Bulls Celebrate March '09 Bottom

Tuesday, March 9, 2010
Market Commentary:

The major averages ended higher on the one year anniversary of the 2009 bear-market low close for the benchmark S&P 500 index amid speculation the economy will continue to recover from the worst recession since WWII.  Volume, a critical gauge of institutional demand, was reported higher than the prior session on the Nasdaq exchange and on the NYSE. Advancers led decliners by a narrow margin on the NYSE and Nasdaq exchange. There were 62 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 76 issues that appeared on the prior session. New 52-week highs again overwhelmingly trumped new lows on both exchanges.

Market’s Enjoyed Best 12-Month Rally In 80 Yrs!

The benchmark S&P 500 is up a very impressive +69% since hitting a 12-year low of 666.79 last March. This has been the largest 12 month rally for the benchmark average since the Great Depression. Despite that impressive feat, the S&P 500 is still down -28% from its October 2007 high of 1,576. It is also important to note that the vast majority of stocks that helped the major averages enjoy strong gains last year were low ranked stocks that bounced from egregiously oversold levels (i.e. Citigroup went from $0.97 to $5.43).

Increasing Number Of Healthy Breakouts!

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1 Year Anniversary From The '09 Lows

Monday, March 8, 2010
Market Commentary:

The major averages traded between positive and negative territory as investors digested last week’s impressive move. Volume, a critical gauge of institutional demand, was reported lower than the prior session on the Nasdaq exchange and on the NYSE, offering a reassuring sign that institutional investors were not aggressively dumping stocks.  Advancers led decliners by over an 11-to-8 ratio on the NYSE and by nearly a 15-to-13 ratio on the Nasdaq exchange. There were 76 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, up from the 59 issues that appeared on the prior session. New 52-week highs again overwhelmingly trumped new lows on both exchanges while new lows were in the single digits.

Obama’s Road Trip:

A slew of drug companies tumbled after President Barack Obama gave what appeared to be a final push to overhaul our troubled health-care system.  Pfizer (PFE), the world’s largest drug manufacturer, UnitedHealth (UNH), the largest US health insurer by revenue, and a host of other companies fell after Obama began a series of road trips to the Philadelphia area today and St. Louis on March 10 to rally public support.

1-Year Anniversary From Bear Market Lows:

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Investors Digest A Flurry of Economic Data

Thursday, March 4, 2010
Market Commentary:

Stocks traded between positive and negative territory and closed higher as investors digested the latest round of economic data. Volume, a critical gauge of institutional demand, was reported lower than the prior session on the Nasdaq exchange and on the NYSE. Advancers led decliners by a 11-to-8 ratio on the NYSE and by a 16-to-11 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, lower than the 46 issues that appeared on the prior session. New 52-week highs still overwhelmingly trumped new lows on both exchanges.

Investors Digest A Slew of Economic Data:

At 8:30am EST, the Labor Department said weekly jobless claims slid by 29,000 to 469,000 which fell short of the Street’s estimate for 475,000. It was encouraging to see claims fall after rising for most of February. The four-week average, which helps smooth out the data, slid by -3,500 in the week to 470,750,which was close to late January’s reading. Investors are now waiting for Friday’s official non farm payrolls report to be released. Analysts believe that the US economy shed -50,000 jobs last month.

Factory Orders & Pending Home Sales:

Two important reports were released at 10am EST: factory orders and pending home sales. Factory orders matched estimates and rose a very solid +1.7% in January. Orders for non-durable goods grew by +0.9% and durable goods orders, already released, were revised lower but still grew by +2.6%. Elsewhere, the National Association of Realtors said pending home sales, plunged by -7.6% to 90.4. The NAR blamed poor weather as the primary culprit for the poor reading.

Market Action- Confirmed Rally:

Looking at the market, the latest rally attempt was confirmed when a “cautious follow-through day” was produced by the Nasdaq Composite Index’s +1.6% gain on Monday, March 1st. Weighing into the decision to label the day a follow-through-day (FTD) was the strong action in leading stocks along with a great expansion noted in the new highs list.  That action suggests that there is a healthy crop of strong stocks capable of fueling a substantial rally higher for the major averages.  We will be looking out for any near-term distribution days (high volume declines) which would hurt the chances for this nascent rally to continue. Until then, the bulls deserve the bullish benefit of the doubt as the major averages continue edging higher.
It is 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 start buying high quality breakouts. Trade accordingly.
Professional Money Management Services – A Winning System – Inquire today!
Our skilled team of portfolio managers follow the rules of this fact-based investment system without exception. We do not follow opinion trade based on what we think will happen. Instead, we trade on what actually “is” happening! We remain fluid in our approach and only buy the best stocks when they are triggering proper technical buy signals. If you are not completely satisfied with the way your portfolio is being managed, Click here to email one of our portfolio managers. *Accounts over $250,000 please.  ** Serious inquires only, please.

Healthy Economic Data Helps Stocks

Wednesday, March 3, 2010
Market Commentary:

The major averages ended mixed after the latest economic data showed improvement in the US job market and service industries. Volume, a critical gauge of institutional demand, was reported lower than the prior session on the Nasdaq exchange and on the NYSE. Advancers led decliners by a more than a 11-to-8 ratio on the NYSE and by a narrow margin on the Nasdaq exchange. New 52-week highs overwhelmingly trumped new lows on both exchanges which was another welcome sign while there were 46 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 76 issues that appeared on the prior session.

