Dear Friends: At the close of another year, Sarhan Capital would like to extend our most sincere gratitude to all of our clients, partners, and readers around the world for helping to make our work possible. While still a relatively young Wall Street firm, Sarhan Capital has taken great strides in this decade and in 2009…
Th Inverse Correlation Explained:
In the recent past, there has been an inverse correlation between the U.S. dollar and dollar denominated assets (mainly stocks and commodities). By definition, the inverse correlation states that stocks and commodities (which are priced in dollars) will fall when the dollar rallies. Since early December, the greenback has steadily rallied which has put pressure on several capital markets. As the following few charts show, on a relative basis, crude oil is the hardest hit, followed by gold, then U.S. equities. What does this mean? We’ll let you draw your own conclusions by commenting below.
The S&P 500 and Dow Jones Industrial Average closed at fresh 2009 highs on Monday. At this point, the major averages are just below important resistance levels for the year (Full commentary here) and appear poised to move higher. If they manage to close above their respective resistance levels on heavy volume then odds will favor a new leg higher will commence. That said, here is a list of 30 stocks that sport strong technical chart patterns:
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.
An investor’s job is simple, but not easy. We have one goal: identify and capitalize on opportunities in the marketplace. Here are 10 stocks that are on my watchlist for Wednesday 12.09.09:
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.
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.
On Friday stocks sold off as investors unloaded their positions ahead of the the weekend. The catalyst which precipitated this sell off was Dubai World’s trouble restructuring their debt. Dubai World, the most indebted of Dubai’s state-sponsored companies, is seen as a barometer for the health of the financial nexus.
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.
It seems like the entire world is focusing on the 2009 U.S. holiday shopping season. Around this time each year, the media, clients and friends ask us countless questions on the subject. Most people want to know what a so-called “expert” thinks will happen on any given event. Predicting the future is impossible because the simple truth is that no one really knows what will happen. Instead, these “experts” offer their opinion which at times will be correct and other times will be incorrect. After all, we all know how valuable opinions are, right?