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 Our Consulting Services Can Help You!

 

Stocks Rally On Healthy Retail Sales Data

Thursday, April 8, 2010
Market Commentary:

The major averages rallied on Thursday after a slew of US retailers reported stronger than expected same store sales. Volume totals on the NYSE and on the Nasdaq exchange were reported lower compared to Wednesday’s totals. Breadth was positive as advancers led decliners by about a 10-to-9 ratio on the NYSE, and by a 14-to-13 ratio on the Nasdaq exchange. New 52-week highs trumped new lows on both exchanges yet again. There were 36 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower from the 52 issues that appeared on the prior session.  A healthy crop of new leaders making new highs bodes well for any market rally, so the recent expansion in leadership has been a welcome post-holiday improvement.  However, the rising number of distribution days has raised some concerns.

Investor’s Digest A Slew Of Economic Data: Greece Woes, Jobless Claims & Healthy Retail Sales Data:

Continue reading