04 Jun
Daily Market Commentary

Stocks Tank On Tepid Jobs Report; Euro Plunges To A New Multi-Year Low!

Friday, June 4, 2010
Stock Market Commentary:

It was another volatile week on Wall Street as investors digested a questionable follow-through day (FTD), a very weak jobs report, and saw the euro plunge to a fresh multi-year low! On Friday, volume totals easily topped Thursday’s levels on both major exchanges much indicated heavy distributional pressure from the institutional crowd. Decliners trumped advancers by a 7-to-1 ratio on the NYSE and by more than an 8-to-1 ratio on the Nasdaq exchange. There were only 6 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, much lower than the 28 issues that appeared on the prior session. New 52-week lower outnumbered new 52-week highs on the NYSE and the Nasdaq exchange.

Tuesday & Wednesday’s Action- Questionable FTD Emerges:

Continue reading

03 Jun
Daily Market Commentary

Market's Edge Higher & Wait For Friday's Jobs Report

Thursday, June 3, 2010
Stock Market Commentary:

Stocks closed higher as investors digested a slew of mixed economic data. Volume totals in the US markets were reported mixed compared to Wednesday’s totals; slightly higher on the Nasdaq and lower on the NYSE. Advancers led decliners by a 12-to-7 ratio on the NYSE and by a 17-to-10 ratio on the Nasdaq exchange. There were 28 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 10 issues that appeared on the prior session. New 52-week highs outnumbered new 52-week lows on the NYSE and the Nasdaq exchange.

Economic Data: Jobs & the ISM Service Index:

Thursday’s economic news did little to move the market: retail sales lagged, weekly jobless claims slid, and the ISM service index rose. The Labor Department said jobless claims fell by -10,000 to 453,000 last week and the ADP Employer Services report, based on private-sector payrolls, rose by +55,000 jobs. The ADP reading fell short of the Street’s +70,000 estimate. Before Friday’s opening bell, the Labor Department is slated to released last month’s payrolls report. Economists believe that payrolls rose +523,000 in May which would be the fifth consecutive monthly increase and the largest reading since 1983. Meanwhile, the Institute for Supply Management’s index of non-manufacturing businesses, which currently comprises approximately +90% of the economy, held steady at 55.4 for a third month.  

Market Action- Confirmed Rally:

Continue reading

02 Jun
Daily Market Commentary

Where's the Volume? Stocks Rally on Mixed Volume

Wednesday, June 2, 2010 
Stock Market Commentary:

The major averages rallied smartly on Wednesday after a stronger than expected report from the ailing housing sector was released. Volume totals in the US markets were reported mixed compared to Tuesday’s totals; higher on the Nasdaq and lower on the NYSE. Advancers trumped decliners by over a 4-to-1 ratio on the NYSE and about a 4-to-1 ratio on the Nasdaq exchange. There were only 10 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 highs on the Nasdaq exchange.

Wednesday’s Headlines- Yen Falls, Buffett Testifies, and Pending Home Sales Rise:

Continue reading

01 Jun
Daily Market Commentary

Stocks & Euro Tank On Strong Economic Data

Monday, June 1, 2010
Stock Market Commentary:

The major averages traded between positive and negative territory as investors digested the latest round stronger than expected economic data. On Tuesday, volume totals were mixed, reported slightly higher compared to Friday’s totals on the NYSE while the Nasdaq exchange’s volume total was lower.  Decliners led advancers by over a 3-to-1 ratio on the NYSE and over a 4-to-1 ratio on the Nasdaq exchange. There were 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, sharply lower than the 12 issues that appeared on the prior session. New 52-week highs outnumbered new 52-week lows on the NYSE while new lows outnumbered new highs on the Nasdaq exchange. 

Euro Hits New 2010 Low As Financials & Energy Shares Tumble:

Continue reading

27 May
Daily Market Commentary

Stocks Jump As China Eases Debt Woes

Thursday, May 27, 2010
Stock Market Commentary:

Stocks surged around the world after China said it remains a long-term investor in Europe which helped the euro snap a losing streak and China’s stock market to score a follow-through day (FTD). Volume totals were reported lower compared to Wednesday’s totals on both major exchanges while the indices ended unanimously higher.  Meanwhile advancers trumped decliners by over an 8-to-1 ratio on the NYSE and over an 6-to-1 ratio on the Nasdaq exchange. There were 9 high-ranked companies from the CANSLIM.netLeaders List that made a new 52-week high and appeared on the CANSLIM.netBreakOuts Page, higher than the 8 issues that appeared on Tuesday. New 52-week highs outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.  It is difficult for the market to mount a sustained rally without a healthy crop of strong leaders.

China Eases Debt Woes & Scores a FTD:

Continue reading

26 May
Daily Market Commentary

Stocks & Euro Negatively Reverse

Wednesday, May, 26, 2010
Stock Market Commentary:

The major averages and the euro negatively reversed (opened higher but closed lower) after Italy announced that it will restructure $30 billion in debt and Germany’s bond auction was less than stellar. Volume was higher compared to Tuesday’s totals on both major exchanges while advancers led decliners by a 23-to-15 ratio on the Nasdaq exchange and a 15-to-11 ratio on the NYSE. There were 8 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 0 issues that appeared on Monday. It is difficult for the market to mount a sustained rally without a healthy crop of strong leaders. New 52-week highs outnumbered new 52-week lows on the NYSE and trailed on the Nasdaq exchange.

