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Quiet Day On Wall Street

Thursday, February 17, 2011
Stock Market Commentary:

Stocks were quiet on Thursday after jobless claims rose more than expected last week and the consumer price index (CPI), which is used to measure inflation, continued to rise last month. The benchmark S&P 500 is up 100% from its March 2009 low, and still about -14% off its all time high from October 2007. On average, market internals remain healthy as the major averages continue marching higher. The fact that the major averages bounced back sharply after a very brief pullback in January illustrates how strong this 25-week rally actually is.

Jobless Claims, Inflation, Leading Indicators, & Philly Fed Survey Are Released:

Before Wednesday’s open, the Labor Department said initial jobless claims rose by 25,000 to 410,000 last week which topped the Street’s estimate for a gain of 17,000. The Labor Department also released the seasonally adjusted consumer price index which rose by +0.4% last month from December. On a year-over-year basis, prices swelled 1.6% before seasonal adjustments compared to the same period in 2010. However, core inflation, which removes food and energy prices and is considered the Fed’s preferred measure of inflation, increased by +0.2%. The report also showed that the annual underlying inflation rate stood at 1.0% in January which is still under the Fed’s target for 2.0%. At 10AM EST, leading economic indicators showed the economy continued to grow and the Philly Fed survey surged to 35.9, easily topping expectations.

Market Action- Confirmed Rally; Week 25

It was encouraging to see the bulls show up and defend the major averages’ respective 50 DMA lines in November as this market proves resilient and simply refuses to go down. From our point of view, the market remains in a confirmed rally 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 are a bit extended here and a pullback of some sort (back to the 50 DMA lines) would do wonders to restore the health of this bull market. If you are looking for specific high ranked ideas, please contact us for more information.

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Economic Data: Retail Sales, CPI

Airtime: Fri. Aug. 13 2010 | 8:30 AM ET

Parsing today’s economic data with John Brady, of MF Global, and CNBC’s Rick Santelli.

Stocks Edge Higher After Retesting 200 DMA Line

Thursday, June 17, 2010
Stock Market Commentary:

The major averages ended slightly higher as investors digested a slew of economic data and BP’s (BP) CEO spent the day testifying on Capital Hill. Volume totals were reported lower on both major exchanges, which signaled that large institutions were not aggressively selling stocks. Advancers were about even with decliners on the NYSE and on the Nasdaq exchange as the major averages continued consolidating Tuesday’s large move. There were 22 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 35 issues that appeared on the prior session.  New 52-week highs outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.

Investors Digest A Slew of Economic Data: Jobless Claims, CPI, & Leading Indicators:

Before Thursday’s opening bell, the Labor Department said US jobless claims rose to 472,000 last week and the consumer price index slid which helped allay inflation woes. After the bell, the Federal Reserve Bank of Philadelphia’s general economic index fell to a 10-month low of 8, less than half the median estimate of Wall Street economists. The Conference Board’s index of leading indicators in April edged down -0.1%, following a +1.3% increase in the prior month.

Stock Market Action- Confirmed Rally: Read more

Investors Digest A Slew Of Economic Data

Thursday, March 18, 2010
Market Commentary:

The major averages traded between positive and negative territory for most of the day after the dollar rose and investors digested a slew of economic data. Volume totals were reported lower on the Nasdaq exchange and on the NYSE compared to the prior session. Decliners led advancers by more than a 22-to-15 ratio on the NYSE and by a 5-to-4 ratio on the Nasdaq exchange. 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, lower than the 77 issues that appeared on the prior session. New 52-week highs again overwhelmingly trumped new lows on both exchanges.

Fed: To Raise, or Not To Raise, That Is The Question:

The dollar rallied after speculation increased that the Federal Reserve will raise its discount rate in the near future. The discount rate is the rate the Fed uses to charge banks for direct loans and was last raised after the market closed on Feb. 18, 2010. The Fed raised its discount rate by a quarter percentage point to +0.75% and said the move would encourage banks to rely more on money markets for short-term liquidity needs which would help stimulate the financial system.

Investors Digest A Slew of Economic Data: Read more

Earnings Season Begins Stocks; Stocks Fall

Friday, January 15, 2010
Market Commentary:

It was disconcerting to see all the major averages negatively reverse on heavier volume than the previous week as investors digested a slew of economic and earnings related data. The heavier volume reversal for the major averages suggests that large institutions were aggressively selling, not buying, stocks. However, it was encouraging to see new 52-week highs still solidly outnumber new 52-week lows on the NYSE and on the Nasdaq exchange which is a welcomed sign.

Monday & Tuesday:

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