Stocks Edge Higher As Dollar Falls

Monday, March 29, 2010
Market Commentary:

The US dollar fell which helped send a slew of dollar denominated assets higher on Monday. However, volume totals on the NYSE and on the Nasdaq exchange were reported lower compared to Friday’s totals while advancers led decliners by a healthy margin on both exchanges. There were 31 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 17 issues that appeared on the prior session. New 52-week highs outnumbered new lows on both exchanges yet again.

Domestic & Foregin Economic Data:

The government said consumer spending rose in February for a fifth consecutive month while personal income held steady. The Labor Department is slated to release February’s jobs report this Friday even though the stock market will be closed in observance of Good Friday. Many pundits believe that Friday’s jobs report will display the largest monthly increase in payrolls in nearly three years. Elsewhere, the European Union said business and consumer confidence rose which is another welcomed sign.

Dollar Down; Stocks & Commodities Up:

All this, helped send the US dollar lower which, in turn, sent a slew of stocks and commodities higher. Oil enjoyed its largest single day advance in 5 weeks. Crude oil for May delivery jumped nearly +3% to $82.18 a barrel in New York. Meanwhile, Copper rose nearly +4% and hit a fresh 11- week high of $3.5355 a pound. Gold and silver both advanced, also helped by a weaker dollar. 
Market Action: Confirmed Rally- Week 5
The fact that there have only been two distribution days since the follow-though-day (FTD) bodes well for this nascent rally. It is also a welcome sign to see the market continue to improve as investors digest the latest round of stronger than expected economic and earnings data. Remember that now that a new rally has been confirmed, the window is open to proactively be buying high quality breakouts meeting the investment system guidelines. 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, please Click Here to get connected with one of our portfolio managers. ** Serious inquires only, please.

Similar Posts

  • Stocks Rally On A Slew Of Economic Data

    Market Outlook- Market In A Confirmed Uptrend:
    The last week of June’s strong action suggests the market is back in a confirmed rally. As our longstanding clients/readers know, we like to filter out the noise and focus on what matters most: market action. That said, the action remains bullish until the major averages and leading stocks violate their respective 50 DMA lines. Until then, the market deserves the bullish benefit of the doubt. Barring some unforeseen event, investors will likely be focusing on the jobs market this week and then turn their attention to Q2 earnings. If you are looking for specific help navigating this market, please contact us for more information.
    Stock Market Research?
    Global Macro Research?
    Want To Follow Trends?
    Learn How We Can Help You!

  • Stocks End Mixed After Hitting Fresh 2010 Lows!

    From our vantage point, the latest three day rally failed, evidenced by the ominous action in the major averages since Friday’s jobs report was released. It is well known that a market should not be considered “healthy” unless it trades above its rising 200-day moving average (DMA) line. The fact that all the major averages are below both their 50 & 200 DMA lines bodes poorly for the near term. That said, the bears will likely remain in control until the popular averages close above their important moving averages and the euro catches a bid.

  • Stocks Pullback To Consolidate Monday's Move

    At this point, the Dow Jones Industrial Average, S&P 500, and the NYSE Composite indexes have all traded above resistance at their long term 200-day moving average (DMA) lines and recent chart highs. The tech-heavy Nasdaq Composite and small-cap Russell 2000 index remain slightly below their recent chart highs. However, the fact that all of the major averages are trading above their respective 2-month downward trendlines bodes well for this five week rally. In order for a new leg higher to begin, all the major averages must close and remain above their respective resistance levels. Remember that the window remains open for for high-ranked stocks to be accumulated when they trigger fresh technical buy signals. Trade accordingly.

  • Stocks Digest Friday's Large Move

    The action since this rally was confirmed on the September 1, 2010 follow-through day (FTD) has been strong. Looking forward, the window is open for disciplined investors to carefully buy high-ranked stocks, while many pundits are expecting that markets may consolidate following recent gains. It was encouraging to see the bulls show up and defend support (formerly resistance) last week. The next level of support for the major averages is their respective 200-day moving average (DMA) lines while the next level of resistance is their respective April highs. Trade accordingly.

Leave a Reply

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