Italy Cuts Budget By $30.4 Billion:

Continue reading

25 May
Daily Market Commentary

Stocks Rally After Hitting Fresh 2010 Lows

Tuesday, May 25, 2010
Stock Market Commentary:

The major averages closed mixed after geopolitical tensions esclated between North and South Korea. Volume was higher than Monday’s levels which was a welcomed sign. Decliners led advancers by nearly a 2-to-1 ratio on the NYSE and by over a 2-to-1 ratio on the Nasdaq exchange. New 52-week lows trumped new 52-week highs on the Nasdaq exchange and on the NYSE. Leadership dried up on Tuesday as there were 0 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 Friday. It is difficult for the market to mount a sustained rally without a healthy crop of strong leaders.

North Korea Cuts Ties With South Korea:

Overnight, stocks plunged in Asia and Europe after bank borrowing costs jumped and North Korea said it will sever ties with South Korea as political tensions continue to mount. On Monday, the US announced plans to conduct anti-submarine exercises with South Korea after the March 26 torpedoing of a South Korean warship. The US dollar rallied on the news which sent the a slew of dollar denominated assets lower on the news (i.e. stocks and commodities).

Financial Stocks Rally:

In the US, Representative Barney Frank, who will lead congressional talks on the much anticipated financial-regulation bill, said Senate language that would require commercial banks to prevent swap-trading “goes too far.” This helped a slew of financial stocks rally from fresh 2010 lows. Goldman Sachs (GS), Morgan Stanley (MS), Bank of America (BAC), among others, positively reversed (opened lower and closed higher) which was a welcomed sign.

Market Action- In A Correction:

All the major averages sliced below Friday’s lows which effectively ended the current rally attempt and reset the base count. However, the benchmark S&P 500 managed to close higher for the day which marked Day 1 of a new rally attempt for that index.  In addition, the earliest a proper follow-through day (FTD) could occur would be Friday, providing Tuesday’s lows are not breached. However, if at anytime, Tuesday’s lows are breached, then the day count will be reset. What does all of this mean for investors? Simple, the market remains in a steep correction which reiterates the importance of adopting a strong defense stance until a new rally is confirmed. Trade accordingly.

24 May
Daily Market Commentary

Stocks Edge Lower As EU Debt Woes Spread

Monday, May 24, 2010
Stock Market Commentary:

The major averages ended lower as the dollar rallied after European debt woes continued to spread. As expected volume was lighter compared to Friday’s heavy options expiration levels. Decliners led advancers by more than a 23-to-15 ratio on the NYSE and by nearly a 2-to-1 ratio on the Nasdaq exchange. New 52-week lows outnumbered new 52-week highs on the Nasdaq but trailed on the NYSE. Leadership was narrow on Monday as 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, higher than the 0 issues that appeared on Friday. It is difficult for the market to rally without a healthy crop of strong leaders.

Spanish Bank Fails:

Fresh contagion woes spread after Spain said it stepped in to save one of its largest banks. The Bank of Spain put CajaSur, a large Spanish bank, under a provisional administrator after the bank lost 596 million euros ($739 million) on 426 million euros in revenue last year. This sent a slew of financial shares lower across the globe as investors were concerned that more banks will fail. 

Existing Home Sales Rise; But Housing Stocks Fall:

Continue reading

21 May
Daily Market Commentary

Day 1 Of A New Rally Attempt

Friday, May 21, 2010
Stock Market Commentary:

Stocks got clobbered this week sending all of the major averages below their respective 200-day moving average (DMA) lines as contagion and economic woes dominated the headlines. A series of options expired on Friday which caused a spike in volume compared to Thursday’s levels on both major exchanges. All week, volume expanded as the major averages declined which was a clear sign that institutional investors were aggressively dumping stocks. In addition, breadth was decisevly negative on both major exchanges. New 52-week lows steadily outnumbered new 52-week highs which is not an encouraging sign.

Monday & Tuesday’s Action- The Selling Begins:

Continue reading

20 May
Daily Market Commentary

Stocks Plunge Below 200 DMA line On Heavy Volume

Thursday, May 20, 2010
Market Commentary:

Stocks got pounded on Thursday and sliced below their respective 200 DMA lines after a series of lackluster economic reports were released. Volume totals were reported higher on the Nasdaq and the NYSE compared to Wednesday’s total which was not an encouraging sign. Decliners trumped advancers by over a 10-to-1 ratio on the NYSE and over an 11-to-1 ratio on the Nasdaq exchange. New 52-week lows outnumbered new 52-week highs on both major exchanges. There were 0 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 3 issues that appeared on the prior session.

Tepid Economic Data & Contagion Fears Lower Economic Outlook:

Continue reading

«‹8081828384›»