28 Sep
Daily Market Commentary

Stocks Look Past Lousy Confidence Data

Tuesday, September 28, 2010
Stock Market Commentary:

The major averages ended higher as investors looked past the latest round of lackluster economic data. Volume totals were reported higher on the NYSE and on the Nasdaq exchange compared to Monday’s session which signaled large institutions were aggressively buying stocks. Advancers led decliners by over a 2-to-1 ratio on the NYSE and on the Nasdaq exchange. New 52-week highs easily outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange. There were 70 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 68 issues that appeared on the prior session.

Stocks  Look Past Lousy Confidence Data:

Stocks spent the first half of the session trading in the red as investors digested the latest round of mixed economic data. At 9:00AM EST, the S&P Case-Shiller housing price index (HPI) was released which showed a modest uptick in home prices around the country. The news was good, not great. One hour later, stocks fell after consumer confidence plunged below estimates. The Conference Board’s consumer confidence index slid to 48.5, which was down from last month’s reading of 53.2. Despite the negative data, it was encouraging to see the benchmark S&P 500 index fall to a 1132 before the bulls showed up and defended support. Longstanding readers of this column know that 1131 was resistance for most of the summer and has now become near term support.

Market Commentary- Confirmed Rally:

The action since this rally was confirmed on the September 1, 2010 follow-through day (FTD) has been strong. Looking forward, the window is open for disciplined investors to carefully buy high-ranked stocks, while many pundits are expecting that markets may consolidate following recent gains. It was encouraging to see the bulls show up and defend support (formerly resistance) again today. The next level of support for the major averages is their respective 200-day moving average (DMA) lines while the next level of resistance is their respective April highs. Trade accordingly.

Want Better Results?
Our Private Advisory Services Can Help You!

Sarhan Consulting provides both global macro and equity only consulting services to institutional clients around the world. For years, its clientele has participated in the firm’s objective market-based outlook, which has one primary goal: to provide stable trading ideas across all asset classes. 
Sarhan Capital’s consulting arm allows clients to participate in the idea generation process and be privy to many of Sarhan’s best ideas long before they are highlighted in other publications. In addition, clients receive objective feedback on their own ideas and are alerted each time Sarhan Capital traders buy and sell. Many institutional clients including hedge funds, private family offices, brokerages, registered investment advisers, and corporations, have turned to Sarhan Capital for personalized advisory/consulting services in recent years.

How We Can Help You:

  1. We employ a discretionary long/short global macro strategy that is profitable in both bull and bear markets.
  2. Achieve better results in the market by working with an objective third party who is not an internal “yes” man.
  3. Provide you with sound buy/sell ideas in real-time
  4. Provide objective feedback on your investment ideas and market outlook
  5. Contribute profitable ideas to your investment committee 
  6. All investment ideas are fully transparent, unbiased, and based on market action, not someone’s opinion.
  7. Help create uniformed structure within your organization!

 Contact Us Today To See How We Can Help You!

27 Sep
Daily Market Commentary

Stocks Digest Friday's Large Move

Monday, September 27, 2010
Stock Market Commentary:

Stocks ended lower on Monday as investors digested Friday’s large move. Volume totals were reported lower on the NYSE and on the Nasdaq exchange compared to the prior session which signaled large institutions were not aggressively selling stocks. Decliners led advancers by a 3-to-2 ratio on the NYSE and on the Nasdaq exchange. New 52-week highs easily outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange. There were 68 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower than the 74 issues that appeared on the prior session, and down from triple digits on Monday.

Markets Shrug Off Several Multi Billion Dollar M&A Deals:

Stocks were confined to a relatively tight trading session as the US dollar edged higher and gold prices inched lower from record levels. Before Monday’s open, several multi billion dollar deals were announced: Southwest Airlines (LUV +8.71%) announced plans to purchase AirTran Holdings Inc. (AAI +61.32%) for about $1.4 billion, Wal-Mart Stores Inc.(WMT -1.11%) proposed to buy South African consumer goods distributor Massmart Holdings Ltd. for about $4.25 billion and Unilever NV announced plans to acquire beauty products manufacturer Alberto Culver Co. (ACV +19.57%) for $3.7 billion.

Best September Since 1939!

