Economic Data Weighs On Stocks

SPX Rallied Over 4 Percent in Jan

SPX Rallied Over 4 Percent in Jan

Tuesday, January 31, 2012
Stock Market Commentary:

Stocks and a slew of other risk assets were quit on the last trading day of the month as investors digested the latest round of economic and earnings data. From our point of view, the major averages confirmed their latest rally attempt on Tuesday 1.3.12 which was Day 9 of their current rally attempt. It was also encouraging to see the S&P 500 break above its downward trendline and its longer term 200 DMA line. Looking forward, the S&P 500 is doing its best to stay above its Q4 2011′s high (~1292) and now has its sights set on its 2011 high near 1370. In addition, the bulls remain in control as long as the benchmark S&P 500 trades above 1292 and then its 200 DMA line.

Weak End To Strong Month:

On Tuesday, stocks were quiet as investors digested the latest round of earnings and economic data. News on the economic front was less than stellar. The S&P/Case-Shiller index fell -1.3% in November which missed the Street’s estimate for a decline of -0.5%. Elsewhere, the Conference Board said consumer confidence unexpectedly declined in January, The index fell to 61.1, missing the Street’s estimate of 68. The Institute of Supply Management said its Chicago business barometer fell to its lowest level since August which is not ideal. Earnings continued to be released in droves with most companies meeting or slightly passing analysts estimates. After all was said and done, stocks and a slew of other risk assets (commodities and currencies) rallied in January, which bodes well for the global economy.

Market Outlook- New Rally Confirmed

Risk assets (stocks, FX, and commodities) have been acting better since the latter half of December. Now that the major U.S. averages scored a proper follow-through day the path of least resistance is higher. Looking forward, one can err on the long side as long as the benchmark S&P 500 remains above support (1292). Leadership is beginning to improve which is another healthy sign. Now that the 200 DMA line was taken out it will be important to see how long the market can stay above this important level. If you are looking for specific help navigating this market, feel free to contact us for more information. That’s what we are here for!

Stocks Pullback After Strong Start To 2012

SPX- Profit taking after strong start to 2012

SPX- Profit taking after strong start to 2012

Monday, January 30, 2012
Stock Market Commentary:

Stocks and a slew of other risk assets were lower on Monday as jitters spread regarding Greece and investors booked profits after a strong start to the year. From our point of view, the major averages confirmed their latest rally attempt on Tuesday 1.3.12 which was Day 9 of their current rally attempt. It was also encouraging to see the S&P 500 break above its downward trendline and its longer term 200 DMA line. Looking forward, the S&P 500 is doing its best to stay above its Q4 2011′s high (~1292) and now has its sights set on its 2011 high near 1370. In addition, the bulls remain in control as long as the benchmark S&P 500 trades above 1292 and then its 200 DMA line.

Spending & Income Don’t Help Stocks:

On Monday, stocks and a slew of other risk assets fell as the month of January draws to an end. So far, this has been a strong month for risk assets and a little profit taking should be expected after such a strong move. The idea going forward is to assess the “health” of the pullback and see if it is nothing more than a short lived pullback or the beginning of something more severe. The news on the economic front did little to help stocks. Personal income rose by +0.5% last month in the U.S. which topped the Street’s forecast for an increase of +0.4%. Meanwhile, spending was flat during the final month of the year which just missed the average estimate for an increase of +0.1%.

Market Outlook- New Rally Confirmed

Risk assets (stocks, FX, and commodities) have been acting better since the latter half of December. Now that the major U.S. averages scored a proper follow-through day the path of least resistance is higher. Looking forward, one can err on the long side as long as the benchmark S&P 500 remains above support (1292). Leadership is beginning to improve which is another healthy sign. Now that the 200 DMA line was taken out it will be important to see how long the market can stay above this important level. If you are looking for specific help navigating this market, feel free to contact us for more information. That’s what we are here for!
 

Strong Month For Stocks

Gold- Bullish Double Bottom Pattern Is Forming

Gold- Bullish Double Bottom Pattern Is Forming

Friday, January 27, 2012
Stock Market Commentary:

Stocks and a slew of other risk assets rallied in the final full trading week of the month as investors digested a slew of economic and earnings data. From our point of view, the major averages confirmed their latest rally attempt on Tuesday 1.3.12 which was Day 9 of their current rally attempt. It was also encouraging to see the S&P 500 break above its downward trendline and its longer term 200 DMA line. Looking forward, the S&P 500 is doing its best to stay above its Q4 2011′s high (~1292) and now has its sights set on its 2011 high near 1370. In addition, the bulls remain in control as long as the benchmark S&P 500 trades above 1292 and then its 200 DMA line.

