Stocks Close Higher On Healthy Earnings Data

Byinfo@50park.com

Tuesday, April 20,2010
Market Commentary:

The major averages ended higher on Tuesday after Goldman Sachs (GS -2.05%) said Q1 earnings almost doubled and reaffirmed that it did not mislead investors in the SEC case. Volume, an important indicator of institutional sponsorship, slid compared to Monday’s totals. Advancers led decliners by over a 4-to-1 ratio on the Nasdaq exchange and by a 3-to-1 ratio on the NYSE. New 52-week highs still easily trumped new lows on both exchanges. There were only 37 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 16 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally, but that number abruptly contracted amid the latest bout of distribution.

Earnings, Earnings, & More Earnings!

Before Tuesday’s opening bell, investment giant, Goldman Sachs said Q1 earnings rose +61% compared to the first quarter in 2009 as sales surged +21%. Net income, which excludes all misc expenses almost doubled in the first quarter which bodes well for the financial industry. However, the stock encountered resistance near its 50 & 200 DMA lines and closed lower as investors are still concerned about the ongoing SEC investigation.
After Tuesday’s close, three prominent tech stocks released their latest quarterly results: Apple Inc. (AAPL -1.00%), Yahoo! Inc. (YHOO -0.05%), and Cree Inc. (CREE +2.62%) all reported solid quarterly results. All three stocks reported very strong results and blew away analysts estimates so it will be interesting to see how they close tomorrow.  

Market Action- Confirmed Uptrend:

Remember, it is important to note that the major averages have been steadily rallying since early February and a pullback of some sort should be expected. The prior commentary’s observation, “Since the March 1, 2010 follow-though-day (FTD) a handful of distribution days has not been the least bit damaging to the market’s confirmed rally” – was immediately followed with the 6th distribution day for the S&P 500 Index, a sign of mounting pressure on this 8-week rally. However, the fact that we have yet to see a modest pullback bodes very well for the bullish case. Trade accordingly.
Professional Money Management Services- Free Portfolio Review:
Our skilled team of portfolio managers knows how to follow the rules of this fact-based investment system. If your portfolio is greater than $100,000 and you would like a free portfolio review, Click Here to get connected with one of our portfolio managers. ** Serious inquires only, please.

Similar Posts

  • Day 1 Of New Rally Attempt; Stocks Positively Reverse!

    Byinfo@50park.com

    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.
    Save Over 50%!
    Limited-Time Offer!
    www.FindLeadingStocks.com
    Coming Up This Week:
    WEDNESDAY: Weekly mortgage apps, Challenger job-cut report, ADP employment report, IS non-mfg index, oil inventories; Earnings from Costco, Monsanto, Marriott
    THURSDAY: BoE announcement, ECB announcement, jobless claims, chain-store sales; Earnings from Constellation Brands
    FRIDAY: Non-farm payroll, wholesale trade, consumer credit, Sprint’s 4G plans unveiled
    Source: CNBC.com

  • Stocks Plunge Below 200 DMA line On Heavy Volume

    Byinfo@50park.com

    At this point, all the major averages sliced and closed below their respective 200 DMA lines which suggests lower prices will likely follow. Furthermore, the NYSE composite undercut its Thursday, May 6, 2010 low (Flash crash) which bodes poorly for this market. In addition, all the major averages are now down over -10% from their late April highs which is the first time that occurred since the March 2009 low. On Wednesday, all the major averages undercut their recent lows which means the day count was reset and we are now looking for Day 1 of a new rally attempt to occur. What does all of this mean for investors? Simple, the market remains in a correction which reiterates the importance of adopting a strong defense stance until a new rally is confirmed. Trade accordingly.

  • Day 7: Light Volume Fails To Confirm The Latest Rally Attempt

    Byinfo@50park.com

    Tuesday, February 16, 2010 Market Commentary: The major averages ended higher after the latest round of stronger than expected economic and earnings data was released. Volume, a critical indicator of institutional sponsorship, was lower than the prior session on both exchanges which prevented the major averages from producing a sound follow-through day.  Advancers trumped decliners by…

  • Stocks & Commodities Smacked As EU Debt Woes Continue

    Byinfo@50park.com

    Heretofore, the action since this rally was confirmed on the September 1, 2010 follow-through day (FTD) has been strong but the market action has been wide-and-loose which is not a healthy sign and has caused the major averages to all pullback to their respective 50 DMA lines. This is the next important level of support for the major averages and several leading stocks. It is of the utmost importance for the bulls to show up and defend the 50 DMA line in order for this rally to remain intact. Caution and patience is key at this point. Trade accordingly.

  • Day 1 Of A New Rally Attempt!

    Byinfo@50park.com

    Market Outlook- Market In A Correction:
    From our point of view, the market is back in a correction now that all the major averages closed below their respective 50 DMA lines and important upward trendlines. Since the beginning of May, we have urged our clients and readers to be extremely cautious as the major averages and a host of commodities began selling off.
    For those of you that are interested, the S&P 500 hit a new 2011 high on May 2, 2011. Two days later, on Wednesday, May 4, 2011, we turned cautious and said “The Rally Was Under Pressure” (read here). Then on Monday, 5.23.11, we changed our outlook to “Market In A Correction” (read here). On Monday June 6, 2011 we pointed out that the S&P 500 violated its 9-month upward trendline (read here) and reiterated our cautious stance. We have received a lot of “thank you” emails for being “spot on” in our cautious approach. We are humbled by your presence and very thankful for your continued support. Looking forward, the next level of resistance for the major averages is their respective 50 DMA lines then their 2011 highs. The next level of support is their longer term 200 DMA lines. If you are looking for specific help navigating this market, please contact us for more information.

Leave a Reply

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