Week-In-Review: Stocks Hit Fresh Record Highs

Byinfo@50park.com

Stocks Hit Fresh Record Highs

Stocks rallied sharply last week after the damage from hurricane Irma was much less than originally expected. Thankfully, in the 11th hour, Irma weakened considerably, made a last-minute turn, and skated up the west coast of Florida. The Dow, S&P 500, Nasdaq Composite, and Russell all ended the week higher as investors continued to shrug off all negative news and bid stocks higher. The market looks very strong and the fact that it refuses to fall, even on bearish headlines, is a bullish sign. Last week, North Korea fired another missile over Japan, Retail Sales missed estimates and inflation came in higher than expected, but stocks rallied. That reiterates an important point- that it’s not the news that matters, but how the market reacts to the news. Until, we see any signs of weakness, the bulls remain in clear control.

Mon-Wed Action:

Stocks rallied on Monday as the country remembered 9/11 and the market breathed a collective sigh of relief that Hurricane Irma weakened considerably and the damage was much less than expected. The market was also happy to see that North Korea did not fire another missile over the weekend. In China, inflation picked up after the producer-price index rose to 6.3% in August, beating the Street’s estimate for a gain of 5.5%. The stronger-than-expected reading came after Beijing announced new policies aimed at limiting capital outflows and continued pressure on crypto-currencies by banning them entirely from exchanges, while allowing over-the-counter trading to continue. Stocks edged higher on Tuesday as buyers continued to buy the latest dip. On Wednesday, the producer price index came in at +0.2%, missing estimates for +0.3%. North Korea decided to fire another missile over Japan which initially sent stock futures lower but then buyers showed up and stocks quickly recovered.

Thur & Fri Action:

Before Thursday’s open, the government said, the consumer price index came in higher than expected which was another sign that inflation may be increasing. Remember, higher inflation may put pressure on the Fed to continue raising rates. Stocks rallied on Friday even after retail sales came in at negative -0.2%, missing estimates for a gain of +0.1%.

Market Outlook: Bulls Are Back In Control

The bulls are back in control and the market remains very strong. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…

Similar Posts

  • Stocks Get Smacked on A Busy Wednesday

    Byinfo@50park.com

    For the most part, the major averages and leading stocks are pausing to digest their recent gains as investors make their way through the latest round of economic and earnings data. Until a clear picture can be formed as to how companies fared last quarter, one could easily expect to see more of this sideways action to continue. The market just began its 46th week since the March lows and the rally remains intact as long as the major averages continue trading above their respective 50-day moving average (DMA) lines. Trade accordingly.

  • ECB Raises Rates; U.S. Jobless Claims Fall & Another Earthquake in Japan!

    Byinfo@50park.com

    Market Action-Confirmed Uptrend
    The market is back in a confirmed uptrend after a modest (and healthy) -6% correction from its post-recovery highs. We find it bullish to see the mid-cap S&P 400 index and the small cap Russell 2000 index both hit fresh all-time highs! In addition, the Dow Jones Industrial Average vaulted to a fresh post-recovery high and the S&P 500 and Nasdaq composite are just shy of fresh 2011 highs. Finally, we are very happy to see a slew of high ranked stocks trigger fresh technical buy signals in recent weeks which suggests higher, not lower prices lie ahead. If you are looking for specific help navigating this market, please contact us for more information.
    Have you seen the “Wise Money Library”?
    Now, All In One Place, A Collection Of Strategies, Techniques and
    Resources That Professional Traders and Investors Use
    Have a Look: www.WiseMoneyLibrary.com

  • Stocks Rally As EU Debt Woes Ease

    Byinfo@50park.com

    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 sessions. The next important level to watch for the major averages are their respective 200-day moving average (DMA) lines. It is important to note that approximately 75% of FTDs lead to new sustained rallies, while 25% fail. In addition, every major rally in market history has begun with a FTD, but not every FTD leads to a new rally. Trade accordingly.

  • Stocks Edge Higher; Look Past Sour Housing Data

    Byinfo@50park.com

    Market Action- Market In A Correction; 28-Week Rally Ends
    All the major averages sliced below their respective 50 DMA lines on Thursday, March 10, 2011. Thursday, March 17, 2011 marked day 1 of a new rally attempt which means that the earliest a possible follow-through day (FTD) could emerge would be Tuesday, as long as Thursday’s lows are not breached. That said, the window is now open for a new FTD to emerge which will confirm the current rally attempt. However, if Thursday’s lows are breached, then the day count will be reset and odds will favor lower prices, not higher, will follow. It is important to note that the recent ominous action reiterates the importance of raising cash and playing strong defense until a new FTD emerges. If you are looking for specific help navigating this market, please contact us for more information.
    Don’t Miss Out!
    Have You Seen How Our New Site Can Help You!
    Visit: www.SarhanCapital.com Today!

Leave a Reply

Your email address will not be published. Required fields are marked *