Monday, December 28, 2009
Stocks rallied around the world as the US dollar fell after stronger than expected economic data was announced from China and Japan. Volume, an important indicator of institutional sponsorship, was lighter than Wednesday’s levels, again revealing the lack of appetite for accumulating shares from very large and influential institutional investors. Advancers led decliners by nearly a 3-to-1 ratio on the NYSE and by nearly a 2-to-1 ratio on the Nasdaq exchange. There were 62 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, one less than the total of 63 issues that appeared on the prior session. New 52-week highs solidly outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.
Strong Economic Data From China & Japan:
Overnight, a stronger-than-expected report was released from China which showed that fourth quarter GDP would top 10% and its full year economic growth would reach +8.3%, which also topped views. China, one of the fastest growing economies in the world, has enjoyed robust growth for much of this decade thanks to a favorable labor market, a pegged currency, and its strong competitive advantages. The China Construction Bank (CCB) released the report and cited rising exports and increased domestic consumption as the two primary sources for the stronger than expected forecast. The Japanese government released a stronger-than-expected economic report which showed that industrial output rose +2.6% last month. November’s reading was the the ninth consecutive monthly gain and beat the Street’s estimate for a +2.4% increase.