07 Apr
Daily Market Commentary

Stocks Fall As Consumer Credit Contracts

Wednesday, April 7, 2010
Market Commentary:

The major averages ended lower, experiencing their largest single day decline since February, after consumer credit fell and concern about Greece defaulting accelerated. Volume totals on the NYSE and on the Nasdaq exchange were reported higher compared to Tuesday’s totals which marked the latest distribution day for the major averages in recent weeks. Breadth was negative as decliners led advancers by about a 2-to-1 ratio on the NYSE, and by a 4-to-3 ratio on the Nasdaq exchange. New 52-week highs trumped new lows on both exchanges yet again. There were 52 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 58 issues that appeared on the prior session.

Consumer Credit Contracts; Stocks Fall:

The Federal Reserve said consumer borrowing slid by a larger than expected reading of $11.5 billion in February. The fear that lower consumer spending may curtial economic growth played a pivotal role in sending stocks lower on Wednesday. In Europe, fear spread that Greece may default after rejecting the EU-IMF backed aid package. This sent the euro lower (greenback higher) for a third consecutive day which put pressure on dollar denominated assets- mainly stocks and commodities. 

Market Action- Confirmed Rally:

The benchmark S&P 500 Index currently has 5 distribution days while the Nasdaq Composite and Dow Jones Industrial Average have 4 since the March 1, 2010 follow-though-day (FTD). These distribution days have not been damaging, and normally it is considered healthy for the major averages to have less than 4 distribution days in a four week period. Therefore, the fact that we currently have 5 distribution days for the S&P 500 suggests a more cautious approach may be prudent. Trade accordingly.
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06 Apr
Daily Market Commentary

Investors Digest News From All Corners Of The World

Tuesday, April 6, 2010
Market Commentary:

Stocks opened lower after the Australian Central Bank raised interest rates for a 5th time by a quarter point to +4.25% and Greece rejected an EU-IMF aid package. The market’s internals remain healthy as this rally enters its 6th week since the March 1, 2010 follow-through day (FTD). It is also encouraging to see the major averages (and a slew of leading stocks) hold on to their gains after such a healthy advance.

Investors Digest News From All Corners Of The World:

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05 Apr
Daily Market Commentary

Stocks Rally On Healthy Economic Data

Monday, April 5, 2010
Market Commentary:

The major averages opened higher after the latest round of stronger than expected economic data was released. Monday was the first trading day after March’s nonfarm payrolls report was released. Stocks rallied around the world after the Labor Department reported the strongest monthly reading in payrolls since Q1 2007. The US dollar fell which also helped stocks and commodities rally. Crude oil broke out of a multi month base and hit a fresh 18 month high on signs the economy is improving.

Healthy Economic Data: ISM Service Index & Pending Home Sales:

Elsewhere, the ISM released its service index which topped analysts’s estimates. Separately, pending home sales unexpectedly rose which bodes well for the ailing housing market. The healthly housing data helped a slew of housing stocks rally as investors believe the “worst is now over.”

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01 Apr
Daily Market Commentary

Strong Start To Q2

Thursday, April 1, 2010 Market Commentary:

Stocks rallied on this shortened holiday week as investors digested the latest round of healthy economic data and Q1 came to close. Volume totals on the NYSE and on the Nasdaq exchange were reported lighter compared to Wednesday’s session. Breadth was positive, advancers led decliners by nearly a 3-to-1 ratio on the NYSE and by a 14-to-13 ratio on the Nasdaq exchange. New 52-week highs trumped new lows on both exchanges yet again. Meanwhile, there were 43 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 16 issues that appeared on the prior session.

Monday & Tuesday’s Headlines:

Stocks rallied on Monday as the US dollar fell after the government said consumer spending rose in February for a fifth cosecutive month while personal income levels held steady. On Tuesday, stocks closed with modest gains after trading between positive and negative as investors digested a slew of economic data. Housing stocks sold off after the S&P/Case-Shiller index of home prices was released. The 20-city home-price index unexpectedly rose +0.3% in January. The closely watched index tracks monthly changes of home prices in 20 metropolitan regions across the country and is used as a good proxy for the underlying health of the residential real estate market. Elsewhere, the Conference Board released its consumer sentiment index which rose to +52.5 in March, up from +46.4 in February.

Wednesday & Thursday’s Action:

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31 Mar
Daily Market Commentary

Stocks End Q1 Higher But Last Day Lower

Wednesday, March 31, 2010
Market Commentary:

The major averages ended lower on the last day of the first quarter. For the year and quarter, US equities rallied as investors looked past the Greek woes and remain optimistic about the economic recovery. Volume totals on the NYSE and on the Nasdaq exchange were reported higher compared to Tuesday’s session which marked a distribution day for both major exchanges. Decliners led advancers by an 11-to-8 ratio on the NYSE and by a 17-to-10 ratio on the Nasdaq exchange. There were only 16 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 44 issues that appeared on the prior session. New 52-week highs outnumbered new lows on both exchanges yet again.

Economic Data: ADP Payrolls Report, Chicago PMI, & Factory Orders:

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30 Mar
Daily Market Commentary

Stocks End Mixed On Healthy Economic Data

Tuesday, March 30, 2010 
Market commentary:

The major averages traded between positive and negative territory after consumer confidence and home prices topped estimates. Volume totals on the NYSE and on the Nasdaq exchange were reported mixed; higher on the Nasdaq and lower on the NYSE while advancers led decliners by about a 10-to-9 ratio on the NYSE and by about a 15-to-13 ratio on the Nasdaq exchanges. There were 44 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 lows on both exchanges yet again.

