Week-In-Review: Stocks Quiet Ahead Of The Hurricane

Byinfo@50park.com

Stocks Quiet Ahead Of The Hurricane

The stock market remains very strong. The major indices slid last week but were quiet as the country waits for Hurricane Irma to hit Florida. and parts of the East Coast. Stepping back, the action remains healthy as the market continues to trade just below record highs and sellers remain at bay. From where I sit, the market action remains bullish. The fact that the market refuses to fall in any significant fashion illustrates how strong the bulls are right now. Additionally, it is bullish to see volume dry up as the Dow, S&P 500 and Nasdaq sit on their respective 50 day moving average lines. It is important to note that the Transports and the small-cap Russell 2000 continue to under-perform their peers which is not ideal. Stepping back, until we see any heavy volume selling, the bulls remain in clear control.

Mon-Wed Action:

Stocks were closed on Monday in observance of the Labor Day Holiday. Stocks fell hard on Tuesday tensions spread regarding North Korea firing another missile. In the U.S., Factory Orders fell -3.3%, missing estimates for a decline of -3.2%. Stocks bounced back on Wednesday after the bulls showed up and defended the 50 DMA line for the Dow and S&P 500. Politically, two top Democratic leaders said they would support President Trump’s debt ceiling extension and government funding plan. Separately, Federal Reserve Vice Chair Stanley Fischer resigned due to personal reasons. Economic data was mixed. The PMI services index came in at 56, missing estimates for 56.9. Separately, the ISM non-manufacturing index came in at 55.3, missing estimates for 55.8. The Fed’s Beige Book came out and showed Modest to moderate economic growth and offered a different assessment on the impact of Hurricane Harvey. Finally, the market shifted its focus to Hurricane Irma. Sir Richard Branson survived the Hurricane holed up in his concrete wine cellar.

Thur & Fri Action:

Stocks were relatively quiet on Thursday and Friday as millions of people left Florida ahead of Hurricane Irma. The price of Bitcoin plunged after China’s Central Bank may shut down the exchanges. Shares of Target fell after the retail giant said it will slash prices on a lot of items in an attempt to attract shoppers. Shares of Equifax (EFX) plunged over 13% on Friday after the company had a massive data breach which could impact 140 million people.

Market Outlook: Bulls Are Back In Control

The bulls are back in control and the market remains very strong. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…

Similar Posts

  • Stock Market Week & Month In Review: Stocks Surge In February

    Byinfo@50park.com

    Looking For Leading Stocks? Try FindLeadingStocks.com? (For Under $3/Day Why Wouldn’t You Give It A Try?) STOCK MARKET COMMENTARY: FRIDAY, FEBRUARY 28, 2014 The benchmark S&P 500 (SPX) jumped to a fresh record high on Friday and broke out of an inverse Head & Shoulders continuation pattern (shown above). This is very healthy action considering…

  • Stocks Rally On New Bank Rules

    Byinfo@50park.com

    Monday’s action was a strong sign for the market rally that began on the September 1, 2010 follow-through day (FTD). Looking forward, the window is now open for disciplined investors to begin carefully buying high-ranked stocks again. It was encouraging to see a flurry of high-ranked leaders trigger fresh technical buy signals and break out of sound bases in recent sessions. The next important level to watch for the major averages are their respective 200-day moving average (DMA) lines. It is important to note that approximately 75% of FTDs lead to new sustained rallies, while 25% fail. In addition, every major rally in market history has begun with a FTD, but not every FTD leads to a new rally. Trade accordingly.

  • Rally Ends; Stocks Smacked

    Byinfo@50park.com

    Market Outlook- Market In A Correction:
    The market is back in a correction after another failed follow-through day on Tuesday, June 21, 2011. Now that we are back in a correction, defense remains the best offense. The next level of support for the major averages are their respective 200 DMA lines and then their March lows. The next level of resistance for the major averages is their respective 50 DMA lines. Trade accordingly.
    For those of you that are interested, the S&P 500 hit a new 2011 high on May 2, 2011. Two days later, on Wednesday, May 4, 2011, we turned cautious and said “The Rally Was Under Pressure” (read here). Then on Monday, 5.23.11, we changed our outlook to “Market In A Correction” (read here). On Monday, June 6, 2011 we pointed out that the S&P 500 violated its 9-month upward trendline (read here) and reiterated our cautious stance. On June 21, 2011 we changed our Market Outlook to a “Confirmed Rally” after the latest FTD was produced. Two days later, on Thursday, June 23, 2011, our outlook changed to “Market In A Correction” after the market sold off hard on renewed economic woes. If you are looking for specific help navigating this market, please contact us for more information.
    Stock Market Research?
    Global Macro Research?
    Want To Follow Trends?
    Learn How We Can Help You!

Leave a Reply

Your email address will not be published. Required fields are marked *