Monday-Wednesday’s Action: Stocks Rally After State of the Union & Fed Meeting:

On Monday, stocks and slew of other risk assets opened higher as investors awaited a busy week of earnings and economic data. The euro rallied as finance ministers and other officials met in Europe to discuss the terms of the Greek restructuring deal which will be part of a second bailout package for Athens. The officials also discussed other important issues that are aimed to help quell the massive debt issues plaguing the continent.  Remember in addition to digesting the actual news it is extremely important to focus on how markets react to the news for signs of what the participants are actually thinking.
On Tuesday, markets opened lower as investors digested a slew of earnings news and another failed deal to save Greece. European leaders rejected proposals from private bondholders for a Greek “haircut” due to the size of the cut. Private bond holders argued for smaller cuts while EU leaders want larger cuts to prevent another default in March. Christine Lagarde, managing director of the IMF, told CNBC that the fund needs another $500B to help tackle the European debt crisis. Separately, the U.S. Federal reserve began its two-day meeting and after the close tech giants Apple (AAPL) and Yahoo (YHOO) released their latest quarterly results and President Obama delivered his State of the Union address. Other blue chips such as McDonald’s (MCD) and Verizon (VZ), released mixed Q4 results.
On Wednesday, stocks rallied as investors digested a slew of economic and earnings data. President Obama’s State of the Union address did little to move markets as he largely reiterated his recent stance on a slew of domestic and foreign issues. One of the highlights was when the President proposed large changes to the convoluted tax code. He proposed a minimum 30% effective rate on millionaires to eliminate inequalities in the tax current tax structure that favor wealthier citizens. In other news, pending home sales missed estimates which was not ideal. Weekly mortgage applications edged lower which is not ideal for the ailing housing market. The Federal Reserve held rates steady and said they will likely hold rates near zero until 2014 as the economy continues to recover. Many stocks that released earnings were mixed this week.

Thursday & Friday’s Action: Stocks Quiet After Strong Week:

On Thursday, stocks and a slew of risk assets opened higher but were quiet in the wake of the Federal Reserve’s latest meeting. The latest economic and earnings data was mixed to slightly positive which also helped stocks. Durable goods rose 3% which easily topped the Street’s estimate for a 2% gain. Meanwhile, the Labor Department said weekly jobless claims rose by 21,000 to 377,000 which topped the Street’s estimate for a gain of 370,000. Leading economic indicators rose to a 5-month high. However, new home sales unexpectedly fell -2.2% to a seasonally adjusted annual rate of 307,000, which was the first decline in 4 months and lower than the Street’s estimate. Before Friday’s open, the government said Q4 GDP grew by +2.8% which will be adjusted two more times before the end of March.

Market Outlook- New Rally Confirmed

Risk assets (stocks, FX, and commodities) have been acting better since the latter half of December. Now that the major U.S. averages scored a proper follow-through day the path of least resistance is higher. Looking forward, one can err on the long side as long as the benchmark S&P 500 remains above support (1292). Leadership is beginning to improve which is another healthy sign. Now that the 200 DMA line was taken out it will be important to see how long the market can stay above this important level. If you are looking for specific help navigating this market, feel free to contact us for more information. That’s what we are here for!

Investors Digest More Earnings & Economic Data

Gold Continues Forming A Bullish Double Bottom Pattern

Gold Continues Forming A Bullish Double Bottom Pattern

Thursday, January 26, 2012
Stock Market Commentary:

Stocks and a slew of other risk assets opened higher after the U.S. Federal Reserve made it clear that they are going to keep rates near zero until 2014. From our point of view, the major averages confirmed their latest rally attempt on Tuesday 1.3.12 which was Day 9 of their current rally attempt. It was also encouraging to see the S&P 500 break above its downward trendline and its longer term 200 DMA line. Looking forward, the S&P 500 is doing its best to stay above its Q4 2011’s high (~1292) and now has its sights set on its 2011 highs near 1370. In addition, the bulls remain in control as long as the benchmark S&P 500 trades above  1292 and then its 200 DMA line.

