Major Averages Back Above 50 DMA Lines!
Tuesday, April 17, 2012
Stock Market Commentary:
Stronger than Expected Earnings Help Stocks:
Stocks opened higher on Tuesday as investors digested the latest round of earnings and economic data. A slew of large profile companies released their Q1 earnings before Tuesday’s open ranging from Goldman Sachs (GS, to Johnson & Johnson (JNJ). Meanwhile, the economic data was not ideal. The Commerce Department said housing starts fell an expected -5.8% to a seasonally adjusted annual rate of 654,000 units in March. This missed the Street’s estimate for 705,000 and it was also disconcerting to see February’s reading be revised down to 694,000. Meanwhile, industrial production was unchanged for a second straight month in March which missed a gain of +0.3%.
Market Outlook- In A Correction
From our point of view, the market is getting stronger now that several of the major averages are fighting to get back above their respective 50 DMA lines. Therefore, probing the long side with close protective stops (below the 50 DMA line) might be prudent if you are looking for a low risk entry point. As always, keep your losses small and never argue with the tape. If you are looking for specific help navigating this market, feel free to contact us for more information. That’s what we are here for!
