Stocks Quiet Ahead of GDP & House Vote!

Byinfo@50park.com

Thursday, July 28, 2011
Stock Market Commentary:

Stocks were relatively quiet on Thursday after jobless claims topped estimates, the latest round of corporate earnings were announced, and the debt stalemate continued in D.C.. It is a bit worrisome to see the Nasdaq 100 negate its latest breakout and pull back along side the other major averages. Technically, the current rally is under pressure as all the major averages are pulling back towards their respective 50 DMA lines. The Dow Jones Industrial Average & benchmark S&P 500 index sliced and closed below their respective 50 DMA line which is not a healthy sign. Looking forward, the next level of support are the 2011 lows/the 200 DMA lines and the next level of resistance are the 2011 highs.

Debt Deadline Approaches, Economic Data & Earnings Help Stocks:

Before Thursday’s open, the Labor Department said jobless claims fell by a seasonally adjusted -24,000 to 398,000 last week.  It was somewhat encouraging to see claims fall below –400,000 for the first time since April 2. In case you do not know, most economists view 400,000 as the dividing line between job growth and job contraction. So it will be interesting to see if this is a one off or the beginning of a new trend (stronger job growth). Earnings news was mixed, Crocs Inc. (CROX), Skechers USA (SKX), and Green Mountain Coffee (GMCR) all rallied while Exxon Mobil (XOM) and Akamai Technologies (AKAM) fell after releasing their numbers. After Thursday’s close, the House is scheduled to vote on a Boehner’s latest plan, a slew of earnings are slated to be released, and Q2 GDP will be released before Friday’s open. It goes without saying, it will be a very ‘busy’ 24 hours.
Market Outlook- Rally Under Pressure
The latest action in the major averages suggests the current rally is under pressure. Our longstanding clients/readers know, we like to filter out the noise and focus on what matters most: market action. That said, the recent action suggests caution is paramount at this stage until all the major averages rally back towards their respective 2011 highs. If you are looking for specific help navigating this market, please contact us for more information.
 

Stock Market Research?

Global Macro Research?

Learn How To Follow Trends?

See How We Can Help You!

Similar Posts

  • Another Volatile Week On Wall Street

    Byinfo@50park.com

    The benchmark S&P 500 Index marked Day 13 of its current rally attempt while narrowly avoiding undercutting its 5/25/10 low thus far but failed to score a proper FTD due to the light volume that accompanied Thursday’s strong move. The Dow Jones Industrial Average marked Day 4 of its latest rally attempt while the Nasdaq composite marked day 2. 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. Remember, we have seen these very strong light volume rallies in the past only to fail a few days later. Trade accordingly.

  • Stocks Soar on EU Bailout Rumors

    Byinfo@50park.com

    Market Outlook- In A Correction:
    The major U.S. averages are still in a “correction” as they continue to bounce towards resistance of their 2-month base. The latest follow-through day (FTD) which began on August 23, 2011 has officially ended which means we will continue “counting” days before a new rally can be confirmed. 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! The next stop is September’s highs and then their 200 DMA lines. 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.
    Fall Sale- We Will Double Your Order!!!
    Limited-Time Offer!
    www.FindLeadingStocks.com
    On Tap This Week:
    MONDAY: Industrial production, Fed’s Lacker and Evans speak; Earnings from IBM
    TUESDAY: PPI, treasury international capital, housing market index, Bernanke speaks; Earnings from BofA, Coca-Cola, Goldman Sachs, J&J, Apple, Intel, CSX and Yahoo
    WEDNESDAY: Weekly mortgage apps, CPI, housing starts, Fed’s Rosengren speaks, oil inventories, Fed’s Beige Book; Earnings from Morgan Stanley, Travelers, United Tech, AmEx, Ebay, Western Digital
    THURSDAY: Jobless claims, existing home sales, Philadelphia Fed survey, leading indicators, Fed’s Bullard and Kocherlakota speak, NewsCorp investor day; Earnings from AT&T, Eli Lilly, Nokia, AutoNation, Microsoft, Capital One, Chipotle and SanDisk
    FRIDAY: Fed’s Kocherlakota speaks, 2011 Dodd-Frank Rulemaking Deadline; Earnings from GE, McDonald’s, Verizon, Honeywell and Schlumberger
    Source: CNBC.com

  • Day 1 Of A New Rally Attempt

    Byinfo@50park.com

    Wednesday marked Day 1 of a new rally attempt which means that the earliest a possible follow-through day (FTD) could emerge will be Monday. However, if at anytime, Wednesday’s lows are breached then the day count will be reset. The technical action in the major averages and the latest round of economic data bodes poorly for the market and the global recovery. Currently, resistance for the the major averages are their 50 DMA lines, then their longer term 200 DMA lines while support remains July’s lows. It is also disconcerting to see the action in several leading stocks remain questionable as evidenced by the dearth of high-ranked leaders breaking out of sound bases. Monday’s negatively reversal coupled with Tuesday’s ugly distribution day effectively ended the latest rally attempt. This emphasizes the importance of remaining cautious until the rally is back in a confirmed uptrend. Put simply, we can expect this sideways/choppy action to continue until the market breaks out above resistance or below support. The first scenario will have bullish ramifications while the second will be clearly bearish. Trade accordingly.

  • Quiet Day On Wall Street

    Byinfo@50park.com

    Market Action- Confirmed Rally; Week 25
    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.
    Are You Looking For Someone To Manage Your Money?
    Our Private Wealth Management Services Can Help You!