Easy Money, Earnings & Economic Data Helps Stocks:

On Thursday, stocks and a slew of risk assets opened higher but were quiet in the wake of the Federal Reserve’s latest meeting. The Fed made it clear that they are going to hold rates steady near zero until 2014 to help the global economy recover. The latest economic and earnings data was mixed to slightly positive which also helped stocks. Durable goods rose 3% which easily topped the Street’s estimate for a 2% gain. Meanwhile, the Labor Department said weekly jobless claims rose by 21,000 to 377,000 which topped the Street’s estimate for a gain of 370,000. Leading economic indicators rose to a 5-month high which bodes well for the economy. However, new home sales unexpectedly fell -2.2% to a seasonally adjusted annual rate of 307,000, which was the first decline in 4 months and lower than the Street’s estimate.
THURSDAY: Durable goods orders, jobless claims, new home sales, leading indicators, 7-yr note auction; Earnings from AT&T, Caterpillar, 3M, Nokia, AutoNation, Bristol-Myers, Time Warner Cable, Motorola Mobility, Starbucks
FRIDAY: GDP, consumer sentiment; Earnings from Chevron, P&G, DRHorton
Source CNBC.com:

Market Outlook- New Rally Confirmed

Risk assets (stocks, FX, and commodities) have been acting better since the latter half of December. Now that the major U.S. averages scored a proper follow-through day the path of least resistance is higher. Looking forward, one can err on the long side as long as the benchmark S&P 500 remains above support (1292). Leadership is beginning to improve which is another healthy sign. Now that the 200 DMA line was taken out it will be important to see how long the market can stay above this important level. If you are looking for specific help navigating this market, feel free to contact us for more information. That’s what we are here for!
 

Stocks Rally After Fed Meeting

SPX- Stocks Continue To Rally

SPX- Stocks Continue To Rally

Wednesday, January 25, 2012
Stock Market Commentary:

Stocks and a slew of other risk assets rallied after President Obama’s State of the Union Address Tuesday night, a slew of corporate earnings were announced, and the results of the latest Fed meeting. From our point of view, the major averages confirmed their latest rally attempt on Tuesday 1.3.12 which was Day 9 of their current rally attempt. It was also encouraging to see the S&P 500 break above its downward trendline and its longer term 200 DMA line. Looking forward, the S&P 500 is doing its best to stay above its Q4 2011’s high (~1292) and now has its sights set on its 2011 highs near 1370. In addition, the bulls remain in control as long as the benchmark S&P 500 trades above  1292 and then its 200 DMA line.

State of the Union, Fed Meeting, & A Slew of Earnings & Economic Data:

On Wednesday, stocks rallied as investors digested a slew of economic and earnings data. President Obama’s State of the Union address did little to move markets as he largely reiterated his recent stance on a slew of domestic and foreign issues. One of the highlights was that Obama proposed large changes to the convoluted tax code. He proposed a minimum 30% effective rate on millionaires to eliminate inequalities in the tax current tax structure that favor wealthier citizens. In other news, pending home sales missed estimates which was not ideal. Weekly mortgage applications edged lower which is not ideal for the ailing housing market. The Federal Reserve held rates steady and said they will likely hold rates near zero until 2014 as the economy continues to recover. Many stocks that released earnings were mixed this week.
WEDNESDAY: Weekly mortgage apps, FHFA house price index, pending home sales, oil inventories, FOMC meeting announcement, Bernanke press conference; Earnings from Boeing, ConocoPhillips, United Tech, Delta, Motorola Solutions, Amgen, Netflix, SanDisk, Symantec
THURSDAY: Durable goods orders, jobless claims, new home sales, leading indicators, 7-yr note auction; Earnings from AT&T, Caterpillar, 3M, Nokia, AutoNation, Bristol-Myers, Time Warner Cable, Motorola Mobility, Starbucks
FRIDAY: GDP, consumer sentiment; Earnings from Chevron, P&G, DRHorton
Source CNBC.com:

Market Outlook- New Rally Confirmed

Risk assets (stocks, FX, and commodities) have been acting better since the latter half of December. Now that the major U.S. averages scored a proper follow-through day the path of least resistance is higher. Looking forward, one can err on the long side as long as the benchmark S&P 500 remains above support (1292). Leadership is beginning to improve which is another healthy sign. Now that the 200 DMA line was taken out it will be important to see how long the market can stay above this important level. If you are looking for specific help navigating this market, feel free to contact us for more information. That’s what we are here for!

