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.
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