Thursday, April 28, 2011
Stock Market Commentary:

Stocks were relatively quiet on Thursday after jobless claims edged higher and the initial reading on Q1 GDP missed estimates. 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. The recent healthy action was in response to 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.

GDP Rises 1.8% & Jobless Claims Edge Higher

Before Thursday’s open, the government said Q1 GDP rose 1.8% which was just shy of the 1.9% expected on the Street. The inflation components of the report also ticked higher which puts pressure on the Federal Reserve to raise rates in the foreseeable future. Meanwhile, the Labor Department said jobless claims rose by 25,000 to 429,000 last week which also topped estimates.  After Thursday’s open, pending homes sales rose 5.1% to a three month high according to the National Association of Realtors. This was sharply higher than Bloomberg’s estimate for a +1.5% increase.

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 are flirting with, or at, fresh 2011 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.

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