Looking forward, the window is now open for disciplined investors to begin carefully buying high-ranked stocks again. The major indices’ 200-day moving average (DMA) lines may act as near term resistance. Remember to remain very selective because all of the major averages are still trading below their downward sloping 50 and 200 DMA lines. It was also somewhat disconcerting to see volume remain light (below average) behind the confirming gains. It is important to note that approximately 75% of FTDs lead to new sustained rallies, while 25% fail. In addition, every major rally in market history has begun with a FTD, but not every FTD leads to a new rally. Trade accordingly.

Monday, April 5, 2010 Market Commentary: The major averages opened higher after the latest round of stronger than expected economic data was released. Monday was the first trading day after March’s nonfarm payrolls report was released. Stocks rallied around the world after the Labor Department reported the strongest monthly reading in payrolls since Q1 2007. The…