Similar Posts

  • 46 Week Rally Ends; Market In A Correction

    The major averages and leading stocks are now in a correction as the major averages sliced and closed below their respective multi month upward trend lines and their 50 DMA lines on Friday. So far, the market’s reaction has been tepid at best to the latest round of economic and earnings data. The recent series of distribution days coupled with the deleterious action in the major averages suggests large institutions are aggressively selling stocks. The market just ended its 46th week since the March lows and we are now waiting for a new follow-through day to be produced before resuming any buying efforts. Until that occurs, patience is key, and the path of least resistance is down. Trade Accordingly.

  • Stocks End Mixed On Busy News Day

    Overall, the action since this rally was confirmed on the September 1, 2010 follow-through day (FTD) remains healthy. Looking forward, the window is now open for disciplined investors to begin carefully buying high-ranked stocks again. It was encouraging to see a flurry of high-ranked leaders trigger fresh technical buy signals and break out of sound bases in recent weeks. All the major averages rallied above their respective 200-day moving average (DMA) lines this week, which is another encouraging sign. The next important resistance level the major averages are facing is their respective summer highs.

  • Where's The Volume?

    Market Action- Week 3 Of Correction
    It is encouraging to see the bulls show up this week and defend the 50 DMA lines for the major averages. Wednesday marked Day 1 of a new rally attempt for the Dow Jones Industrial Average and the benchmark S&P 500 which means the earliest a possible FTD could emerge for those indices is Monday. Meanwhile, the tech-heavy Nasdaq composite and small-cap Russell 2000 indexes marked Day 10 of their respective rally attempts which means the window remains open for either of those two indices to score a proper FTD. Trade accordingly.

  • Stocks Pullback To Digest Tuesday's Strong Move

    Wednesday, April 18, 2012 Stock Market Commentary: Stocks and other risk assets were mostly lower on Wednesday as investors digested Tuesday’s strong move and the latest round of mixed earnings data. As earnings continue to be released in droves, it is paramount that we not only pay attention to the actual numbers but how the…

  • Dow Closes Below 50 DMA Line on Tepid Earnings & Economic Data

    The major averages and leading stocks are pulling back to digest their recent gains as investors make their way through the latest round of economic and earnings data. So far, the market’s reaction has been tepid at best which puts serious pressure on the current rally. Until a clear picture can be formed as to how companies fared last quarter, one could easily expect to see more of this sideways to lower action to continue. The market is in the middle of its46th week since the March lows and the rally remains intact, albeit under serious pressure from our point of view. The Dow Jones Industrial Average sliced and closed below its 50 DMA line on heavy volume for the first time since October which is an ominous sign. The Nasdaq and the S&P 500 closed above their respective 50 DMA lines which, in the near term, is a healthy sign. Now that the market is clearly under pressure one would be wise to adjust their exposure accordingly.