Stocks Tank On Tepid Jobs Report; Euro Plunges To A New Multi-Year Low!

Stocks Tank On Tepid Jobs Report; Euro Plunges To A New Multi-Year Low!

Byinfo@50park.com

The author of “How To Make Money In Stocks”, the book that explains the fact-based investment system, has observed in the past that a market should not be considered to be in “healthy” shape unless at least 2 of the 3 major averages are trading above their rising 200-day moving average (DMA) lines. Only the Nasdaq Composite Index is currently above its long-term average, meanwhile the S&P 500 and Dow are encountering resistance. It would be very encouraging to see a proper follow-through-day (FTD) emerge for the benchmark S&P 500 and the Dow Jones Industrial Average to offer additional confirmation of a hearty new rally. Yet, acknowledging that we have a new confirmed rally based on the latest market improvements, the window is now considered to be open again to begin buying high-ranked stocks that trigger new technical buy signals but caution is sometimes the better part of valor.

Market's Edge Higher & Wait For Friday's Jobs Report

Market's Edge Higher & Wait For Friday's Jobs Report

Byinfo@50park.com

The paper said Wednesday’s move in the Nasdaq composite marked a follow-through day for that index. We have received numerous emails and phone calls inquiring about the discrepancy in yesterday’s report. The simple fact is that the paper is using May 25, 2010 as Day 1 for the Nasdaq composite even though it closed lower on the day. From their perspective, the “essence of Day 1” occurred and that sufficed. It would be very encouraging to see a proper follow-through-day (FTD) emerge for the benchmark S&P 500 and the Dow Jones Industrial Average to confirm yesterday’s strong move. Now that we have a follow-through day, the window is open to begin buying high ranked stocks that trigger new technical buy signals. If you have any further questions on this matter, or would like to discuss your portfolio or the market, please feel free to email: info@sarhancapital.com.

Where's the Volume? Stocks Rally on Mixed Volume

Where's the Volume? Stocks Rally on Mixed Volume

Byinfo@50park.com

Wednesday marked day 1 of a new rally attempt for the tech-heavy Nasdaq composite. It is important to note that the window is now open for a proper FTD to emerge for the benchmark S&P 500 and the Dow Jones Industrial Average. Even though, both indexes enjoyed strong gains today, volume, a critical indicator of institutional sponsorship, was lighter than the prior day’s level which prevented a proper FTD from emerging.

Stocks & Euro Tank On Strong Economic Data

Stocks & Euro Tank On Strong Economic Data

Byinfo@50park.com

The Nasdaq composite sliced below Thursday’s lows which reset the day count for that index. Meanwhile, the Dow Jones Industrial Average just ended Day 3 of a new rally attempt which opens the window for a proper follow-through day to emerge. Elsewhere, as long last Tuesday’s lows (1040) are not breached in the S&P 500, the window remains open for a proper FTD to occur. However, if at anytime last Tuesday’s lows are breached in the S&P 500, then the day count will be reset. What does all of this mean for investors? Simple, the market remains in a correction which reiterates the importance of adopting a strong defense stance until a new rally is confirmed. Trade accordingly.

Stocks Jump As China Eases Debt Woes

Stocks Jump As China Eases Debt Woes

Byinfo@50park.com

Thursday marked Day 3 of a new rally attempt for the benchmark S&P 500 Index and Day 1 for the other major averages. That said, as long Tuesday’s lows are not breached in the S&P 500, the earliest a proper follow-through day (FTD) could occur would be Friday. However, if at anytime Tuesday’s S&P 500 Index lows are breached, then the day count will be reset. What does all of this mean for investors? Simple, the market remains in a correction which reiterates the importance of adopting a strong defense stance until a new rally is confirmed. Trade accordingly.

Stocks & Euro Negatively Reverse

Stocks & Euro Negatively Reverse

Byinfo@50park.com

Wednesday marked Day 2 of a new rally attempt for the benchmark S&P 500 index but the other major averages have yet to mark Day 1 which is a negative divergence. That said, as long Tuesday’s lows are not breached in the S&P 500, the earliest a proper follow-through day (FTD) could occur would be Friday. However, if at anytime, Tuesday’s lows are breached, then the day count will be reset. What does all of this mean for investors? Simple, the market remains in a correction which reiterates the importance of adopting a strong defense stance until a new rally is confirmed. Trade accordingly.

Stocks Rally After Hitting Fresh 2010 Lows

Stocks Rally After Hitting Fresh 2010 Lows

Byinfo@50park.com

All the major averages sliced below Friday’s lows which effectively ended the current rally attempt and reset the base count. However, the S&P 500 managed to close higher for the day which marked Day 1 of a new rally attempt for that index. In addition, the earliest a proper follow-through day (FTD) could occur would be Friday, providing Tuesday’s lows are not breached. However, if at anytime, Tuesday’s lows are breached, then the day count will be reset. What does all of this mean for investors? Simple, the market remains in a correction which reiterates the importance of adopting a strong defense stance until a new rally is confirmed. Trade accordingly.

Stocks Edge Lower As EU Debt Woes Spread

Stocks Edge Lower As EU Debt Woes Spread

Byinfo@50park.com

Monday, May 24, 2010 Stock Market Commentary: The major averages ended lower as the dollar rallied after European debt woes continued to spread. As expected volume was lighter compared to Friday’s heavy options expiration levels. Decliners led advancers by more than a 23-to-15 ratio on the NYSE and by nearly a 2-to-1 ratio on the Nasdaq exchange. New 52-week lows outnumbered new 52-week highs…

Day 1 Of A New Rally Attempt

Day 1 Of A New Rally Attempt

Byinfo@50park.com

Stocks took a heavy beating on Thursday, sending all the major averages below their respective 200 DMA lines on heavy volume. Stocks ended higher on Friday after the S&P 500, Russell 2000 and Nasdaq Composite all shook out below their May 6, 2010 (flash crash) low. For the week, all the major averages suffered tremendous losses and fell over -10% from their late April highs, which is the first time a pullback of that magnitude has occurred since the March 2009 low. The fact that the market rallied on Friday technically marked Day 1 of a new rally attempt which means the earliest a proper follow-through day (FTD) could occur would be Wednesday, providing Friday’s lows are not breached. However, if at anytime, Friday’s lows are breached, then the day count will be reset. What does all of this mean for investors? Simple, the market remains in a correction which reiterates the importance of adopting a strong defense stance until a new rally is confirmed. Trade accordingly.

Stocks Plunge Below 200 DMA line On Heavy Volume

Stocks Plunge Below 200 DMA line On Heavy Volume

Byinfo@50park.com

At this point, all the major averages sliced and closed below their respective 200 DMA lines which suggests lower prices will likely follow. Furthermore, the NYSE composite undercut its Thursday, May 6, 2010 low (Flash crash) which bodes poorly for this market. In addition, all the major averages are now down over -10% from their late April highs which is the first time that occurred since the March 2009 low. On Wednesday, all the major averages undercut their recent lows which means the day count was reset and we are now looking for Day 1 of a new rally attempt to occur. What does all of this mean for investors? Simple, the market remains in a correction which reiterates the importance of adopting a strong defense stance until a new rally is confirmed. Trade accordingly.