New! Bin Laden's Toast; Stocks Fall
Monday, May 02, 2011
Stock Market Commentary:
Late Sunday night President Obama announced that U.S. forces killed Osama Bin Laden in a private compound in Pakistan! The market is back in a confirmed uptrend and remains healthy as long as all the major averages continue trading above their respective 50 DMA lines and recent chart highs. The recent healthy action was in response to a very accommodative Fed, a series of stronger than expected Q1 results, and a host of solid economic data. Now that the market is back in a confirmed rally, odds favor higher, not lower, prices lie ahead.
Bin Laden Is Toast, Earnings & Economic Data Top Estimates:
On Monday, stocks opened higher, but fell by the close, after Bin Laden was killed and the latest round of economic and earnings data topped estimates. In other news, silver sank after CME Group Inc. (CME) raised margin requirements (the amount of cash needed for speculative positions) for the red-hot commodity.
News on the economic front topped estimates, the Institute for Supply Management’s (ISM) manufacturing index slid to 60.4 in April, down from 61.2 in February. The Street was expecting a reading of 59.5. March’s total also topped the boom/bust level of 50 which signals expansion.
Market Outlook- Market In A Confirmed Rally
From our point of view, the market is back in “rally-mode” as all the major averages continue to trade above their respective 50 DMA lines and recent chart highs! In addition, leading stocks have held up very well even as the major averages slid below their respective 50 DMA lines in mid-April which is another encouraging sign. If you are looking for specific help navigating this market, please contact us for more information.
Want Better Results?
You Need Better Ideas!
We Know Markets!
Learn How We Can Help You!
