Monday February 1, 2010
Stocks rallied on Monday continuing the recent string of a strong start to the week before the bears show up and send stocks lower by Friday. Volume patterns have turned bearish recently which suggests large institutions are aggressively selling, not buying stocks. New 52-week highs still continue to outnumber new 52-week lows on the NYSE and on the Nasdaq exchange which is a welcomed sign.
Economic Data Is Healthy:
Stocks rebounded from a three-month low and marked Day 1 of a new rally attempt after a series of stronger than expected economic data points were released. Manufacturing reports in the US, Europe and China all showed that the global economic recovery is accelerating which helped allay concerns that it was running out of steam. The US dollar fell which helped a slew of dollar denominated assets (mainly stocks and commodities) rally. The Institute for Supply Management said that US manufacturing enjoyed its largest gain since August 2004 which was a welcomed sign.