Barring some unforeseen decline, the Dow Jones Industrial Average is on track for its strongest September since 1939! The major averages have rallied in each of the past four weeks which is the longest winning streak since eight consecutive weekly gains which ended in late April (which corresponds with the highest levels of the year).

Market Action- Confirmed Rally:

The action since this rally was confirmed on the September 1, 2010 follow-through day (FTD) has been strong. Looking forward, the window is open for disciplined investors to carefully buy high-ranked stocks, while many pundits are expecting that markets may consolidate following recent gains. It was encouraging to see the bulls show up and defend support (formerly resistance) last week. The next level of support for the major averages is their respective 200-day moving average (DMA) lines while the next level of resistance is their respective April highs. Trade accordingly.

Special Notice!
Advisory Services

Sarhan Consulting provides both global macro and equity only consulting services to institutional clients around the world. For years, its clientele has participated in the firm’s objective market-based outlook, which has one primary goal: to provide stable trading ideas across all asset classes. 
Sarhan Capital’s consulting arm allows clients to participate in the idea generation process and be privy to many of Sarhan’s best ideas long before they are highlighted in other publications. In addition, clients receive objective feedback on their own ideas and are alerted each time Sarhan Capital traders buy and sell. Many institutional clients including hedge funds, private family offices, brokerages, registered investment advisers, and corporations, have turned to Sarhan Capital for personalized advisory/consulting services in recent years.

How We Can Help You:

  1. We employ a discretionary long/short global macro strategy that is profitable in both bull and bear markets.
  2. Achieve better results in the market by working with an objective third party who is not an internal “yes” man.
  3. Provide you with sound buy/sell ideas in real-time
  4. Provide objective feedback on your investment ideas and market outlook
  5. Contribute profitable ideas to your investment committee 
  6. All investment ideas are fully transparent, unbiased, and based on market action, not someone’s opinion.
  7. Help create uniformed structure within your organization!

 Contact Us Today To See How We Can Help You!

24 Sep
Daily Market Commentary

4th Weekly Gain On Wall Street

Friday, September 24, 2010
Stock Market Commentary:

Stocks enjoyed their fourth consecutive weekly gain as investors digested a slew of economic, earnings, and Fed data. Volume totals were reported higher on the NYSE and on the Nasdaq exchange compared to Thursday’s session which signaled large institutions were aggressively buying stocks. Market internals remained postive as advancers continue to trump decliners and new 52-week highs easily outnumber new 52-week lows on the NYSE and on the Nasdaq exchange.

Monday & Tuesday’s Action: Stocks Soar Then Fall After Fed Meeting:

Stocks soared on Monday after Lennar Corp.(LEN) reported solid earnings that topped estimates and International Business Machines Corp (IBM) announced a $1.7 billion takeover. Lennar’s solid earnings helped offset a weaker than expected report from the National Association of Home Builders that showed home builders’ confidence remained unchanged at 13. September’s reading matched an 18-year low.
On Tuesday, stocks opened higher after the Commerce Department said housing starts, which are registered at the start of construction of a new home, unexpectedly grew in August. The reading topped estimates and helped signal a possible bottom to this 4-year housing meltdown. However stocks negatively reversed after the Federal Reserve decided to hold rates steady near record lows and left the door open for further economic stimulus.

Wednesday-Friday’s Action: Stocks Bounces Smartly Off Support:

The major averages ended lower on Wednesday after a lousy report from the housing market was released and several large cap technology stocks got smacked. Overnight, gold surged to a fresh record high as the US Dollar fell for the third straight week . The Federal Housing Finance Agency (FHFA) released its House Price Index (HPI) which showed home prices continued to fall. The report fell -0.5% in July after falling a revised -1.2% in June. The decline was largely due to the now-expired tax credit. Meanwhile, tech giants, Adobe Systems Inc. (ADBE) and Microsoft Corp. (MSFT) gapped down on heavy volume which dragged other stocks lower.
On Thursday, stocks ended lower and the S&P 500 closed below support (formerly resistance) after weaker than expected economic news in Europe spooked investors. Overnight, stock futures tanked after European PMI slid to the worst level in 7-months which bodes poorly for the economic recovery. In the US, weekly jobless claims rose by 12,000 to +465,000 as the total number of people receiving unemployment insurance fell. After the open, existing home sales and leading economic indicators rose which helped stocks briefly turn positive before a late-day sell-off sent stocks lower into the close. Stocks soared again on Friday as the US dollar tanked and the market reacted favorably to durable goods, new home sales, and upbeat confidence from Germany.

