Stocks & Commodities Smacked As EU Debt Woes Continue

Tuesday, November 16, 2010
Stock Market Commentary:

Stocks and commodities got smacked as the euro plunged to a fresh multi-month low and the USD continued marching higher. The 12-week rally is currently under pressure evidenced by the ominous number of distribution days that have emerged in recent weeks coupled with the sloppy action we have outlined several times in this column.

EU Debt Woes Continue To Weigh On Markets:

The “big” story that continues to weigh on the market is the ongoing geopolitical woes in Europe. On Tuesday, Ireland’s government held an emergency meeting to discuss the possibility of a bailout. In other news, Austria said it did not want to contribute to Greece’s bailout because they did not satisfy several conditions of their prior bailout. In the US, the producer price index (PPI) came in less than expected which allayed inflation woes but sparked concerns about deflation. The consumer price index (CPI) is slated to be released before Wednesday’s open.

Market Action- Confirmed Rally, Week 12:

Heretofore, the action since this rally was confirmed on the September 1, 2010 follow-through day (FTD) has been strong but the market action has been wide-and-loose which is not a healthy sign and has caused the major averages to all pullback to their respective 50 DMA lines. This is the next important level of support for the major averages and several leading stocks. It is of the utmost importance for the bulls to show up and defend the 50 DMA line in order for this rally to remain intact. Caution and patience is key at this point. Trade accordingly.

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Written by

Adam Sarhan is the founder and CEO of Sarhan Capital -an investment and advisory firm. Parent to: FindLeadingStocks.com, AnalyzeWallStreet.com, MarketValor.com & SarhanCapital.com

No Comments to “Stocks & Commodities Smacked As EU Debt Woes Continue”

  1. [...] we said that in our commentary on November 16, 2010 when the outside source said the rally ended -Full Story here. However, we changed it to be inline with them but that was clearly a mistake. If anyone has any [...]

  2. [...] we said that in our commentary on November 16, 2010 when the outside source said the rally ended -Full Story here. However, we changed it to be inline with them but that was clearly a mistake. If anyone has any [...]

  3. [...] we said that in our commentary on November 16, 2010 when the outside source said the rally ended -Full Story here. However, we changed it to be inline with them but that was clearly a mistake. If anyone has any [...]

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