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  • Day 8: Both Stocks & The US Dollar Rally

    Looking at the market, the major averages closed with modest gains on Wednesday as the major averages consolidate their recent move. As long as February 5th lows are not breached the window remains open for a new follow-through day (FTD) to emerge. A new follow-through day will confirm the current rally attempt and will be produced when one of the major averages rallies at least +1.7% on higher volume than the prior session as a new batch of leaders breakout of sound bases. However, if the February 5, 2010 lows are breached then the day count will be reset and a steeper correction may unfold.
    It is also important to see how the major averages react to their respective 50-day moving average (DMA) lines which were support and are now acting as resistance. Until they all close above that important level the technical damage remaining on the charts is a concern. So far, the market’s reaction has been tepid at best to the latest round of economic and earnings data which remains a concern. Remember that the market remains in a correction until a new new follow-through day emerges. Until then, patience is paramount.

  • Another Strong Week On Wall Street

    Market Action- Confirmed Rally; Week 25 Ends
    It was encouraging to see the bulls show up and defend the major averages’ respective 50 DMA lines in November as this market proves resilient and simply refuses to go down. From our point of view, 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. However, it is important to note that stocks are a bit extended here and a pullback of some sort (back to the 50 DMA lines) would do wonders to restore the health of this bull market. If you are looking for specific high ranked ideas, please contact us for more information.
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  • New Rally Confirmed; Stocks Close Above 200 DMA Line

    Friday, June 18, 2010 Stock Market Commentary: Stocks ended higher this week, confirmed their latest rally attempt, and the benchmark S&P 500 index and the Dow Jones Industrial Average both closed above their respective 200 DMA lines which is an encouraging sign. Volume totals were reported higher on both major exchanges due to Friday’s quadruple witching day. Advancers led decliners by…