Market Action- Confirmed Rally:

The action since this rally was confirmed on the September 1, 2010 follow-through day (FTD) has been strong. Looking forward, the window is open for disciplined investors to carefully buy high-ranked stocks, while many so-called pundits are expecting that markets may consolidate following recent gains. It was encouraging to see the bulls show up and defend support (formerly resistance) this week. The next level of support for the major averages is their respective 200-day moving average (DMA) lines while the next level of resistance is their respective April highs. Trade accordingly.

Take Control Of Your Portfolio!!!  Learn How We Can Help Manage Your Wealth! 
Contact Us For A FREE Portfolio Review- Click here…

23 Sep
Daily Market Commentary

Stocks Fall On Weak Economic News

Thursday, September 23, 2010
Stock Market Commentary:

Stocks ended lower and the S&P 500 closed below support (formerly resistance) after weaker than expected economic news in Europe spooked investors. Volume totals were reported lower on the NYSE and on the Nasdaq exchange compared to the prior session which signaled large institutions were not aggressively selling stocks. Decliners trumped advancers by over a 2-to-1 ratio on the NYSE and on the Nasdaq exchange. New 52-week highs easily outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange. There were 36 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower than the 41 issues that appeared on the prior session, and down from triple digits on Monday.

Weak Economic Data Drags Stocks Lower:

Overnight, stock futures were lower after European PMI slid to the worst level in 7-months which bodes poorly for the economic recovery.  In the US, weekly jobless claims rose by 12,000 to +465,000 as the total number of people receiving unemployment insurance fell. After the open, existing home sales and leading economic indicators rose which helped stocks briefly turn positive before a late-day sell-off sent stocks lower into the close.

Market Action- Confirmed Rally:

Continue reading

22 Sep
Daily Market Commentary

Stocks Fall; Gold Hits Record High!

Wednesday, September 22, 2010
Stock Market Commentary:

The major averages ended lower after a lousy report from the housing market was released and several large cap technology stocks got smacked. Volume totals were reported mixed; slightly lower on the NYSE and higher on the Nasdaq exchange compared to the prior session. Decliners led advancers by almost a 2-to-1 ratio on the NYSE and by over a 2-to-1 ratio on the Nasdaq exchange. New 52-week highs easily outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange. There were 41 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower than the 81 issues that appeared on the prior session.

Gold Surges To Record High and Home Prices Fall:

Overnight, gold surged to a fresh record high as the US Dollar continued its two week decline. At 10:00AM EST, the Federal Housing Finance Agency (FHFA) released its House Price Index (HPI) which showed home prices continued to fall. The HPI mainly covers single-family homes using data provided by Fannie Mae and Freddie Mac. The report fell -0.5% in July after falling a revised -1.2% in June. The decline was largely due to the now-expired tax credit.

Two Tech Giants Get Smacked:

Continue reading

21 Sep
Daily Market Commentary

Stocks Fall After Fed Meeting

Tuesday, September 21, 2010
Stock Market Commentary:

Stocks negatively reversed after the Federal Reserve decided to hold rates steady near record lows and left the door open for further economic stimulus. Tuesday marked a distribution day for the major averages as volume topped Monday’s levels on the NYSE and on the Nasdaq exchange. Decliners led advancers by about a 2-to-1 ratio on the NYSE and on the Nasdaq exchange. New 52-week highs easily outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange. There were 81 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower than the 101 issues that appeared on the prior session.

Housing Starts Top Estimates:

Before Tuesday’s open, housing starts, which are registered at the start of construction for a new home, unexpectedly grew in August. The reading topped estimates and helped signal a possible bottom to this 4-year housing meltdown. It is very interesting to note that housing stocks topped out in the summer of 2005 which was one full year before the housing market started getting into trouble. In that vein, housing stocks appear to be tracing out a a large, albeit sloppy, bottom, which could have bullish ramifications if they begin to rally from here. Several other important housing reports are slated to be released later this week.

