Stocks Edge Higher On Solid Economic Data

Thursday, December 16, 2010
Stock Market Commentary:

The major US averages continued trading in a relatively tight range as a flurry of headlines crossed the wires. Market internals remain healthy, evidenced by an advancing advance/decline line and an expanding number of stocks reaching new 52-week highs. However, volume patterns are not ideal which weighs on this market.

Spain’s Bond Auction & US Economic Data:

Spain’s bonds slid, sending the 10-year yield up four basis points to 5.56%, after the country sold 2.4 billion euros of 10-year and 15-year bonds at an auction on Thursday. The Bank of Spain said that the results were just below a maximum target of 3 billion euros. In the US, the Labor Department said jobless claims unexpectedly fell by -3,000 to 420,000 last week. Elsewhere, the Commerce Department said, housing starts swelled to a 555,000 annual rate last month which was 3.9% higher than October’s level. Finally, the Federal Reserve Bank of Philadelphia’s general economic index rose to 24.3 which topped the median forecast of 15, as orders and the factory workweek rose.

Market Action- Market In Confirmed Rally Week 16

It is encouraging to see the bulls show up 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.

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