Stocks Rally Ahead of GDP Data
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Starting May 1, 2012.
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SP 500 Back In A Confirmed Uptrend
Thursday, April 26, 2012
Stock Market Commentary:
Stocks and a slew of other “risk assets” rallied on Thursday as investors shrugged at the latest round of mixed to weaker than expected economic and earnings data. As earnings and economic data continues to be released in droves, it is paramount that we not only pay attention to the actual numbers but how the stocks (and major averages) react to the numbers. This allows us to see how the market participants are “voting” and helps us filter out the noise and focus on what matters most: price action. We find it encouraging to see all the major averages jump back above their respective 50 DMA lines in the wake of Apple’s blow-out quarter.
Jobless Claims Are Still High:
Stocks and a slew of risk assets rallied on Thursday as they digested Wednesday’s strong move and the latest round of mixed to weaker-than-expected economic and earnings data. Before Thursday’s open, the Labor Department said weekly jobless claims slid by 1,000 to a seasonally adjusted 388,000. However, the closely watched four-week moving average rose by 6,250 to 381,750 which was the highest reading since January and topped the Street’s estimate for 375,000. Separately, pending home sales rose +4.1% to 101.4 which topped the Street’s estimate for 96. A slew of earnings were released and were mixed to slightly lower.
Market Outlook- Confirmed Uptrend
From our point of view, the market back in a confirmed uptrend as the bulls appear to have regained control of this market. The major averages are back above their respective 50 DMA lines and short term downward trendlines (shown above) which is very healthy. As always, keep your losses small and never argue with the tape. If you are looking for specific help navigating this market, feel free to contact us for more information. That’s what we are here for!