Stocks Fall After Fed Meeting:

Around 2:15pm EST, the Federal Reserve announced the decision of their latest meeting. The Fed held rates steady near historic lows and left the option to add more economic stimulus, if needed. The Fed also said that inflation remains below levels that indicate a healthy economy and made it clear that they were ready to provide “additional accommodation” to support the ongoing recovery. Stocks traded higher after the announcement but sellers showed up in the final hour and sent stocks lower.

Market Action- Confirmed Rally:

On average, the action since this rally was confirmed on the September 1, 2010 follow-through day (FTD) has been strong. Looking forward, the window is open for disciplined investors to carefully buy high-ranked stocks. It was very encouraging to see the major averages and several leading stocks break above stubborn resistance levels and continue marching higher. All the major averages had recently rallied above their respective 200-day moving average (DMA) lines, a clear sign that the overall market is in healthier shape. Now that the summer highs have been exceeded, the next important resistance levels for the major averages are their respective April highs.

We Manage Money For A LIVING…  Learn How We Can Help Manage Your Wealth!  Contact Us For A FREE Portfolio Review- Click here…

20 Sep
Daily Market Commentary

Summer Highs Are Breached, Next Stop; April's Highs

Monday, September 20, 2010
Stock Market Commentary:

Stocks rallied around the world and extended their three week rally after positive data was released from the ailing housing sector and the latest multi-billion dollar merger was announced. As expected, volume was reported lower on the NYSE and on the Nasdaq exchange compared to Friday’s heavy options inflated levels. Advancers trumped decliners by over a 4-to-1 ratio on the NYSE and by nearly a 4-to-1 ratio on the Nasdaq exchange. New 52-week highs easily outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange. There were 101 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, nicely higher than the 59 issues that appeared on the prior session.

Latest M&A News, Housing Sentiment Is Weak But Lennar Earnings Offset Housing Woes:

Stocks opened higher after Lennar Corp.(LEN +8.22%) reported solid earnings that topped estimates and International Business Machines Corp (IBM +1.23%) announced a $1.7 billion takeover. Lennar’s stronger than expected earnings helped allay concerns that the ailing housing market is deteriorating. The stronger earnings helped offset a weaker than expected report from the National Association of Home Builders that showed home builders’ confidence remained unchanged at 13. September’s reading  matched an 18-year low.

Market Action- Confirmed Rally:

The action since this rally was confirmed on the September 1, 2010 follow-through day (FTD) has been strong. Looking forward, the window is open for disciplined investors to carefully buy high-ranked stocks, while many pundits are expecting that markets may consolidate following recent gains. It is very encouraging to see the major averages and several leading stocks break above stubborn resistance levels and continue marching higher. All the major averages rallied and managed to stay above their respective 200-day moving average (DMA) lines last week, which is another encouraging sign. Now that the summer highs are breached, the next important resistance level for the major averages are their respective April highs.

We Manage Money For A LIVING…  Learn How We Can Help Manage Your Wealth! 
Contact Us For A FREE Portfolio Review- Click here…

17 Sep
Daily Market Commentary

Stocks Rally For 3rd Straight Week

Friday, September 17, 2010
Stock Market Commentary:

Stocks enjoyed their third weekly gain and closed near their summer highs as investors digested a slew of economic data. Volume was reported higher on the NYSE and on the Nasdaq exchange compared to Thursday’s levels due to options expirations. Advancers led decliners by about a 3-to-2 ratio on the NYSE and by about a 4-to-3 ratio on the Nasdaq exchange. New 52-week highs easily outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange. There were 59 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 48 issues that appeared on the prior session.

Monday & Tuesday’s Action; Stocks Rally On New Bank Rules (Basel III):

On Monday, stocks surged around the world after bank regulators met in Basel Switzerland over the weekend and passed a new set of capital rules for banks. The new agreement now known as “Basel III” set new capital requirements for banks around the world. The new standards are viewed as bullish for the ailing financial industry as they help prevent excessive leverage which threatened the global financial system in 2008. On Tuesday, stocks ended mixed after August’s retail sales topped estimates and gold surged to a fresh all-time high. Stocks in Europe were under pressure before Tuesday’s open after a report showed economic growth in the Euro zone was slowing. In the US, retail sales topped estimates and rose by the largest pace in five months. The Commerce Department said total retail sales swelled by +0.4% following a revised +0.3% rise in July. This was the second consecutive monthly gain and bodes well for the economic recovery. 

