Stocks Edge Higher As Dollar Falls

Monday, March 29, 2010
Market Commentary:

The US dollar fell which helped send a slew of dollar denominated assets higher on Monday. However, volume totals on the NYSE and on the Nasdaq exchange were reported lower compared to Friday’s totals while advancers led decliners by a healthy margin on both exchanges. There were 31 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 17 issues that appeared on the prior session. New 52-week highs outnumbered new lows on both exchanges yet again.

Domestic & Foregin Economic Data:

The government said consumer spending rose in February for a fifth consecutive month while personal income held steady. The Labor Department is slated to release February’s jobs report this Friday even though the stock market will be closed in observance of Good Friday. Many pundits believe that Friday’s jobs report will display the largest monthly increase in payrolls in nearly three years. Elsewhere, the European Union said business and consumer confidence rose which is another welcomed sign.

Dollar Down; Stocks & Commodities Up:

All this, helped send the US dollar lower which, in turn, sent a slew of stocks and commodities higher. Oil enjoyed its largest single day advance in 5 weeks. Crude oil for May delivery jumped nearly +3% to $82.18 a barrel in New York. Meanwhile, Copper rose nearly +4% and hit a fresh 11- week high of $3.5355 a pound. Gold and silver both advanced, also helped by a weaker dollar. 
Market Action: Confirmed Rally- Week 5
The fact that there have only been two distribution days since the follow-though-day (FTD) bodes well for this nascent rally. It is also a welcome sign to see the market continue to improve as investors digest the latest round of stronger than expected economic and earnings data. Remember that now that a new rally has been confirmed, the window is open to proactively be buying high quality breakouts meeting the investment system guidelines. Trade accordingly.
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