Stocks Rally As USD Falls

Monday, December 13, 2010
Stock Market Commentary:

Stocks rallied as the USD fell and China said it will hold rates steady even though inflation is accelerating. Market internals remain healthy, evidenced by an advancing advance/decline line and an expanding number of stocks reaching new 52-week highs.

China’s Central Bank Holds Rates Steady:

China’s central bank decided to hold rates steady even though inflation accelerated to the fastest rate in more than two years. The Chinese central bank held its benchmark interest rate unchanged which helped a slew of stocks and commodities rally. The move also helped allay concerns that the world’s fastest growing major economy will slow down which would adversely affect the global recovery. The US Fed is slated to hold its last meeting of the year on Tuesday. The market believes the meeting will largely be a non-event as most of the news has already been announced.

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.

Are You Looking For Someone To Manage Your Money?
Our Private Wealth Management Services Can Help You!

Sarhan Wealth Management provides both global macro and equity only consulting services to high net worth and institutional clients around the world. For years, our clientele has participated in the firm’s objective market-based outlook, which has one primary goal: to provide robust trading ideas across all asset classes. Since 2004 we have outperformed the S&P 500 on a regular basis. These results are based solely on our weekly research. All our historical data is available upon request.
How we can improve your performance:

  • Achieve better results in the market by working with an objective third party.
  • Provide you with sound buy/sell ideas in real-time.
  • Provide objective feedback on your investment ideas and market outlook.
  • Contribute profitable ideas to your investment committee (if applicable).
  • All investment ideas are fully transparent, unbiased, and based on market action, not opinions.
  • Help create uniformed structure within your organization.

Contact Us To Learn How We Can Help You!

Similar Posts

  • Stocks Mixed, Commodities Down; USD Up

    Heretofore, the action since this rally was confirmed on the September 1, 2010 follow-through day (FTD) has been strong but the market action has been wide-and-loose which is not a healthy sign. The S&P 500 sliced below its two month upward trendline (shown above) which is not ideal. The next level of support for the major averages is their September highs, then their respective 200-day moving average (DMA) lines while the next level of resistance is their respective April highs. We have enjoyed large gains since the September 1st FTD and for the first time, the tape is getting sloppy. Trade accordingly.

  • Another Lousy Week For Stocks

    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 Our Consulting Services Can Help You!

  • A Clear Downtrend Has Formed

    Market Outlook- Market In A Correction
    From our point of view, the market is in a correction as a new downtrend has formed and the 50 DMA line is broken for many of the major averages. Since the beginning of May, we have urged caution as the major averages and a host of commodities began selling off. Distribution remains elevated (heavy selling from the institutional community) and leading stocks continue to lag. Looking forward, the next level of support is the 9-month upward trendline and the next level of resistance is the 50 DMA line and then the 2011 highs. 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 Our Consulting Services Can Help You!

  • Day 1 Of A New Rally Attempt!

    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.
    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 cautious approach. We are humbled by your presence and very thankful for your continued support. Looking forward, the next level of resistance for the major averages is their respective 50 DMA lines then their 2011 highs. The next level of support is their longer term 200 DMA lines. If you are looking for specific help navigating this market, please contact us for more information.

  • Week In Review: Stocks End Mixed Ahead of Fed Meeting

    Stocks End Mixed Ahead of Fed Meeting Stocks ended mixed last week as investors look forward to next week’s Fed meeting (Tues/Wed) and the on-going drama with Greece. The latest round of incoming economic “data” failed to “impress” which means the Fed will likely not raise rates in the near future. It is important to note that…

Leave a Reply

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