Stocks Mixed Ahead of Apple Earnings

Byinfo@50park.com

Please Note:
After Nearly 10 Years of writing our daily stock market commentary, due to time constraints, this will become a weekly note-
Starting May 1, 2012.
We would like to thank you for your continued support and patronage!

Nasdaq Below Its 50 DMA line
Nasdaq Below Its 50 DMA line

Tuesday, April 24, 2012
Stock Market Commentary:

Stocks and a slew of other “risk assets” bounced on Tuesday after Monday’s shellacking. As earnings and economic data continues to be released in droves, it is paramount that we not only pay attention to the actual numbers but how the stocks (and major averages) react to the numbers. This allows us to see how the market participants are “voting” and helps us filter out the noise and focus on what matters most: price action. Since the beginning of April, the action has been less than stellar. We also find it disconcerting to see the benchmark S&P 500, Russell 2000, the Dow Jones Industrial Average, and Nasdaq composite close below their 50 DMA lines.

Housing & Earnings Data Dominate The Headlines:

Stocks and a slew of risk assets opened higher on Monday as investors digested the latest round of economic and earnings data. A slew of earnings data was released which largely topped estimates. Meanwhile, the housing data was not ideal. The S&P Case-Shiller index, which measures home prices in 20 metropolitan areas around the country, fell for a sixth straight month. A separate report showed that new home sales plunged -7.1% which was the largest drop in almost a year and is not ideal for the ailing housing market, the jobs market, or the broader economy. The Conference Board said its consumer confidence index fell which is not ideal.

Market Outlook- In A Correction

From our point of view, the market is still digesting its strong move in Q1 of 2011. The major averages are currently struggling with their respective 50 DMA lines as investors digest a slew of earnings and economic data. As always, keep your losses small and never argue with the tape. If you are looking for specific help navigating this market, feel free to contact us for more information. That’s what we are here for!
 

Similar Posts

  • Stocks (Barely) Snap A 6-Week Losing Streak

    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. Looking forward, the next level of resistance for the major averages is their recent lows (i.e. 1294 in the S&P 500) and then their respective 50 DMA lines. The next level of support is their longer term 200 DMA lines and then their March 2011 lows.
    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 approach. We are humbled by your presence and very thankful for your continued support. 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 Quiet As Next European Domino Wobbles

    Byinfo@50park.com

    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.

  • Stocks Rally On Hopes of Further Easing From Global Central Banks

    Byinfo@50park.com

    Friday, July 27, 2012 Stock Market Commentary: The bulls emerged victorious after a volatile week on Wall Street. The bears sent stocks lower during the first half of the week as EU debt woes flared up and Q3 earnings projections turned negative for the first time since 2009. However, the bulls showed up in the…

  • Week-In-Review: Stocks End Week Mixed As Trade Woes Divide Wall Street

    Byinfo@50park.com

    Stocks End Week Mixed As Trade Woes Divide Wall Street The split tape I mentioned over the last few weeks continues as the Nasdaq and Small-Cap Russell 2000 hit fresh record highs while the S&P 500 and Dow Jones Industrial Average lag. The reason is simple: there remains a lot of uncertainty with respect to…

  • Mubarak Steps Down; Stocks Enjoy Another Strong Week!

    Byinfo@50park.com

    Market Action- Confirmed Rally; Week 24 Ends
    It was encouraging to see the bulls show up and defend the major averages’ respective 50 DMA lines in November as this market proves resilient and simply refuses to go down. From our point of view, 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. However, it is important to note that stocks are a bit extended here and a pullback of some sort (back to the 50 DMA lines) would do wonders to restore the health of this bull market. If you are looking for specific high ranked ideas, please contact us for more information.