Greek Deal Falls Apart; Markets Fall

Gold Is Forming A Bullish Double Bottom Pattern

Gold Is Forming A Bullish Double Bottom Pattern

Tuesday, January 24, 2012
Stock Market Commentary:

Stocks and a slew of other risk assets fell after the latest deal to save Greece fell apart. From our point of view, the major averages confirmed their latest rally attempt on Tuesday 1.3.12 which was Day 9 of their current rally attempt. It was also encouraging to see the S&P 500 break above its downward trendline and its longer term 200 DMA line. Looking forward, the S&P 500 is doing its best to stay above its Q4 2011’s high (~1292) and now has its sights set on its 2011 highs near 1370. In addition, the bulls remain in control as long as the benchmark S&P 500 trades above  1292 and then its 200 DMA line.

Greece Deal Falls Apart

On Tuesday, markets opened lower as investors digested a slew of earnings news and another failed deal to save Greece. European leaders rejected proposals from private bondholders for a Greek “haircut” due to the size of the cut. Private bond holders argued for smaller cuts while EU leaders want larger cuts to prevent another default in March. Christine Lagarde, managing director of the IMF, told CNBC that the fund needs another $500B to help tackle the European debt crisis.
Separately, the U.S. Federal reserve began its two-day meeting and after the close tech giants Apple (AAPL) and Yahoo (YHOO) will release their latest quarterly results and Obama will deliver his State of the Union address. Other blue chips such as McDonald’s (MCD) and Verizon (VZ), among others released mixed results.
TUESDAY: 2-yr note auction, FOMC meeting begins, Obama’s State of the Union address; Earnings from DuPont, J&J, McDonald’s Travelers, Verizon, Apple, Yahoo
WEDNESDAY: Weekly mortgage apps, FHFA house price index, pending home sales, oil inventories, FOMC meeting announcement, Bernanke press conference; Earnings from Boeing, ConocoPhillips, United Tech, Delta, Motorola Solutions, Amgen, Netflix, SanDisk, Symantec
THURSDAY: Durable goods orders, jobless claims, new home sales, leading indicators, 7-yr note auction; Earnings from AT&T, Caterpillar, 3M, Nokia, AutoNation, Bristol-Myers, Time Warner Cable, Motorola Mobility, Starbucks
FRIDAY: GDP, consumer sentiment; Earnings from Chevron, P&G, DRHorton
Source CNBC.com:

Market Outlook- New Rally Confirmed

Risk assets (stocks, FX, and commodities) have been acting better since the latter half of December. Now that the major U.S. averages scored a proper follow-through day the path of least resistance is higher. Looking forward, one can err on the long side as long as the benchmark S&P 500 remains above support (1292). Leadership is beginning to improve which is another healthy sign. Now that the 200 DMA line was taken out it will be important to see how long the market can stay above this important level. If you are looking for specific help navigating this market, feel free to contact us for more information. That’s what we are here for!
 

Risk Assets Edge Higher

SPX- Will Resistance Become Support?

SPX- Will Resistance Become Support?

Monday, January 23, 2012
Stock Market Commentary:

Stocks and a slew of other risk assets opened higher after a strong start to 2012. From our point of view, the major averages confirmed their latest rally attempt on Tuesday 1.3.12 which was Day 9 of their current rally attempt. It was also encouraging to see the S&P 500 break above its downward trendline and its longer term 200 DMA line. Looking forward, the market is doing its best to make its way above Q4 2011’s high (~1292) and now has its sights set on its 2011 highs near 1370. In addition, the bulls remain in control as long as the benchmark S&P 500 trades above  its 200 DMA line.

Euro Continues To Rally & Lifts Other Risk Assets

On Monday, stocks and slew of other risk assets opened higher as investors awaited a busy week of earnings and economic data. The euro rallied as finance ministers and other officials met in Europe to discuss the terms of the Greek restructuring deal which will be part of a second bailout package for Athens. The officials also discussed other important issues that are aimed to help quell the massive debt issues plaguing the continent.  Remember in addition to digesting the actual news it is extremely important to focus on how markets react to the news for signs of what the participants are actually thinking. Here’s what’s on tap for the rest of the week:
MONDAY: Earnings from CSX, Texas Instruments
TUESDAY: 2-yr note auction, FOMC meeting begins, Obama’s State of the Union address; Earnings from DuPont, J&J, McDonald’s Travelers, Verizon, Apple, Yahoo
WEDNESDAY: Weekly mortgage apps, FHFA house price index, pending home sales, oil inventories, FOMC meeting announcement, Bernanke press conference; Earnings from Boeing, ConocoPhillips, United Tech, Delta, Motorola Solutions, Amgen, Netflix, SanDisk, Symantec
THURSDAY: Durable goods orders, jobless claims, new home sales, leading indicators, 7-yr note auction; Earnings from AT&T, Caterpillar, 3M, Nokia, AutoNation, Bristol-Myers, Time Warner Cable, Motorola Mobility, Starbucks
FRIDAY: GDP, consumer sentiment; Earnings from Chevron, P&G, DRHorton
Source CNBC.com:

