18 Jun
Daily Market Commentary

New Rally Confirmed; Stocks Close Above 200 DMA Line

Friday, June 18, 2010
Stock Market Commentary:

Stocks ended higher this week, confirmed their latest rally attempt, and the benchmark S&P 500 index and the Dow Jones Industrial Average both closed above their respective 200 DMA lines which is an encouraging sign. Volume totals were reported higher on both major exchanges due to Friday’s quadruple witching day. Advancers led decliners by a 21-to-16 ratio on the NYSE and by a small margin on the Nasdaq exchange as the major averages continued consolidating Tuesday’s large gains. There were 33 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 22 issues that appeared on the prior session.  New 52-week highs outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.

Monday-Wednesday’s Action; Stocks March Higher:

On Monday, the major averages ended mixed but near their intra-day lows after Greece’s Debt was downgraded by Moody’s. However, instead of the usual selloff, the bulls promptly showed up on Tuesday and helped the major averages score a proper follow-through day (FTD) which confirmed their latest rally attempt. It was equally impressive to see stocks rally and close above their respective 200 DMA lines which has served as formidable resistance over the past 5 weeks. Stocks caught a bid after a New York manufacturing report suggested the global economy remains solid. The Federal Reserve Bank of New York’s general economic index, which measures economic activity in the NY area, rose for an 11th consecutive month which helped offset European Debt woes. In addition, the US dollar continued its two week sell off which helped a slew of dollar denominated assets rally.

Continue reading

17 Jun
Daily Market Commentary

Stocks Edge Higher After Retesting 200 DMA Line

Thursday, June 17, 2010
Stock Market Commentary:

The major averages ended slightly higher as investors digested a slew of economic data and BP’s (BP) CEO spent the day testifying on Capital Hill. Volume totals were reported lower on both major exchanges, which signaled that large institutions were not aggressively selling stocks. Advancers were about even with decliners on the NYSE and on the Nasdaq exchange as the major averages continued consolidating Tuesday’s large move. There were 22 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower than the 35 issues that appeared on the prior session.  New 52-week highs outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.

Investors Digest A Slew of Economic Data: Jobless Claims, CPI, & Leading Indicators:

Before Thursday’s opening bell, the Labor Department said US jobless claims rose to 472,000 last week and the consumer price index slid which helped allay inflation woes. After the bell, the Federal Reserve Bank of Philadelphia’s general economic index fell to a 10-month low of 8, less than half the median estimate of Wall Street economists. The Conference Board’s index of leading indicators in April edged down -0.1%, following a +1.3% increase in the prior month.

Stock Market Action- Confirmed Rally:

Continue reading

16 Jun
Daily Market Commentary

Stocks End Mixed As Dollar Edges Higher

Wednesday, June 16, 2010
Market Commentary:

The major averages traded between positive and negative territory after BP Plc’s (BP) said it plans to create a $20 billion fund to pay damages from the oil spill and investors digested the latest round of lukewarm economic data. Volume totals were reported lower on the Nasdaq and on the NYSE which signaled large institutions were not aggressively selling stocks. Breadth was negative as decliners led advancers by an 11-to-8 ratio on the NYSE and nearly a 4-to-3 ratio on the Nasdaq exchange. There were 35 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower than the 37 issues that appeared on the prior session.  New 52-week highs outnumbered new 52-week lows on the NYSE but trailed on the Nasdaq exchange.

Investors Digest A Slew Of Economic Data:

Before Wednesday’s opening bell, the Commerce Department said housing starts slid -10%, the largest decline since March 2009, to a 593,000 annual rate. This was was lower from a revised 659,000 pace in April and trailed analyst estimates. Meanwhile, building permits, a sign of future construction, unexpectedly fell to a one-year low and single-family starts suffered the largest decline since 1991. The weaker than expected housing data coupled with the sharp two month sell-off in many housing stocks rises the likelihood of a double dip decline in the ailing housing market. 
Separately, Fannie Mae (FNM) and Freddie Mac (FRE) plunged after their regulator told the two mortgage-finance companies to delist their stock from the New York Stock Exchange. Finally, the produce price index (PPI) was released on Wednesday and did little to excite investors.

Market Action- Confirmed Rally:

Continue reading

15 Jun
Daily Market Commentary

Stocks Score A FTD, New Rally Confirmed!

