Nasdaq Retreats; Other Major Averages Advance

Nasdaq Retreats; Other Major Averages Advance

Byinfo@50park.com

Stocks remain strong as investors digested the latest round of economic data. The benchmark S&P 500, Dow Jones Industrial Average, NYSE composite, mid-cap S&P 400, small-cap Russell 2000 and small-cap S&P 600 indices all enjoyed fresh recovery closing highs! The current rally is in its 44th week (since the March 12, 2009 follow-through day) and on all accounts still looks very strong. In addition, most bull markets last for approximately 36 months, so the fact that we are beginning our 10th month suggests we have more room to go. December’s jobs report will likely set the stage for the next near term move for the major averages but until support is broken (50 DMA lines for the major averages), this rally deserves the bullish benefit of the doubt.

Stocks End Mixed on Mixed Economic Data

Stocks End Mixed on Mixed Economic Data

Byinfo@50park.com

Tuesday, January 5, 2010 Market Commentary: The major averages closed mixed after spending most of the session in the red as investors digested the latest round of mixed economic data. Volume, an important indicator of institutional sponsorship, was reported higher than Monday’s totals which indicated large institutions were not aggressively dumping stocks. Advancers led decliners…

Stocks Surge On First Trading Day of 2010

Stocks Surge On First Trading Day of 2010

Byinfo@50park.com

Monday, January 04, 2010 Market Commentary: The major averages rallied on the first trading day of 2010 as the US dollar fell and healthy economic data was released from the US and China. As expected, volume, an important indicator of institutional sponsorship, was reported higher than Thursday’s pre-holiday totals which indicated large institutions were buying…

Stocks Surge In 2009 But Down For the Decade!

Stocks Surge In 2009 But Down For the Decade!

Byinfo@50park.com

We would like to wish all our loyal clients & readers a very Happy & Healthy 2010! The major averages ended lower on the last trading day of the year. Volume, an important indicator of institutional sponsorship, was reported lighter than Tuesday’s totals which indicated large institutions were not aggressively buying or selling stocks. Decliners…

Stocks End With Modest Gains

Stocks End With Modest Gains

Byinfo@50park.com

Looking at the market, the action remains constructive. The Dow Jones Industrial Average, small cap Russell 2000 Index, S&P 500 Index, Nasdaq Composite and NYSE Composite indices are all trading near fresh 2009 highs which bodes well for this rally. The inverse relationship with the US dollar has eased in recent weeks as both stocks and the greenback have rallied in tandem. Ideally, one would like to see leadership and volume expand over the next few weeks as the major averages continue advancing.

Stocks End Lower On Housing & Consumer Sentiment Data

Stocks End Lower On Housing & Consumer Sentiment Data

Byinfo@50park.com

Tuesday, December 29, 2009 Market Commentary: The major averages traded between positive and negative territory before ending lower as investors digested the latest round of mixed economic data. Volume, an important indicator of institutional sponsorship, was lower than Monday’s session which indicated large institutions were not aggressively dumping stocks. Advancers were about even with decliners…

Stocks Rally On A Busy Monday

Stocks Rally On A Busy Monday

Byinfo@50park.com

Looking at the market, the action remains healthy. The Dow Jones Industrial Average, small cap Russell 2000 index, S&P 500 and Nasdaq composite are all trading near fresh 2009 highs. Leaving the NYSE composite just below its 2009 high. The fact that the market managed to rally last week and hit new highs in the face of disconcerting economic data and a stronger dollar is a very healthy sign. Ideally, one would like to see leadership and volume expand over the next few weeks as the major averages continue advancing.

Santa Claus Visits Wall St.

Santa Claus Visits Wall St.

Byinfo@50park.com

The market closed higher for the week and on Thursday’s shortened pre-holiday session. Volume, an important indicator of institutional sponsorship, was lighter than Wednesday’s levels, again revealing the lack of appetite for accumulating shares from very large and influential institutional investors. Advancers led decliners by nearly a X-to-X ratio on the NYSE and by over…

Stocks End Higher on Mixed Economic Data

Stocks End Higher on Mixed Economic Data

Byinfo@50park.com

Looking at the market, the Dow Jones Industrial Average and benchmark S&P 500 index both closed near their respective resistance levels as they quietly consolidate their recent gains in lighter pre-holiday volume. Meanwhile, the tech-heavy Nasdaq composite continues to lead its peers as it managed to hit another 2009 high on Wednesday.
Remember that the S&P 500 plunged -58% from its all time high in October 2007 of 1,576 to its March 2009 low of 666. Since then, the market has rebounded over +65% but still remains -29% below its all-time high of 1,576. In addition, the index has retraced nearly -50% (455 points) of its decline (910 points) which is a popular Fibonacci level used by many technical analysts. Normally, markets rebound approximately 50% before resuming their prior trend (which would be down in this case). Longstanding readers of this column know that we do not predict the future. Instead, we remain open to any possible scenario that may unfold and interpret what we see happening by remaining objective and carefully analyzing the tape (price and volume) each day.