Tuesday, March 30, 2010
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:
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 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.
Overseas Economic Data Hurts Stocks:
Overseas, Standard & Poor’s cut Iceland’s currency’s credit rating as the small nation continues to make its way out of the worst economic crisis in several generations. In Europe, it was a bit disconcerting to see Greece only sell half the 12-year bonds needed to raise additional funds.
Market Action- Confirmed Rally:
The fact that there have only been three 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.
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