Friday, April 9 2010
Stocks closed higher for the week and overcame the latest round of mild distribution as leading stocks continued to act well and the Dow Jones Industrial Average briefly touched 11,000. On Fridya, volume totals on the NYSE and on the Nasdaq exchange were reported lower compared to Thursday’s totals, revealing a lack of buying conviction from the institutional crowd after recent distributional pressure. Breadth was positive as advancers led decliners by a 13-to-6 ratio on the NYSE and by a 5-to-4 ratio on the Nasdaq exchange. New 52-week highs trumped new lows on both exchanges yet again. There were 48 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 from the 36 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.
Stocks closed higher on Monday as investors returned from a long holiday weekend and the latest round of stronger-than-expected economic data was released. Monday was also the first trading day after March’s non-farm payrolls report was announced. Stocks rallied around the world after the Labor Department reported the strongest monthly reading in payrolls since Q1 2007. Elsewhere, the ISM released its service index which topped analysts’ estimates. Separately, pending home sales unexpectedly rose which bodes well for the ailing housing market. The healthy housing data helped a slew of housing stocks rally as investors believe “the worst” is over concerning the housing market’s downturn.