31 Aug
Daily Market Commentary

Volatile Month Finally Ends!

Wednesday, August 31, 2011
Stock Market Commentary:

Stocks were quiet on Wednesday as they continue to consolidate their very strong week-long +7% rally. The major averages are technically in a new confirmed rally which means probing the long side may be prudent, if/when high ranked stocks begin to trigger fresh technical buy signals. Even with the latest FTD, the major averages are still trading below several key technical levels which means this rally may fade if the bears show up and quell the bulls’ efforts.

ADP Jobs Report Does Not Disappoint:

Before Wednesday’s open, ADP, the country’s largest private payrolls company, said U.S. employers added +91,000 new jobs in August which barely missed the Street’s 100k estimate. The news bodes reasonably well for Friday’s much anticipated non farm payrolls report. The major averages ended in the red this month but enjoyed sharp gains in the final week of August. It is important to note that the market is simply bouncing on light volume towards their respective 50 and 200 DMA lines. It will be critical to see how stocks react when they get to that important inflection point.
Market Outlook- Confirmed Rally!
The major averages confirmed their latest rally attempt on Tuesday, August 23, 2011 which was the 11th day of their latest rally attempt. It is important to note that all major rallies in history began with a FTD however not every FTD leads to a new rally (i.e. several FTDs fail). In addition, it is important to note that the major averages still are under pressure as they are all trading below their longer and shorter term moving averages (50 and 200 DMA lines) and are all still negative year-to-date. Our longstanding clients/readers know, we like to filter out the noise and focus on what matters most: market action. This rally will fail if/when August’s lows are breached. Until then, the bulls deserve the benefit of the doubt. If you are looking for specific help navigating this market, please contact us for more information.
 

02 Mar
Daily Market Commentary

Stocks Quiet After ADP Report

Wednesday, March 02, 2011
Stock Market Commentary:

Stocks were relatively quiet on Wednesday after the ADP said U.S. employers added more jobs than expected last month. The current crisis in the Middle East remains in flux which is putting upward pressure on oil and gold and downward pressure on equities. The benchmark S&P 500 is up nearly 100% from its March 2009 low, and still about -16% off its all time high from October 2007. On average, market internals remain healthy as the major averages bounced after finding support near their respective 50 DMA lines in late February.

ADP Jobs Report Tops Estimates & Bernanke Continues Testifying:

Before Wednesday’s open, ADP, the country’s largest private payrolls firm, said U.S. employers added +217,000 new jobs in February which easily topped the revised +189,000 gain in January and February’s median estimate of +180,000. The Labor Department is scheduled to release February’s official jobs report before Friday’s open. Stocks opened higher but sold off after a television station in France said a Libyan airplane fired two missiles at a square in the town of Brega. This sent WTI crude higher (well over the psychologically important $100/barrel mark) and sent gold surging to a fresh all-time high.

Market Action- Rally Under Pressure; Week 27

It was encouraging to see the bulls show up and defend the major averages’ respective 50 DMA lines in November, January, and late February. From our point of view, the market remains in rally-mode until those levels are breached. The tech-heavy Nasdaq composite and small-cap Russell 2000 indexes continue to lead evidenced by their shallow correction and strong recovery. However, it is important to note that stocks were a bit extended in recent months and this pullback (back to the 50 DMA lines) is very healthy as it shakes out the weaker hands and restores the the longer term health of this bull market. If you are looking for specific high ranked ideas, please contact us for more information.

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06 Jan
Daily Market Commentary

Stocks End Mixed On Lackluster Economic Data

Wednesday, January 6, 2010
Market Commentary:

The major averages ended mixed after a private report from ADP showed employers cut more jobs than expected last month and several Federal Reserve officials said they are willing to entertain the notion of more stimulus measures in 2010. Volume, an important indicator of institutional sponsorship, was reported lower than Tuesday’s totals on the NYSE and about even on the Nasdaq exchange which indicated large institutions were not aggressively dumping stocks. Advancers led decliners on the NYSE, but decliners narrowly led advancers by a 5-to-4 ratio on the Nasdaq exchange. There were 57 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, slightly lower than the total of 58 issues that appeared on the prior session. New 52-week highs solidly outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.

ADP Jobs Data Disappoints:

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