Market Outlook- New Rally Confirmed

Risk assets (stocks, FX, and commodities) have been acting better since the latter half of December. Now that the major U.S. averages scored a proper follow-through day the path of least resistance is higher. Looking forward, one can err on the long side as long as the benchmark S&P 500 remains above support (1292). Leadership is beginning to improve which is another healthy sign. Now that the 200 DMA line was taken out it will be important to see how long the market can stay above this important level. If you are looking for specific help navigating this market, feel free to contact us for more information. That’s what we are here for!
 

3rd Consecutive Weekly Gain On Wall Street

NDX Hit A 12 Year High!

NDX Hit A 12 Year High!

Friday, January 20, 2012
Stock Market Commentary:

Stocks and a slew of other risk assets rallied for the third consecutive week and are on track to end higher for the month. From our point of view, the major averages confirmed their latest rally attempt on Tuesday 1.3.12 which was Day 9 of their current rally attempt. It was also encouraging to see the S&P 500 break above its downward trendline and its longer term 200 DMA line. Looking forward, the market is doing its best to make its way above Q4 2011’s high (~1292) and now has its sights set on its 2011 highs near 1370. In addition, the bulls remain in control as long as the benchmark S&P 500 trades above  its 200 DMA line.

Monday-Wednesday’s Action: Euro Rallies and lifts other risk assets

On Monday, U.S. markets were closed in observance of Martin Luther King’s birthday. China said its economy grew at its weakest pace in 2-1/2 years as exports waned and their housing and stock markets continue to fall. China’s economy remains strong on a relative basis and rose 8.9% in Q4 which topped the 8.7% forecast. On Tuesday, stocks opened after Spain’s debt auction topped estimates and the latest round of Q4 earnings were mixed. Citigroup (C) missed numbers while Wells Fargo (WFC) beat the Street’s estimates.
On Wednesday, stocks were relatively quiet after rumors spread that the IMF was working on a last minute plan to bailout the euro. Corporate data in the U.S. was mixed to slightly higher. Goldman Sachs (GS) was one of the many companies to release earnings on Wednesday. The investment bank topped estimates but saw earnings and sales contract compared to the same levels in the prior year (2010). Meanwhile, the Labor Department said the producer price index unexpectedly fell by -0.1% which missed the Street’s expectation for a gain of +0.1%.

Thursday & Friday’s Action: Euro Rallies, Earnings & Economic Data Help Stocks

On Thursday, stocks and a host of other risk assets rallied after the Euro continued its week-long charge higher and investors digested the latest round of economic and earnings data. Before Thursday’s open, Bank of America (BAC) met estimates while investment bank Morgan Stanley (MS) missed. However, both stocks opened higher which helped the rest of the market rally. Another beaten down sector of 2011 that has been on a tear of late is the housing stocks. Due to the recent action in housing stocks we are of the belief that a significant low may be developing.
The news on the economic front was mostly positive. Weekly jobless claims plunged last week which bodes well for the broader economy and the ailing jobs market. The Labor Department said weekly jobless claims tanked by 50,000 to 352,000 which was the lowest reading since April 2008. Moreover, the four-week average, which is used to give smoother readings, plunged to 379,000 which is the second-lowest reading in more than 3 years. The Commerce Department said housing starts slid -4.1% to a seasonally adjusted annual rate of 657,000 units. Finally, the consumer price index (CPI) was unchanged last month which helped allay inflation woes. This was the second consecutive monthly decline for the headline number while core prices (which exclude food and energy) edged up +0.1%. Stocks were relatively quiet on Friday as investors digested a slew of high profile earnings reports (GOOG, GE, IBM, INTC, etc).

Market Outlook- New Rally Confirmed

Risk assets (stocks, FX, and commodities) have been acting better since the latter half of December. Now that the major U.S. averages scored a proper follow-through day the path of least resistance is higher. Looking forward, one can err on the long side as long as the benchmark S&P 500 remains above support (1260). Leadership is beginning to improve which is another healthy sign. Now that the 200 DMA line was taken out it will be important to see how long the market can stay above this important level. If you are looking for specific help navigating this market, feel free to contact us for more information. That’s what we are here for!
 

