Stocks Slide On Possible Spain Downgrade

Wednesday, December 15, 2010
Stock Market Commentary:

The major US averages continued trading in a relatively tight range as a flurry of headlines crossed the wires. Market internals remain healthy, evidenced by an advancing advance/decline line and an expanding number of stocks reaching new 52-week highs.

Spain Might Be Downgraded & US Economic Data:

Moody’s, the popular rating agency, said it might cut Spain’s credit rating from Aa1 which sent the euro and a slew of European markets lower. The rating agency said they were concerned that Spain’s final bond sale of the year (Thursday) may be soft which could make them next in line to receive a bailout. Spain has to raise 170 billion euros ($226 billion) next year, while refinancing its onerous debt levels, accordingly to data complied at Moody’s.
In the US, NY mfg rebounded and topped forecasts in December which was the latest in a series of stronger than expected economic data. The Federal Reserve Bank of New York’s general economic index rose to +10.6. Elsewhere, a separate Fed report showed U.S. industrial production grew +0.4% which was higher than the +0.3% average estimate.

Market Action- Market In Confirmed Rally Week 16

It is encouraging to see the bulls show up and defend the 50 DMA lines for the major averages. The market remains in a confirmed rally until those levels are breached. The tech-heavy Nasdaq composite and small-cap Russell 2000 indexes continue to lead evidenced by their shallow correction and strong recovery. Put simply, stocks are strong. Trade accordingly. If you are looking for specific high ranked ideas, please contact us for more information.

Are You Looking For Someone To Manage Your Money?
Our Private Wealth Management Services Can Help You!

Sarhan Wealth Management provides both global macro and equity only consulting services to high net worth and institutional clients around the world. For years, our clientele has participated in the firm’s objective market-based outlook, which has one primary goal: to provide robust trading ideas across all asset classes. Since 2004 we have outperformed the S&P 500 on a regular basis. These results are based solely on our weekly research. All our historical data is available upon request.
How we can improve your performance:

  • Achieve better results in the market by working with an objective third party.
  • Provide you with sound buy/sell ideas in real-time.
  • Provide objective feedback on your investment ideas and market outlook.
  • Contribute profitable ideas to your investment committee (if applicable).
  • All investment ideas are fully transparent, unbiased, and based on market action, not opinions.
  • Help create uniformed structure within your organization.

Contact Us To Learn How We Can Help You!