Healthy Economic Data Lifts Stocks:

Before Wednesday’s opening bell, ADP Employer Services said US employers only cut 20,000 jobs last month. This was the lowest reading in two years and bodes well for Friday’s official payrolls report. Elsewhere, the Institute for Supply Management (ISM) said its service index enjoyed the fastest growth rate since October 2007. The service index currently makes up over two thirds of the overall economy and a stronger reading is another healthy sign for the economy. Around 2pm EST, the Federal Reserve’s Beige Book was released which showed the economy continued to expand as 9 out of the 12 districts showed improvement. In Europe, Greece announced plans to cut its budget by an additional 4.8 billion euros ($6.6 billion) after European Union leaders called for deeper reductions before considering aid.

Market Action- Confirmed Rally:

Looking at the market, the latest rally attempt was confirmed when a “cautious follow-through day” was produced by the Nasdaq Composite on Monday, March 1. Since then, the major averages have gone virtually nowhere as investors await Friday’s jobs report. Weighing into the decision to label the day a follow-through-day (FTD) was the strong action in leading stocks along with a great expansion noted in the new highs list.  That action suggests that there is a healthy crop of strong stocks capable of fueling a substantial rally higher for the major averages.  We will be looking out for any near-term distribution days (high volume declines) which would hurt the chances for this nascent rally. Until then, the bulls deserve the bullish benefit of the doubt.
It is 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 start buying high quality breakouts. Trade accordingly.
Professional Money Management Services – Inquire today!
Our skilled team of portfolio managers follow the rules of this fact-based investment system without exception. We do not follow opinion trade based on what we think will happen. Instead, we trade on what actually “is” happening! We remain fluid in our approach and only buy the best stocks when they are triggering proper technical buy signals. If you are not completely satisfied with the way your portfolio is being managed, Click here to email one of our portfolio managers. *Accounts over $250,000 please.  ** Serious inquires only, please.

Cautious Follow-Through Day Confirms New Rally

Tuesday, March 2, 2010
Market Commentary:

The paper categorized Monday’s gain as a “cautious follow-through day” which confirmed the latest rally attempt. Stocks edged higher on Tuesday after India’s economy grew nicely last year and speculation spread that the European Union will bail out Greece. Volume, a critical gauge of institutional demand, was reported higher on both major exchanges compared to Monday’s levels. Advancers led decliners by a nearly a 3-to-1 ratio on the NYSE and by a 2-to-1 ratio on the Nasdaq exchange. New 52-week highs trumped new lows on both exchanges which was another welcome sign while there were 76 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, up from the 69 issues that appeared on the prior session.

India’s Economy Lifts Stocks:

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Day 16: Still Waiting For A Follow-Through Day

Monday, March 1, 2010
Market Commentary:

Stocks and the dollar rose after the latest round of M&A news was announced. Monday marked Day 16 of the current rally attempt but the market failed to produce a proper follow-through day because the gains fell short of the +1.7% guideline. Volume, a critical gauge of institutional demand, was reported mixed compared to Friday’s levels; higher on the Nasdaq and lower on the NYSE. Advancers led decliners by a nearly a 4-to-1 ratio on the NYSE and by nearly a 3-to-1 ratio on the Nasdaq exchange. New 52-week highs trumped new lows on both exchanges which was another welcomed sign.

Stocks Rally On Latest Economic Data:

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Day 15: Stocks Close Below Resistance

Friday, February 26, 2010
Market Commentary:

Stocks closed with modest gains on Friday which marked the 15th day of the current rally attempt. Volume, a critical gauge of institutional demand, was mixed compared to Thursday’s levels; higher on the Nasdaq exchange and lower on the NYSE. Advancers led decliners by a 12-to-17 ratio on the NYSE but trailed by 13-to-14 rato on the Nasdaq exchange. New 52-week highs outnumbered new lows on both exchanges.

Week In Review- Mon-Fri:

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Day 14: Stocks Close Below Resistance

Thursday, February 25, 2010
Market Commentary:

Stocks closed lower but off their intraday lows after the US dollar pulled back as concern eased over tepid economic data and the fate of the EU. Volume, a critical gauge of institutional demand, was higher than Wednesday’s totals which suggested large institutions were selling stocks. Decliners led advancers by a 10-to-9 ratio on the NYSE and by a 16-to-11 ratio on the Nasdaq exchange. New 52-week highs outnumbered new lows on both exchanges. There were 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, lower than the 14 issues that appeared on the prior session.

EU Fears & Tepid Economic Data Send Stocks Lower:

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Day 13: Stocks Rally On Lighter Volume

Wednesday, February 24, 2010
Market Commentary:

The major averages rallied on the 13th day of the current rally attempt however volume, a critical gauge of institutional demand, fell compared to Tuesday’s totals. The lighter volume behind today’s advance signals large institutions are not aggressively buying stocks. Advancers led decliners by nearly a 3-to-1 ratio on the NYSE and by nearly a 2-to-1 ratio on the Nasdaq exchange. New 52-week highs outnumbered new lows on both exchanges. There were 14 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.

Bernanke Testifies; Stocks Advance:

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Day 12: Stocks Fall On Heavy Volume

Tuesday, February 23, 2010
Market Commentary:

The major averages ended lower as volume totals exceeded Monday’s levels on the 12th day of the current rally attempt which suggests large institutions are selling stocks. Decliners led advancers by a 27-to-11 ratio on the NYSE and by a 2-to-1 ratio on the Nasdaq exchange. New 52-week highs outnumbered new lows on both exchanges. There were 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, lower than the 24 issues that appeared on the prior session.

Poor Economic Data Sends Stocks Lower: US Consumer Confidence & German IFO Index

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