Earnings & Economic Data Help Stocks

Will the SPX Stay Above Resistance

Will the SPX Stay Above Resistance

Thursday, January 19, 2012
Stock Market Commentary:

Stocks and a slew of other risk assets rallied on Thursday, led higher but stronger than expected economic and earnings data. From our point of view, the major averages confirmed their latest rally attempt on Tuesday 1.3.12 which was Day 9 of their current rally attempt. It was also encouraging to see the S&P 500 break above its downward trendline and its longer term 200 DMA line. Looking forward, the market is doing its best to make its way above Q4 2011’s high (~1292) and now has its sights set on its 2011 highs near 1370. In addition, the bulls remain in control as long as the benchmark S&P 500 trades above  its 200 DMA line.

Euro Rallies, Earnings & Economic Data Help Stocks

On Thursday, stocks and a host of other risk assets rallied after the Euro continued its week-long charge higher and investors digested the latest round of economic and earnings data. Before Thursday’s open, Bank of America (BAC) met estimates while investment bank Morgan Stanley (MS) missed. However, both stocks opened higher which helped the rest of the market rally. Another beaten down sector of 2011 that has been on a tear of late is the housing stocks. Due to the recent action in housing stocks we are of the belief that a significant low may be developing.
The news on the economic front was mostly positive. Weekly jobless claims plunged last week which bodes well for the broader economy and the ailing jobs market. The Labor Department said weekly jobless claims tanked by 50,000 to 352,000 which was the lowest reading since April 2008. Moreover, the four-week average, which is used to give smoother readings, plunged to 379,000 which is the second-lowest reading in more than 3 years. The Commerce Department said housing starts slid -4.1% to a seasonally adjusted annual rate of 657,000 units. Finally, the consumer price index (CPI) was unchanged last month which helped allay inflation woes. This was the second consecutive monthly decline for the headline number while core prices (which exclude food and energy) edged up +0.1%.

Market Outlook- New Rally Confirmed

Risk assets (stocks, FX, and commodities) have been acting better since the latter half of December. Now that the major U.S. averages scored a proper follow-through day the path of least resistance is higher. Looking forward, one can err on the long side as long as the benchmark S&P 500 remains above support (1260). Leadership is beginning to improve which is another healthy sign. Now that the 200 DMA line was taken out it will be important to see how long the market can stay above this important level. If you are looking for specific help navigating this market, feel free to contact us for more information. That’s what we are here for!

Quiet Day On Wall Street

SPX- Stays Above Resistance-

SPX- Stays Above Resistance-

Wednesday, January 18, 2012
Stock Market Commentary:

Stocks and a slew of other risk assets were relatively quiet on Wednesday after IMF was rumored to be working on a plan to bailout the euro and the U.S. producer price index (PPI) did not indicate inflation was a threat at this point. From our point of view, the major averages confirmed their latest rally attempt on Tuesday 1.3.12 which was Day 9 of their current rally attempt. It was also encouraging to see the S&P 500 break above its downward trendline and its longer term 200 DMA line (shown above). Looking forward, the market is doing its best to make its way above Q4 2011’s high (~1292) and now has its sights set on its 2011 highs near 1370. In addition, the bulls remain in control as long as the benchmark S&P 500 trades above  its 200 DMA line.

IMF Bailing Out The Euro? Corporate Earnings Mixed, & Inflation Remains Tame

On Wednesday, stocks were relatively quiet after rumors spread that the IMF was working on a last minute plan to bailout the euro. Corporate data in the U.S. was mixed to slightly higher. Goldman Sachs (GS) was one of the many companies to release earnings on Wednesday. The investment bank topped estimates but saw earnings and sales contract compared to the same levels in the prior year (2010). Meanwhile, the Labor Department said the producer price index unexpectedly fell by -0.1% which missed the Street’s expectation for a gain of +0.1%.

Market Outlook- New Rally Confirmed

Risk assets (stocks, FX, and commodities) have been acting better since the latter half of December. Now that the major U.S. averages scored a proper follow-through day the path of least resistance is higher. Looking forward, one can err on the long side as long as the benchmark S&P 500 remains above support (1260). Leadership is beginning to improve which is another healthy sign. Now that the 200 DMA line was taken out it will be important to see how long the market can stay above this important level. If you are looking for specific help navigating this market, feel free to contact us for more information. That’s what we are here for!