05 May
Daily Market Commentary

Stocks Tank As Correction Take Hold

Wednesday, May 5, 2010
Market Commentary:

The major averages ended lower one day after sliding into a correction as the US dollar rallied and the euro tumbled. Volume totals ended mixed; higher on the Nasdaq composite and lower on the NYSE compared to Tuesday’s lofty levels. It was not encouraging to see the NYSE, Nasdaq and S&P 500 index all close below their respective 50 DMA lines on above average volume. Decliners trumped advancers by nearly a 4-to-1 ratio on the NYSE and by a 3-to-1 ratio on the Nasdaq exchange. New 52-week highs outnumbered new 52-week lows on the NYSE but trailed on the Nasdaq exchange for the first time since February. 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, down from the 7 issues that appeared on the prior session. Waning leadership has been evidenced by the recent lack of stocks making new highs as the rally came under pressure.

5 Reasons Why We Have Been Cautious In Recent Weeks:

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04 May
Daily Market Commentary

Stocks Tank On Contagion Woes

Tuesday, May 4, 2010
Stock Market Commentary:

The major averages tanked on Tuesday after the euro plunged to a one year low as fear spread that Europe’s debt crisis will spread and China’s manufacturing fell to a six-month low. Volume totals jumped on both exchanges reported on the NYSE and on the Nasdaq exchange compared to Monday’s levels which marked another distribution day for the major averages and led the NYSE composite to break its 50 DMA line for the first time since the March 1, 2010 FTD. Decliners trumped advancers on both exchanges but new 52-week highs still outnumbered new lows.

Contagion Woes Slam Markets:

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03 May
Daily Market Commentary

Stocks Jump After Greek Bailout

Monday, May 3, 2010
Market Commentary:

The major averages soared on the first trading day of the month after news broke that Greece will bailout. Volume totals on Monday were reported lower on the NYSE and on the Nasdaq exchange compared to Friday’s levels. Advancers led decliners by about a 3-to-1 ratio on the NYSE and by over a 2-to-1 ratio on the Nasdaq exchange. New 52-week highs easily trumped new 52-week lows. There were only 18 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 38 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally.

Greece Bailout, Healthy Earnings & Economic Data Lifts Stocks:

Over the weekend, news broke that the EU will spend $146 billion to bailout Greece. The news sent the EU plunging as fear spread that other EU nations might also need assistance. In the US, billionaire investor, Warren Buffett defended Goldman Sachs Group Inc. (GS) at his annual shareholders meeting in Omaha. Last year, Buffett invested $5 billion in the investment bank and said the bank should not be blamed for losses on lousy mortgage bets. Elsewhere, US manufacturing grew at the fastest pace since 2004 and personal income and spending also rose which helped lift stocks. Approximately +78% of the S&P 500 companies that have reported their Q1 results have topped estimates which bodes well for the economic recovery.

Market Action- Confirmed Rally:

It is important to note that the major averages have been steadily rallying since early February and a pullback of some sort should be expected.  The increasing number of distribution days is putting pressure on this 10-week rally. However, the fact that the market continues to shrug off most of the negative data bodes well for the bulls.
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30 Apr
Daily Market Commentary

Volatile Week On Wall Street

Friday, April 30, 2010
Stock Market Commentary:

Stocks experienced their most volatile week since February as investors digested a slew of economic, earnings, and political data. So far bredth has been very strong as advancers steadily outnumber decliners and new 52-week highs continue to trump new 52-week lows. It is important to note that a healthy crop of new leaders making new highs bodes well for any market rally.

Monday & Tuesday; Stocks Tank:

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29 Apr
Daily Market Commentary

Earnings & M&A News Lifts Stocks

Thursday, April 29, 2010
Market Commentary:

The major averages enjoyed their largest single day gain since February, helped by a slew of stronger-than-expected earnings and the latest multi billion dollar takover. Volume totals on Thursday were reported mixed; higher on the Nasdaq and lower on the NYSE. Advancers led decliners by about a  3-to-1 ratio on both major exchanges. Meanwhile, new 52-week highs easily trumped new 52-week lows. 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, higher than the 15 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally.

Earnings & M&A News Help Stocks Rally:

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28 Apr
Daily Market Commentary

Stocks Inch Higher As Fed Holds Rates Steady

Wednesday, April 28, 2010
Stock Market Commentary:

The major averages ended higher after the Federal Reserve held rates steady near historic lows and Spain’s debt was downgraded. Volume totals on Wednesday were reported lower compared to Tuesday’s totals which suggested large institutions were not aggressively buying stocks. Advancers led decliners by a 11-to-8 ratio on the NYSE and by a 14-to-13 ratio on both major exchanges. Meanwhile, new 52-week highs easily trumped new 52-week lows. There were 15 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, considerably lower than the 28 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally.

