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.

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 $250,000 and you would like a free portfolio review, 
Click Here to get connected with one of our portfolio managers. ** Serious inquires only, please.

If you enjoyed this post, make sure you subscribe to my RSS feed!
1 reply

Trackbacks & Pingbacks

  1. […] This post was mentioned on Twitter by Adam Sarhan. Adam Sarhan said: Stocks Jump After Greek Bailout http://bit.ly/cEbm9O #trading #investing #cnbc #wsj #barrons #bloomberg #finance #economy #eu #dollar #gold […]

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *