Stocks Flirt With Resistance
Monday, June 14, 2010
Market Commentary:
Stocks ended mixed but near their intraday lows after Greece’s Debt was downgraded by Moody’s. Volume totals were mixed compared to Friday’s levels; higher on the Nasdaq and lower on the NYSE. Advancers led decliners by nearly a 2-to-1 ratio on the NYSE and by a 5-to-4 ratio on the Nasdaq exchange. There were 31 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 19 issues that appeared on the prior session. New 52-week highs outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.
200 DMA Line Is Resistance:
The MSCI World Index rose for a fifth consecutive day which was its the longest winning streak since October 2009 as the US dollar continued its 5-day slide against the euro. This should not surprise any of our readers because we have written for months about the inverse relationship between the dollar and dollar denominated assets (mainly stocks and commodities). That said, the euro edged higher after European industrial production rose which suggests the global economy continues to rebound. The euro and US equities pulled back after Moody’s cut Greece’s credit rating and ended near the intraday lows.