Next Domino To Fall: Spains’ Debt is Downgraded!

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27 Apr
Daily Market Commentary

Stocks Tank on EU Downgrades & Goldman Testimony

Tuesday, April 27, 2010
Market Commentary:

Stocks tanked after S&P Rating Services lowered Greek’s debt to junk and cut Portugal’s rating. This sent many European stock market’s plunging to their worst single day declines since November as fear spread that other nations will default on their debt. Volume totals on Tuesday were reported higher compared to Monday’s totals which marked another distribution day for the major averages. Decliners trumped advancers by over a 4-to-1 ratio on both major exchanges. Meanwhile, new 52-week highs easily trumped new 52-week lows. 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, lower than the 91 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally.

EU Downgrades Shake Confidence:

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26 Apr
Daily Market Commentary

Stocks End Near Lows; Financials & Housing Stocks Lag

Monday, April 26, 2010
Market Commentary:

The major averages ended mixed to mostly lower after weakness emerged from the closely followed financial and housing sectors. Volume on Monday was reported lower compared to Friday’s totals on both major exchanges. Decliners led advancers by a small margin on both exchanges. Meanwhile, new 52-week highs easily trumped new 52-week lows. In addition, it was encouraging to see new lows fall to the single digits on both exchanges. There were 91 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 80 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally.

Financials & Housing Stocks Lag:

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23 Apr
Daily Market Commentary

Another Strong Week on Wall Street

Friday, April 23, 2010
Stock Market Commentary:

The major averages ended higher this week as investors digested the latest round of economic and earnings news. Volume, an important indicator of institutional sponsorship, was reported lower compared to Thursday’s totals. Advancers led decliners by over a 2-to-1 ratio on the NYSE and by a 17-to-10 ratio on the Nasdaq exchange. New 52-week highs again easily trumped new lows on both exchanges. There were 80 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 70 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally.

Monday-Wednesday’s Action:

On Monday, stocks ended mixed after after Daimler AG (DAI +1.79%) and Citigroup (C -0.21%) reported better-than-expected results and news broke that the Securities and Exchange Commission did not unanimously approve pursuing a case against Goldman Sachs Group Inc. (GS -1.04%). Stocks edged higher on Tuesday after after Goldman Sachs (GS) said Q1 earnings almost doubled and reaffirmed that it did not mislead investors. After Tuesday’s close, Apple (AAPL +1.64%) blew away estimates after reporting another gang buster quarter.

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22 Apr
Daily Market Commentary

Stocks Rally After Shrugging Off Greek Woes

Thursday, April 22, 2010
Market Commentary:

The major averages shook off earlier weakness and turned positive after President Obama outlined his plan to over hall the financial system. Greek concerns swelled. Volume, an important indicator of institutional sponsorship, rose compared to Wednesday’s totals. Advancers led decliners by a 23-to-14 ratio on the NYSE and by a 17-to-10 ratio on the Nasdaq exchange. New 52-week highs still easily trumped new lows on both exchanges. There were 70 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 54 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally, but that number abruptly contracted amid the latest bout of distribution.

Europe’s Debt Continues To Explode!

The European Union said that Greece’s deficit was a stunning +13.6% of gross domestic product in 2009 which topped analysts estimates for a +12.9% reading. In addition, Ireland surpassed Greece as the EU nation with the largest deficit. It’s deficit was revised up to +14.3%. Initially, this sent stocks plunging as investors were concerned that the EU and the IMF will have to bailout more nations. However, their fears were allayed after President Obama gave a speech in lower Manhattan which outlined his plan to over hall the financial system.

Earnings, Earnings, & Earnings!

News was mixed on the earnings front, shares of Ebay Inc (EBAY -5.74%), Qualcomm Inc. (QCOM -7.74%), Nokia (NOK -13.11%) and Credit Suisse Group (CS -4.06%) all gapped down after reporting lackluster results. Meanwhile, shares of fast food chain Chipotle Mexican Grill (CMG +14.18%) and Isilon Systems (ISLN +22.77%) surged after reporting stellar results.
After Thursday’s close, shares of Amazon.com Inc. (AMZN –2.50%) and Microsoft Corp. (MSFT +0.19%) traded lower in afterhours trading after reporting their latest quarterly results while shares of American Express (AXP X+1.70%) jumped after their latest quarterly report was released.

Market Action- Confirmed Uptrend:

Remember, it is important to note that the major averages have been steadily rallying since early February and a pullback of some sort should be expected. However, the fact that we have yet to see a modest pullback bodes very well for the bulls. Trade accordingly.
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