Wednesday- Friday’s Action; Stocks Drift Higher And Close Near Resistance (Summer Highs):

Continue reading

16 Sep
Daily Market Commentary

Stocks End Mixed On Busy News Day

Thursday, September 16, 2010
Stock Market Commentary:

Stocks spent most of the day in the red but closed mixed and near their intraday highs after a slew of economic data was released. Volume was reported even on the NYSE and lower on the Nasdaq exchange compared to Wednesday’s levels. Decliners led advancers by a 3-to-2 ratio on the NYSE and by an 8-to-5 on the Nasdaq exchange. New 52-week highs easily outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange. There were 48 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 46 issues that appeared on the prior session.

UK Retail Sales & FedEx Dismal Forecast Hurt Stocks:

Stocks opened lower after the latest round of economic data suggests the economic recovery may be slowing. However, the bulls showed up and defended the major averages 200 DMA line for the fourth consecutive session. U.K. retail sales fell and FedEx Corp. (FDX -3.75%), the second-largest package-shipping company, lowered their profit forecasts which fell short of analyst estimates and bodes poorly for the economic recovery. FDX gapped down and sliced below its longer term 200 DMA line on Thursday as volume swelled. Meanwhile, a slew of housing stocks were smacked after home seizures surged to a record level.

Investors Digest: PPI, Jobless Claims, Philly Economic Index, and Poverty Rate:

 In other news, the producer price index (PPI) rose +0.4%, topped estimates, and was the largest increase in five months. The reading was twice as large as July’s total. Core prices, which exclude food and energy rose +0.1%. Elsewhere, the Labor Department said, weekly jobless claims fell by -3,000 to +450,000 last week which was lower than the Street’s forecast for +459,000. Finally, the Federal Reserve Bank of Philadelphia released its general economic index which rose to negative -0.7 this month. It was much higher than August’s reading of -7.7. In a separate report, the government said that the country’s poverty rate vaulted to +14.3% in 2009 which was the highest level since 1994, and the 43.6 million Americans in need is the largest reading in 51 years of record-keeping! This translates to approximately 1 in 7 Americans are living in poverty.The fact that more people, not less, have fallen into poverty is another negative data point for the struggling recovery.

Market Action- Confirmed Rally:

Overall, the action since this rally was confirmed on the September 1, 2010 follow-through day (FTD) remains healthy. Looking forward, the window is now open for disciplined investors to begin carefully buying high-ranked stocks again. It was encouraging to see a flurry of high-ranked leaders trigger fresh technical buy signals and break out of sound bases in recent weeks. All the major averages rallied above their respective 200-day moving average (DMA) lines this week, which is another encouraging sign. The next important resistance level the major averages are facing is their respective summer highs.

Take Control Of Your Portfolio!!!  Learn How We Can Help Manage Your Wealth! 
Contact Us For A FREE Portfolio Review- Click here…

15 Sep
Daily Market Commentary

Stocks Edge Higher As Dollar Falls

Wednesday, September 15, 2010
Stock Market Commentary:

Wednesday marked the second anniversary of the Lehman Brothers bankruptcy which accelerated the credit and financial crisis. Stocks ended higher as the US dollar fell for a fifth consecutive day against the euro and investors looked past tepid economic data from the NY Fed. Volume was reported slightly lower on the NYSE and about even on the Nasdaq exchange compared to Tuesday’s levels. Advancers led decliners by a small margin on the NYSE and on the Nasdaq exchange. New 52-week highs easily outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange. There were 46 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower than the 69 issues that appeared on the prior session.

Stocks Shrug Off Weak Economic Data:

Stocks opened lower after New York-area manufacturing and other industrial data slowed and missed forecasts. The The Federal Reserve Bank of New York’s general economic index slid to -4.1 in September which was the lowest reading since July 2009 and lower than August’s reading of +7.1. The reading was also lower than the Street’s estimate for a rise to 8 which is above the boom/bust level of zero. Oversea’s, the Bank of Japan (BOJ) intervened in the currency market to curb the Yen’s recent free-fall. The news helped send the US dollar lower for the fifth consecutive day which also helped lift dollar denominated assets; mainly stocks and commodities.  

Market Action- Confirmed Rally

Continue reading

«‹7273747576›»