Valuations Are Still Attractive Even As The Market Melts Up
S&P 500’s P/E Ratio Is Still Below Prior Major Market Tops:
Apple’s Got a problem…iPad Killer from Lenovo. Lenovo’s amazing Tablet/PC Hybrid brings a tablet and a PC together in an amazingly elegant way. It’s a tablet. It’s a notebook computer. It’s the future…
July 4th Sale! Get 3 Months Free (~$300 Value) When You Join Or Upgrade Any Plan on FindLeadingStocks Earlier this week, I received an great question from a FindLeadingStocks member about how to to incorporate volume into buying/selling stocks? – Spurious Correlation: Short answer: I don’t. Here’s why: Volume tends to confuse most people because conventional wisdom tells you…
The S&P 500 is trading near its record high and is about to breakout from a short/bullish inverse head and shoulders bottom pattern. Keep in mind that from Feb’s low to Feb’s high, the $SPX has rallied a very impressive 7%, which is not an insignificant sum. In the old (non QE) days, a 10%…
Join Our Free Newsletter Source: https://twitter.com/BloombergNews/status/413842450789457920
The major averages advanced on Wednesday as the greenback slid to a 14-year low against the yen after the latest round of economic data was released. As expected, volume, a critical component of institutional demand, was lower than Tuesday’s levels ahead of the the Thanksgiving day holiday. The stock market will be closed on Thursday and is slated to close early on Friday (1pm EST) in oberservence of the holiday. Advancers led decliners by over a 2-to-1 ratio on the NYSE but trailed by a narrow margin on the Nasdaq exchange. There were 22high-ranked companies from the CANSLIM.net Leaders List making a new 52-week high and appearing on the CANSLIM.net BreakOuts Page, higher from the 12 issues that appeared on the prior session. In terms of new leadership, it was encouraging to see new 52-week highs outnumber new 52-week lows on the NYSE and Nasdaq exchange.
As of 2:45pm EST on Thursday, July 22, 2010 all the major averages are trading above their respective two month downward trendlines and their 50 DMA lines. However, it is a bit disconcerting to see volume recede as the market moves higher. This is the exact opposite of what one would like to see when the major averages rally above resistance. It is also important to note that the major averages are rallying up to an area where they encountered resistance several times in recent weeks and they are still below their longer term 200 DMA lines. That said, we can not argue with the tape and the bulls deserve the bullish benefit of the doubt until this “breakout” is negated. Trade accordingly.