Tuesday, June 15, 2010
Stock Market Commentary:

The current rally was confirmed after all the major averages scored a proper follow-through day (FTD) on Tuesday. Volume totals were reported higher on the Nasdaq and the NYSE. Advancers led decliners by a 5-to-1 ratio on the NYSE and nearly a 4-to-1 ratio on the Nasdaq exchange. There were 37 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 31 issues that appeared on the prior session.  New 52-week highs outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.

Stocks Rally As Dollar Falls For 6th Consecutive Day:

The MSCI World Index advanced for a sixth consecutive day as the greenback continued its six day slide after a New York manufacturing report suggested the global economy remains strong. The Federal Reserve Bank of New York’s general economic index, which measures economic activity in the NY area, rose for an 11th consecutive month which helped offset European Debt woes. The weaker dollar helped a slew of dollar denominated assets (mainly stocks & commodities) rally. Elsewhere, oil jumped above $76 a barrel and the euro rose above $1.23.

Market Action- Confirmed Rally:

Continue reading

14 Jun
Daily Market Commentary

Stocks Flirt With Resistance

Monday, June 14, 2010
Market Commentary:

Stocks ended mixed but near their intraday lows after Greece’s Debt was downgraded by Moody’s. Volume totals were mixed compared to Friday’s levels; higher on the Nasdaq and lower on the NYSE. Advancers led decliners by nearly a 2-to-1 ratio on the NYSE and by a 5-to-4 ratio on the Nasdaq exchange. There were 31 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 19 issues that appeared on the prior session.  New 52-week highs outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.

200 DMA Line Is Resistance:

The MSCI World Index rose for a fifth consecutive day which was its the longest winning streak since October 2009 as the US dollar continued its 5-day slide against the euro. This should not surprise any of our readers because we have written for months about the inverse relationship between the dollar and dollar denominated assets (mainly stocks and commodities). That said, the euro edged higher after European industrial production rose which suggests the global economy continues to rebound. The euro and US equities pulled back after Moody’s cut Greece’s credit rating and ended near the intraday lows.

Market Action- In A Correction:

Continue reading

11 Jun
Daily Market Commentary

Another Volatile Week On Wall Street

Friday, June 11, 2010
Market Commentary:

It was another volatile week on Wall Street as investors digested a slew of economic data. Stocks edged higher on Friday as volume was slid compared to Thursday’s levels on both major exchanges. Advancers led decliners by over a 2-to-1 ratio on the NYSE and the Nasdaq exchange. There were 19 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 12 issues that appeared on the prior session.  New 52-week highs outnumbered new 52-week lows on the NYSE, but not on the Nasdaq exchange.

Monday-Tuesday’s Action: May’s Lows Are Testest But Will They Hold?

Stocks opened negatively reversed on Monday (opened higher but closed lower) as the euro slid to a fresh 4-year low. The selling continued in the aftermath of Friday’s dismal jobs report. Goldman Sachs (GS) got smacked after it received a subpoena from the Financial Crisis Inquiry Commission (FCIS) due to its failure to comply with requests for documents. Stocks finished mixed on Tuesday after Fed Chairman Ben Bernanke said he does not expect a “double dip” recession in the US.The Dow Jones Industrial Average, Nasdaq Composite, and small-cap Russell 2000 indexes all traded below their May 25, 2010 lows while the benchmark S&P 500 Index came within 2 points of last month’s low. So far, support near prior chart lows has been tested and appears to have held, but any further deterioration would suggest that another leg lower may follow.

Wednesday-Friday’s Action:

Continue reading

10 Jun
Daily Market Commentary

Stocks Surge But Where's The Volume?

Thursday, June 10, 2010
Stock Market Commentary:

The major averages and a slew of commodities surged after a host of healthy economic data was released from Asia and the European Central Bank (ECB) and the Bank of England (BOE) held rates steady near historic lows. Volume, an important indicator of institutional sponsorship, was reported lighter than Wednesday’s levels on both major exchanges which prevented the S&P 500 from scoring a follow-through day (FTD) and suggested large institutions were not aggressively buying stocks. Advancers trumped decliners by well  over a 5-to-1 ratio on the NYSE and on the Nasdaq exchange. There were only 12 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 5 issues that appeared on the prior session.  New 52-week highs outnumbered new 52-week lows on the NYSE but trailed new lows on the Nasdaq exchange.

