Daily Market Commentary

Happy Birthday Bull Market!

Wednesday, March 09, 2011
Stock Market Commentary:

On Wednesday, stocks slid as oil prices resumed their stubborn advance. The current crisis in the Middle East remains in flux which is putting upward pressure on oil and gold and some modest pressure on equities. The benchmark S&P 500 is up nearly 100% from its March 2009 low, and still about -16% off its all time high from October 2007. On average, market internals remain healthy as the major averages bounced after finding support near their respective 50 DMA lines in late February and early March.

Mortgage Applications & Wholesale Inventories Rise:

The Mortgage Bankers Association’s index of loan applications vaulted +16% during the first week of March. The stronger than expected number was the first piece of good news from the ailing housing sector in weeks. Elsewhere, the Commerce Department said wholesale inventories topped estimates in January. Wholesale inventories rose +1.1% which easily topped the median projection in a Bloomberg News survey for a +0.9% rise. The report also showed that sales rose +3.4% in January, led by technology, automobiles, and commodities.

Market Action- Rally Under Pressure; Week 28

It was encouraging to see the bulls show up and defend the major averages’ respective 50 DMA lines in November, January, late February, and early March. From our point of view, the market remains in rally-mode 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. If you are looking for specific high ranked ideas, please contact us for more information.

Have You Seen Our New Site?
Visit: www.SarhanCapital.com now!

 
 

Leave a Reply

Your email address will not be published.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