Stocks Bounce As New Week Begins

Byinfo@50park.com

Monday, May 09, 2011
Stock Market Commentary:

Stocks and a host of commodities rallied after last week’s week-long “Flash Crash.” From our vantage point, the market rally remains under pressure due to the lackluster action in the major averages and so many leading stocks.

Stocks Rally As Jobs Related Bounce Continues

Stocks and a host of commodities rallied on the first day of the week, rebounding from last week’s very sharp sell off. It was encouraging to see a slew of leading stocks hold up rather well during lat week’s sell off ranging from: AAPL, NFLX, BIDU, PCLN, GMCR, MCP, & AMZN. 

Market Outlook- Rally Under Pressure

From our point of view, the market rally is under pressure which suggests caution is paramount at this stage.  Looking forward, the next level of support for the major averages are their respective 50 DMA lines. The rally remains in tact as long as support holds. If you are looking for specific help navigating this market, please contact us for more information.

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    Market Outlook- In A Correction:
    The major U.S. averages are back in a “correction” as they continue to flirt and in some cases hit fresh 2011 lows. Allow us to be clear: If all the major averages break below their 2011 lows, then we will likely see another leg down. Please, trade accordingly! Several high ranked leaders violated their respective 50 DMA lines in late September which bodes poorly for the bulls and suggests the bears are getting stronger. The latest follow-through day (FTD) which began on August 23, 2011 has officially ended which means we will begin “counting” days before a new rally can be confirmed. In addition, it is important to note that the bears remain in control of this market until the major averages trade above their longer and shorter term moving averages (50 & 200 DMA lines). Our longstanding clients/readers know, we like to filter out the noise and focus on what matters most: market action. . If you are looking for specific help navigating this market, please contact us for more information.
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