Day 2 Of A New Rally Attempt
Tuesday, February 2, 2010
Market Commentary:
Stocks and commodities rallied as the dollar fell for a second consecutive day after healthy news from the ailing housing front was released and the Australian central bank unexpectedly left interest rates steady. Volume was heavier than the prior session on the NYSE and Nasdaq exchange which signaled large institutions were buying stocks. Advancers led decliners by over a 3-to-1 ratio on the NYSE and by a 5-to-4 ratio on the Nasdaq exchange. There were 17 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 7 issues that appeared on the prior session. New 52-week highs still outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.
Australia’s Central Bank & The US Dollar:
Overnight, the Reserve Bank of Australia left rates steady at +3.75% which surprised a slew of economists and analysts across the globe. Nearly everyone believed that Australia would raise rates to combat inflation. This allayed pressure on other central bankers to start raising rates as we make our way out of the worst global recession since WWII. The Street believes that the European Central Bank (ECB) and the Bank of England (BOE) will keep borrowing costs unchanged when they meet later this week. The dollar fell for a second straight day which sent a host of dollar denominated assets higher on Tuesday.