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 End Holiday Week Mixed

    It was encouraging to see the bulls show up and defend the Dow Jones Industrial Average’s 50 DMA line. The 12-week rally ended on Tuesday, November 16, 2010 after the major averages plunged in heavy volume back down towards their respective 50 DMA lines. In recent weeks, we have repeatedly written about how the major averages were experiencing wide-and-loose action after a big move and made it very clear that that was not a healthy sign. At this point, we are looking for a new rally to be confirmed with a new follow-through day before taking any new positions. Caution and patience are key at this point. Trade accordingly.

  • Stocks Slide As Record Month Ends; SP 500 Down For Yr!

    Market Outlook- Confirmed Rally:
    The major U.S. averages are back in a new confirmed rally and broke above the mid-point/resistance of their 6-week bullish double bottom base. The benchmark S&P 500 index scored a proper FTD on Tuesday, October 18, 2011, i.e. Day 12, when it rallied over 2% on heavier volume than the prior session. In addition, it is important to note that the bulls scored a victory since many of the major averages closed above their downward sloping 50 DMA lines for the first time since late July! 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.
    Stop Chasing Stocks,
    Let Them Chase You!
    Join FindLeadingStocks.com Today!

  • Stocks Marginally Higher After A Rather Busy Week

    Friday, December 9, 2011 Stock Market Commentary: For the week, risk assets were mixed as investors digested a slew of data and headlines from across the globe. From our point of view, the market confirmed its latest rally attempt on Wednesday, November 30, 2011 when all the major averages soared over +4% on monstrous volume in response…

  • The Western World Is Drowning In Debt!

    Market Outlook- Uptrend Under Pressure:
    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 current rally is under severe pressure as investors patiently await earnings season and continue to digest the latest economic data. Until all the major averages violate their respective 50 DMA lines on a closing basis, the market deserves the bullish benefit of the doubt. 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 Flirt With Resistance

    The benchmark S&P 500 Index marked Day 14 of its current rally attempt and is currently encountering resistance just below its 200 DMA line. The Dow Jones Industrial Average marked Day 5 of its latest rally attempt while the Nasdaq Composite marked Day 3. At this point, the window is now open for the major averages to produce a sound follow-through day (FTD) until the recent lows are breached. Furthermore, 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. Trade accordingly.

Leave a Reply

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