started their much anticipated meeting.

Market Outlook: Bulls Defend Support – For Now

The bulls showed up and defended important support last week (50 dma line) in the S&P 500. As long as support holds, the bulls remain in control of this market. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…

30 Jun
Daily Market Commentary

Week-In-Review: 2017 Is Half-Way Over; Nasdaq Tracing Out Big Head and Shoulders Top

Nasdaq Traces Out A Big Negative Monthly Reversal
The complexion of the market changed considerably in June as fatigue finally set in after a very strong rally. June was littered with a spate of heavy volume down days, especially in tech stocks, which is not ideal for this aging bull market. The biggest negative divergence occurred in the Nasdaq and the Nasdaq 100, when they both traced out a large negative reversal on a monthly basis. They both closed below their respective 50 DMA lines on Friday which is not ideal. Additionally, they both snapped a very strong win streak and are tracing out a large head-and-shoulders top pattern.  In fact, over the past 12 months, the Nasdaq only had two down months (Oct 2016 and June 2017). Normally, a down month is not a big deal but when it is a big negative reversal on a monthly basis, occurs after a big move, happens on heavy volume, and a slew of leading stocks were smacked, then something else is at play.  The market went from being exceptionally strong to beginning to show signs of near-term fatigue in June. As of Friday’s close, the so-called FAANG stocks are not acting well- only Facebook closed above its 50 DMA line while Amazon, Apple, Netflix and Google (Alphabet) are all below their respective 50 DMA lines. Remember, the 50 DMA line is a normal area of support, so a close below that level is not ideal. The bulls argue that this is another normal and healthy pullback because even with all the technical damage occurring, the major averages are still only a few (<4%) percentage points below their record highs. From where I sit, if the bulls show up and send the market higher from here- then we will have another very nice buying opportunity and there are a ton of early entry points forming in leading stocks. Conversely, if the selling gets worse, and all the major indices close below their respective 50 DMA lines, then a much more defensive stance will be warranted.

Mon-Wed Action:

Stocks opened higher but closed in the lower half of the range on Monday on the last full trading week of the month and quarter. Durable goods orders fell -1.1%, missing estimates for negative -0.4%. The Chicago Fed National Activity Index fell -0.26, missing estimates for a small gain of 0.32. The Dallas Fed Mfg Survey came in at 12.3, lower than the last reading of 23.3. On Tuesday, stocks fell hard after the Senate delayed the health-care vote and sellers showed up and sent a slew of tech stocks lower in heavy volume. Once again, economic data was mixed. The S&P Corelogic Case-Shiller HPI came in at +0.3%, missing estimates for +0.6%. Separately, consumer confidence came in at 118.9, slightly higher than the Street’s forecast of 116.7. Finally, the Richmond Fed Manufacturing Index came in at 7, missing the consensus reading of 8. Mixed to less-than-thrilling economic data aside, the heavy volume sell off in tech stocks was definitely not a healthy sign.
Stocks bounced back hard on Wednesday after bank stocks soared and the bulls showed up and defended the 50 DMA line for the Nasdaq. After Wednesday’s close, the Fed released the results of its “stress test” and all the banks passed. Either the market was extremely lucky or someone leaked the information ahead of time. Separately, Janet Yellen and a few other Federal Reserve Officials publicly expressed concerns about the stock market. Mr. Williams said the stock market is running on ‘fumes’ and Dr. Yellen said, asset prices are ‘rich’ at these levels. Separately, pending home sales slid -0.8%, missing estimates for a gain of +0.5%.

Thur & Fri Action:

On Thursday, the sellers showed up in spades and sent a slew of tech stocks lower in heavy volume. The market appears to be tracing out a near term top as so many stocks continue to fall in heavy volume. Before the open, the government said, GDP grew by +1.4%, in Q1 2017, beating estimates for a gain of +1.2%. That didn’t stop the sellers from showing up. Stocks edged higher on Friday as the bulls showed up to defend the 50 DMA line for the Nasdaq on the last trading day of the month and quarter. June was littered with a spate of heavy volume down days which is not ideal for the market. We will see how this plays out over the summer.

Market Outlook: Bulls Defend Support

The bulls showed up and defended important support last week (50 dma line). As long as support holds, the bulls remain in control of this market. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…

23 Jun
Daily Market Commentary

Week-In-Review: Bulls Defend Critical Support

Bulls Defend Critical Support

Stocks ended mostly higher last week after the bulls showed up and defended critical support. As we have said since the beginning of June, the 50 day moving average line is the critical line in the sand to watch for the major indices. It was encouraging to see that important level defended, especially for the Nasdaq and Nasdaq 100. Once again, the latest pullback has been very shallow in both size (small percent decline) and scope (short in duration). The Nasdaq is not out of the woods just yet, but the bulls remain in clear control as long as the 50 DMA line holds. So far, this appears to be a perfectly normal and healthy pullback after a big run. Underneath the surface we are seeing big money rotate into undervalued sectors which bodes well for this strong bull market. Looking ahead, the next important areas of support to watch are: Russel 2000: 1351, then 1335, then 1308. The Dow Industrials: 20.6K, then 20.4k, S&P 500: 2352, then 2322.25, Nasdaq Composite: 5995, then 5805, then 5769.39. Until those levels are breached on a closing basis, the bulls remain in control on a short, intermediate, and long term time-frame. Remember, next week is the end of the month which normally has a slight upward bias. Keep in mind, if the selling gets worse, a defensive stance is warranted.

Mon-Wed Action:

The bulls showed up on Monday and successfully defended the 50 DMA line for the Nasdaq and Nasdaq 100. That was extremely important and that helped the Dow Jones Industrial Average & the benchmark S&P 500 jump to a fresh record high. Stocks ended a little lower on Tuesday after oil officially fell back into a bear market (defined by a decline of 20% below a recent high) and investors continued to rotate into several undervalued areas in the market, namely biotech and health care stocks. Biotechs caught a very nice bid last week as big money searched for value. Stocks ended mixed on Wednesday as investors digested the latest round of economic data. Weekly mortgage applications grew by +0.6%, which was lower than last week’s +2.8% gain. Separately, existing home sales came in at 5.62M, beating estimates for a gain of 5.55M.

Thur & Fri Action:

Stocks were quiet on Thursday as investors digested the latest round of economic data. Weekly Jobless claims came in at 241,000, beating estimates for 240,000. The FHFA House Price Index grew by +0.7%, beating estimates for +0.5%. Leading indicators grew by +0.3%, matching estimates for +0.3%. The Kansas City Fed Manufacturing Index came in at 11, higher than the last reading of 8. Stocks were quiet on Friday after New Home Sales came in at 610k, beating estimates for 590k.

Market Outlook: Bulls Defend Support

The bulls showed up and defended important support last week (50 dma line). As long as support holds, the bulls remain in clear control of this market. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…

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