Housing & Consumer Confidence Top Estimates:

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29 Mar
Daily Market Commentary

Stocks Edge Higher As Dollar Falls

Monday, March 29, 2010
Market Commentary:

The US dollar fell which helped send a slew of dollar denominated assets higher on Monday. However, volume totals on the NYSE and on the Nasdaq exchange were reported lower compared to Friday’s totals while advancers led decliners by a healthy margin on both exchanges. 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 17 issues that appeared on the prior session. New 52-week highs outnumbered new lows on both exchanges yet again.

Domestic & Foregin Economic Data:

The government said consumer spending rose in February for a fifth consecutive month while personal income held steady. The Labor Department is slated to release February’s jobs report this Friday even though the stock market will be closed in observance of Good Friday. Many pundits believe that Friday’s jobs report will display the largest monthly increase in payrolls in nearly three years. Elsewhere, the European Union said business and consumer confidence rose which is another welcomed sign.

Dollar Down; Stocks & Commodities Up:

All this, helped send the US dollar lower which, in turn, sent a slew of stocks and commodities higher. Oil enjoyed its largest single day advance in 5 weeks. Crude oil for May delivery jumped nearly +3% to $82.18 a barrel in New York. Meanwhile, Copper rose nearly +4% and hit a fresh 11- week high of $3.5355 a pound. Gold and silver both advanced, also helped by a weaker dollar. 
Market Action: Confirmed Rally- Week 5
The fact that there have only been two distribution days since the follow-though-day (FTD) bodes well for this nascent rally. It is also a welcome sign to see the market continue to improve as investors digest the latest round of stronger than expected economic and earnings data. Remember that now that a new rally has been confirmed, the window is open to proactively be buying high quality breakouts meeting the investment system guidelines. Trade accordingly.
Professional Money Management Services: Free Portfolio Review
Our skilled team of portfolio managers knows how to follow the rules of this fact-based investment system. If your portfolio is greater than $100,000 and you would like a free portfolio review, please Click Here to get connected with one of our portfolio managers. ** Serious inquires only, please.

26 Mar
Daily Market Commentary

Week In Review: Stocks Advance As Investors Digest A Slew of Political, Economic & Earnings Data

Friday, March 26, 2010
Market Commentary:

For the week, the major averages ended higher as investors digested a slew of political, economic, and earnings data. The volume totals on the NYSE and on the Nasdaq exchange were reported lower compared to Thursday’s totals which was an encouraging sign. Advancers led decliners by a 10-to-9 ratio on the NYSE and were about even on the Nasdaq exchange. There were 17 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 58 issues that appeared on the prior session. New 52-week highs again overwhelmingly trumped new lows on both exchanges.

Monday & Tuesday’s Action:

On Monday, the major averages ended higher as the dollar fell after Congress passed the historic health care bill. Stocks continued rallying on Tuesday after stronger-than-expected data was released from the ailing housing market. All the major averages rallied to new recovery highs after the National Association of Realtors said existing US home sales slowed to 0.6% last month which topped estimates. February’s reading was also higher from January’s -7.2% decline.

Wednesday- Friday’s Action:

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25 Mar
Daily Market Commentary

Stocks End Near Lows As Dollar Rallies

Thursday, March 25, 2010
Market Commentary:

The major averages ended near their intraday lows after France and Germany backed an IMF supported plan to help Greece. The volume totals on the NYSE and on the Nasdaq exchange were reported slightly higher compared to Wednesday’s totals.  Decliners led advancers by a 22-to-17 ratio on the NYSE and by a 16-to-10 ratio on the Nasdaq exchange. There were 58 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 29 issues that appeared on the prior session. New 52-week highs again overwhelmingly trumped new lows on both exchanges

Euro Falls After EU Taps IMF:

French President Nicolas Sarkozy agreed with German Chancellor Angela Merkel’s proposal to ask the IMF to help rescue Greece. As expected, the euro continued its week long plunge as investors fear that other European nations will soon need to be bailed out. The European Union held a summit in Brussels that came close to officially calling for the IMF to provide emergency funds for Greece in addition to bilateral loans from other European nations. European Central Bank President Jean-Claude Trichet said the bank will extend its emergency collateral rules beyond 2010 which will help Greece emerge from the worst economic crisis since WWII. In other news, Dubai said that it plans to restructure $9.5 billion in Dubai World debt.

Healthy Economic Data Helped Stocks:

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24 Mar
Daily Market Commentary

Stocks Down; Dollar Up

Wednesday, March 24, 2010
Market Commentary:

The major averages, US Treasuries, the euro and a slew of commodities pulled back as the dollar advanced after Portugal’s debt was downgraded by Fitch.The volume total on the NYSE was about even compared to Monday’s totals, while volume was reported slightly higher on the Nasdaq exchange. Decliners led advancers by more than a 2-to-1 ratio on the NYSE and on the Nasdaq exchange. There were 29 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 77 issues that appeared on the prior session. New 52-week highs again overwhelmingly trumped new lows on both exchanges.

Euro Tanks As Dollar Rallies:

Overnight, Fitch Ratings downgraded Portugal due to its ballooning debt concerns. This, coupled with the fact that France and Germany are close to reaching a deal with the IMF to rescue Greece sent the euro plunging. Investors are concerned that more European countries will need to be bailed out as they struggle to deal with their mounting debt. The euro fell against 12 of its 16 peers and hit a new 10-month low against the greenback. The US dollar rallied which put pressure on US stocks and commodities. The Reuters/Jefferies CRB Index of commodities slid to a five-week low, dragged lower by oil, gold, sugar, and copper.

Economic Data Mixed:

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