Monday, December 20, 2010
Stock Market Commentary:
The major US averages ended mixed on the first day of this shortened holiday week. All US markets will be closed on Friday in observance of Christmas. Market internals remain healthy, evidenced by an advancing advance/decline line and an expanding number of stocks reaching new 52-week highs.
Moody’s Downgrades in Otherwise Quiet Session
On Monday, Moody’s Investors Service downgraded several Irish lenders and debt securities. This sent the Euro plunging to a fresh record low against the Swiss franc and sent the euro slightly lower against the greenback. U.S. stocks closed higher after trading between positive and negative territory as financials, telecom and technlogy sectors led while XXX lagged. It was encouraging to see the benchmark S&P 500 index hit a new two-year high as the tech-heavy Nasdaq composite and small-cap Russell 2000 indices both marked fresh multi year highs for the second straight week. It is also very impressive to see that the S&P 500 has only produced 2 down days in the past 14, this is a strong action.
Market Action- Market In Confirmed Rally Week 17
It is encouraging to see the bulls show up in November and defend the 50 DMA lines for the major averages. The market remains in a confirmed rally until those levels are breached. The tech-heavy Nasdaq composite and small-cap Russell 2000 indexes continue to lead evidenced by their shallow correction and strong recovery. Put simply, stocks are strong. Trade accordingly. If you are looking for specific high ranked ideas, please contact us for more information.