Dow & S&P 500 Enjoy Best Close of 2009!

Dow & S&P 500 Enjoy Best Close of 2009!

Byinfo@50park.com

Looking at the recent action in the market, the Dow Jones Industrial Average and benchmark S&P 500 index enjoyed their best close of the year as they continue flirting with important resistance levels (10,500 and 1,115 respectively.). The major averages continue acting well as they remain perched just below resistance (their respective 2009 highs) and above their respective 50-day moving average lines. Both these factors are considered healthy and bodes well for this 8-month (41-week) rally. It was also encouraging to see the Nasdaq close above 2,200 which has served as formidable resistance over the past few months. A slew of economic data is slated to be released this week and, as always, it will be very important to see how the market reacts to that news.

Week In Review- Stocks End Mixed

Week In Review- Stocks End Mixed

Byinfo@50park.com

Looking at the recent action in the market, the major averages continue acting well as they remain perched just below resistance (their respective 2009 highs) and above their respective 50-day moving average (DMA) lines. Both these factors are considered healthy and bodes well for this 8-month rally. The Nasdaq continues to experience formidable resistance just above 2,200 while the benchmark S&P 500 Index faces resistance just above 1,115. The blue chip Dow Jones Industrial Average remains the strongest of it peers and currently faces resistance just above 10,500. Until the major averages close above or below support or resistance, expect the bracketed (sideways) action to continue.

An Evening With The Kennedys

An Evening With The Kennedys

Byinfo@50park.com

Katie Couric spent nearly ninety minutes interviewing Vicki Kennedy and son Ted Kennedy Jr. in what appeared to be a sold out auditorium. Vicki and Ted Jr. spoke about the late Senator and reflected on his personal as well as public life and legacy. Sen Kennedy represented Massachusetts in the United States Senate for forty-seven years, and has been called the greatest and most influential senator in history. In 2004 he began interviews at the Miller Center of the University of Virginia for an oral history project about his life. Drawing from fifty years of contemporaneous notes from his personal diaries, he wrote his best-selling memoir, True Compass, a New York Times bestseller.

Late Dollar Decline Lifts Stocks

Late Dollar Decline Lifts Stocks

Byinfo@50park.com

Around 2pm EST the greenback started to fall and U.S. stocks started to rally. Apple Inc. (AAPL) vaulted +$7.66, or +4.18%, and closed above its 50 DMA line on above average volume. Apple has been a strong leader since the March lows and the fact that it quickly repaired the damage is a bullish sign for this rally. A new crop of high ranked stocks are currently working on new bases (Read:10 Stocks on My Watchlist 12.09.09) as the major averages continue consolidating their recent gains above their respective 50 DMA lines. It was encouraging to see the benchmark S&P 500 bounce off support (shown above) for the fourth time in the past few weeks. To be clear, the bulls deserve the bullish benefit of the doubt until the major averages close below their respective 50 DMA lines. At this point, they are acting well and appear to want to move higher.

Stocks Fall On Negative Economic Data

Stocks Fall On Negative Economic Data

Byinfo@50park.com

The market remains resilient as it simply refuses to go down. Longstanding readers of this column know that we prefer to focus more on how the market reacts to the news than the news itself. That said, the bears had all the possible ammunition to send stocks plunging on Tuesday and the fact that they did not (or could not), speaks volumes. In addition, the market remains strong since it has barely “corrected” and continues consolidating its recent move just below resistance. The bulls deserve the bullish benefit of the doubt until one of the major averages trades, and closes, below its respective 50 day moving average line.

Stocks End Mixed As Volume Recedes

Stocks End Mixed As Volume Recedes

Byinfo@50park.com

The stock market ended mixed on Monday after trading in a very tight range for most of the session. Volume, an important indicator of institutional sponsorship, was lower than Friday’s levels on both major exchanges which suggested large institutions were not aggressively selling stocks. Advancers led decliners by about a 10-to-9 ratio on the NYSE and were roughly even on the Nasdaq exchange. There were 29 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, less than the total of 45 issues that appeared on the prior session. Leadership among high-ranked growth stocks had dried up in recent weeks, so the expansion in new highs this week has been a welcome improvement. New 52-week highs solidly outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.

The Euro's 10 Year Anniversary- Historical Prices

The Euro's 10 Year Anniversary- Historical Prices

Byinfo@50park.com

In case you didn’t know the euro is celebrating its 10 year anniversary this year. The name was officially adopted on December 16, 1995 and was introduced to the financial markets on January 1, 1999. Three years later, On January 1, 2002, the euro entered circulation and has emerged as the world’s second reserve currency behind the US dollar.

Jobs Report: Why Does It Matter?

Jobs Report: Why Does It Matter?

Byinfo@50park.com

The jobs report is extremely important, especially now, because in October 2009, the unemployment rate surged to a 26-year high of 10.2%! Over the past few months, the number of job losses have steadily declined as the unemployment rate edged higher. If this trend continues we can easily turn positive (i.e. start creating jobs) in the near future which will bode well for the economic recovery. That said, Wall Street watches this report very closely because a stronger jobs picture translates into a healthier economy. A healthier economy translates into stronger sales and earnings which, in turn, translates into higher stock prices. Sometimes, ladies and gentlemen, it is that simple.