Stocks Rally After Shrugging Off Greek Woes

Thursday, April 22, 2010
Market Commentary:

The major averages shook off earlier weakness and turned positive after President Obama outlined his plan to over hall the financial system. Greek concerns swelled. Volume, an important indicator of institutional sponsorship, rose compared to Wednesday’s totals. Advancers led decliners by a 23-to-14 ratio on the NYSE and by a 17-to-10 ratio on the Nasdaq exchange. New 52-week highs still easily trumped new lows on both exchanges. There were 70 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 54 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally, but that number abruptly contracted amid the latest bout of distribution.

Europe’s Debt Continues To Explode!

The European Union said that Greece’s deficit was a stunning +13.6% of gross domestic product in 2009 which topped analysts estimates for a +12.9% reading. In addition, Ireland surpassed Greece as the EU nation with the largest deficit. It’s deficit was revised up to +14.3%. Initially, this sent stocks plunging as investors were concerned that the EU and the IMF will have to bailout more nations. However, their fears were allayed after President Obama gave a speech in lower Manhattan which outlined his plan to over hall the financial system.

Earnings, Earnings, & Earnings!

News was mixed on the earnings front, shares of Ebay Inc (EBAY -5.74%), Qualcomm Inc. (QCOM -7.74%), Nokia (NOK -13.11%) and Credit Suisse Group (CS -4.06%) all gapped down after reporting lackluster results. Meanwhile, shares of fast food chain Chipotle Mexican Grill (CMG +14.18%) and Isilon Systems (ISLN +22.77%) surged after reporting stellar results.
After Thursday’s close, shares of Amazon.com Inc. (AMZN –2.50%) and Microsoft Corp. (MSFT +0.19%) traded lower in afterhours trading after reporting their latest quarterly results while shares of American Express (AXP X+1.70%) jumped after their latest quarterly report was released.

Market Action- Confirmed Uptrend:

Remember, it is important to note that the major averages have been steadily rallying since early February and a pullback of some sort should be expected. However, the fact that we have yet to see a modest pullback bodes very well for the bulls. 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, 
Click Here to get connected with one of our portfolio managers. ** Serious inquires only, please.

Similar Posts

  • Healthy Economic Data Helps Stocks

    Looking at the market, the latest rally attempt was confirmed when a “cautious follow-through day” was produced by the Nasdaq Composite on Monday, March 1. Weighing into the decision to label the day a follow-through-day (FTD) was the strong action in leading stocks along with a great expansion noted in the new highs list. That action suggests that there is a healthy crop of strong stocks capable of fueling a substantial rally higher for the major averages. We will be looking out for any near-term distribution days (high volume declines) which would hurt the chances for this nascent rally. Until then, the bulls deserve the bullish benefit of the doubt as the major averages continue edging higher.
    It is 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 start buying high quality breakouts. Trade accordingly.

  • Slower Economic Growth Ahead?

    Thursday, May 19, 2011
    Stock Market Commentary:
    Stocks and a host of commodities ended mixed after the latest economic data missed estimates. So far, the old adage, “Sell in May and Go Away,” appears to be working brilliantly. From our vantage point, the market rally remains under pressure due to the lackluster action in the major averages and several leading stocks.
    Lousy Economic Data Weighs On Stocks:
    Investors digested a slew of economic data on Thursday. On the plus side, the Labor Department said weekly jobless claims fell by -29,000 to 409,000 last week but the four-week average is still above 400,000. On the downside, existing homes sales missed estimates at a 5.05 million annual unit rate, down -0.8% in April and tanked -12.9% vs. the same period in 2010. Leading economic indicators fell -0.3% in April following a 0.7% jump in March. The report also missed the Street’s estimates. In other news, the Philly Fed Survey also missed estimates which suggests sluggish economic growth may be on the horizon.
    Market Outlook- Rally Under Pressure
    From our point of view, the market rally is under serious pressure which suggests caution is paramount at this juncture. Looking forward, the next level of support for the major averages are their respective 50 DMA lines and resistance is their 2011 highs. The rally remains in tact as long as support holds on a closing basis. If you are looking for specific help navigating this market, please contact us for more information.
    Want Better Results?
    You Need Better Ideas!
    We Know Markets!
    Learn How We Can Help You!

  • Week-In-Review: Stocks Soar On Earnings & Tax Optimism

    Stocks Race Higher As Earnings Season Kicks Stocks soared last week on renewed hope of a tax cut and the vast majority of earnings (that were announced) beat estimates. The market went from being extended to being very extended as buyers continued to show up and aggressively accumulate stocks. From any normal perspective, the market…

  • Week-In-Review: Stocks Tank On Final Week Before Election

    The Tape Is Weak In a normal, non easy money world, we would say the market is tracing out a classic topping pattern and the days are numbered for this bull market. Last week we saw several major global central banks become “less dovish.” That doesn’t mean they won’t announce more easy money if markets…

Leave a Reply

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