Week-In-Review: Stocks End Busy Week Higher

Byinfo@50park.com

Stocks End Busy Week Higher

Stocks ended the week higher and the Dow and S&P 500 turned positive for the month. The Nasdaq and Nasdaq 100 are still slightly lower for the month but are on track to turn higher. Remember, what I said last week, it would be perfectly normal to see the market open lower for the month and end higher. In fact, that is a very bullish sign and exactly how healthy markets behave. As 2017 winds down, the market remains exceptionally strong and weakness continues to get bought. Until we see any significant selling show up and last more than a few days, the market deserves the bullish benefit of the doubt.

Mon-Wed Action:

Stocks ended mixed to mostly lower on Monday on the first full trading day after the Senate managed to narrowly pass a bill to reform the tax system on Saturday. Around 2am EST, Senate Republicans managed to win the final vote by a 51-49 margin, after Republicans had to rework the bill late on Thursday and Friday. When futures opened for trading late Sunday night, Dow futures were up over 200 points which lasted into Monday’s open. Shortly after the open, the Dow surged nearly 300 points but sellers showed up and the Dow only closed up 58 points. Meanwhile, the rest of the market closed lower as tech stocks weighed on the market. On Tuesday, stocks ended mostly lower causing the S&P 500 to have its first 3-day losing streak since August. On Wednesday, stocks were quiet as the Nasdaq bounced and the Dow & S&P 500 were little changed.

Thur & Fri Action:

Stocks edged higher on Thursday after the House passed a bill to help avoid a government shutdown. Elsewhere, it was encouraging to see Lululemon ($LULU) gap up after the retailer reported earnings. For the past 18-24 months, retail stocks have been under pressure and now are slowly turning the corner. Wal-Mart ($WMT) gapped up a few weeks ago and hit a new record high after reporting earnings. Stocks rallied nicely on Friday after the government released a strong jobs report. Last month, U.S. employers added 228k new jobs, beating estimates for a gain of 190k.

Market Outlook: Bulls Are Strong

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

  • Gains On Lighter Volume Reveal Lackluster Buying Demand

    Byinfo@50park.com

    The major averages rallied on Wednesday, sending the benchmark S&P 500 Index to a fresh 2009 high on positive economic and political data. However, volume, a critical component of institutional demand, was reported lower on both major exchanges. That signaled that large institutions were not aggressively buying stocks.

  • 15-Week Rally Continues!

    Byinfo@50park.com

    Market Action- Market In Confirmed Rally Week 15
    It is encouraging to see the bulls show up and defend the 50 DMA lines for the major averages. 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. Put simply, stocks are strong. Trade accordingly. If you are looking for specific high ranked ideas, please contact us for more information.

  • Russell 2000 Hits Fresh Record High!

    Byinfo@50park.com

    Market Action-Confirmed Uptrend
    The market is back in a confirmed uptrend after a modest (and healthy) -6% correction from its post-recovery highs. We find it very bullish to see the mid cap S&P 400 index hit a fresh all time high and the small cap Russell 2000 index flirt with its all time high. in addition, the Dow Jones Industrial Average vaulted to a fresh post-recovery high and the S&P 500 and Nasdaq composite are just shy of fresh 2011 highs! Finally, we are very happy to see a slew of high ranked stocks trigger fresh technical buy signals in recent weeks which suggests higher, not lower prices lie ahead. If you are looking for specific help navigating this market, please contact us for more information.

  • Day 3 Of A New Rally Attempt

    Byinfo@50park.com

    Looking at the market, Wednesday marked Day 3 of a new rally attempt which means that as long as Monday’s lows are not breached, the earliest a possible follow-through day could emerge will be Thursday. However, if Monday’s lows are taken out, then the day count will be reset and the chances for a steeper correction increase markedly. It is also important to see how the major averages react to their respective 50-day moving average (DMA) lines. Until they all close above that important level the technical damage remaining on the charts is a concern. So far, the market’s reaction has been tepid at best to the latest round of economic and earnings data. Remember that the recent series of distribution days coupled with the deleterious action in the major averages suggests large institutions are aggressively selling stocks. Disciplined investors will now wait for a new follow-through day to be produced before resuming any buying efforts. Until then, patience is key.

Leave a Reply

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