Strong Economic Data From China, Japan, Australia & The US Lifts Stocks:

Overnight, stocks in Asia rose after a slew of healthy economic reports were released from China, Japan and Australia. The latest data showed accelerating economic growth which was a welcoming sign from that region. Chinese exports surged to a six year high which helped reaffirm the notion that the world’s fastest-growing major economy will continue to fuel the global recovery. Japan’s GDP rose at an annualized +5% rate in the first quarter and Australia’s nonfarm payrolls report rose for a third consecutive month. In the US, weekly jobless claims fell while the trade deficit widened to the highest level in a year as exports fell. All this, sent the US dollar lower and a host of dollar denominated assets higher (mainly stocks and commodities) as these markets work off their deeply oversold levels.

Market Action- In A Correction:

Continue reading

09 Jun
Daily Market Commentary

Stocks Negatively Reverse After Beige Book Shows "Modest" Economic Growth

Wednesday, June 9, 2010
Market Commentary:

The major averages negatively reversed (opened higher and closed lower) after the Fed’s Beige Book showed the economy is growing “modestly.” Volume, an important indicator of institutional sponsorship, was lighter than Tuesday’s levels. Advancers led decliners by about a 10-to-9 ratio on the NYSE but trailed by about a 6-to-7 ratio on the Nasdaq exchange. There were only 5 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 3 issues that appeared on the prior session.  New 52-week highs outnumbered new 52-week lows on the NYSE but trailed by a large margin on the Nasdaq exchange.

Fed Beige Book Shows “Modest” Economic Growth:

Investors dumped stocks after the Federal Reserve released its Beige Book. The Fed survey said economic growth was “modest” which worried investors. The Beige Book which is published two weeks before a Fed meeting said, “Economic activity continued to improve since the last report across all 12 Federal Reserve Districts, although many Districts described the pace of growth as ‘modest.’” Elsewhere, a slew of energy and financial stocks tanked which dragged the major averages lower in the final few hours before the close.

Price & Volume Action Of Leading Stocks & The Major Averages:

Continue reading

08 Jun
Daily Market Commentary

Stocks End Mixed After Hitting Fresh 2010 Lows!

Tuesday, June 8, 2010
Market Commentary:

The major averages traded between positive and negative territory after Fed Chairman Ben Bernanke said he does not expect a double dip recession in the US. Volume, an important indicator of institutional sponsorship,  was higher than Monday’s levels. Advancers led decliners by a 23-to-15 ratio on the NYSE but trailed by an 11-to-16 ratio on the Nasdaq exchange. There were only 3 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower than the 4 issues that appeared on the prior session.  New 52-week lows outnumbered new 52-week highs on the NYSE and the Nasdaq exchange.

Major Averages Take Last Month’s Low:

The Dow Jones Industrial Average, Nasdaq composite, and small-cap Russell 2000 index all traded below their May 25, 2010 lows while the benchmark S&P 500 came within 2 points of last month’s low. So far, support has been tested and appears to have held but any further downside would suggest another leg lower may follow. The market reacted somewhat positively to Ben Bernanke’s comments that he does not believe a double dip recession will occur in the US but the price/volume action of the major averages in recent weeks disagrees with him.

All Eyes On The Euro:

Continue reading

07 Jun
Daily Market Commentary

Selling Continues As Stocks Close At A Fresh 2010 Low

Monday, June 7, 2010
Market Commentary:

The major averages negatively reversed on Monday (opened higher but closed lower) as the euro slid to fresh four year low. Volume, an important indicator of institutional sponsorship,  was lower than Friday’s jobs-inflated levels. Decliners trumped advancers by almost a 3-to-1 ratio on the NYSE and by nearly a 5-to-1 ratio on the Nasdaq exchange. There were only 4 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower than the 6 issues that appeared on the prior session.  New 52-week lows outnumbered new 52-week highs on the NYSE and the Nasdaq exchange.

Weak Euro Pressures Stocks:

Overnight, the euro slid to $1.188 which was a fresh four year low and sparked concern that EU contagion woes will worsen. A host of Asian markets also fell on the first trading day since the US jobs report was released on Friday. This set a negative tone for Monday’s session. After a slightly positive open, the bears quickly showed up and sent stocks lower after a slew of market leaders traded in the red. Apple Inc. (AAPL -1.96%) fell even though Steve Jobs released the new iPhone. The new phone sports a clearer screen and the ability for video chat, among other upgrades. Elsewhere, Goldman Sachs (GS -2.51%) got smacked after it received a subpoena from the Financial Crisis Inquiry Commission (FCIS) due to its failure to comply with requests for documents.

Market Action- In A  Correction:

Continue reading

«‹7980818283›»