Week-In-Review: Stocks Quiet Ahead Of The Hurricane

Byinfo@50park.com

Stocks Quiet Ahead Of The Hurricane

The stock market remains very strong. The major indices slid last week but were quiet as the country waits for Hurricane Irma to hit Florida. and parts of the East Coast. Stepping back, the action remains healthy as the market continues to trade just below record highs and sellers remain at bay. From where I sit, the market action remains bullish. The fact that the market refuses to fall in any significant fashion illustrates how strong the bulls are right now. Additionally, it is bullish to see volume dry up as the Dow, S&P 500 and Nasdaq sit on their respective 50 day moving average lines. It is important to note that the Transports and the small-cap Russell 2000 continue to under-perform their peers which is not ideal. Stepping back, until we see any heavy volume selling, the bulls remain in clear control.

Mon-Wed Action:

Stocks were closed on Monday in observance of the Labor Day Holiday. Stocks fell hard on Tuesday tensions spread regarding North Korea firing another missile. In the U.S., Factory Orders fell -3.3%, missing estimates for a decline of -3.2%. Stocks bounced back on Wednesday after the bulls showed up and defended the 50 DMA line for the Dow and S&P 500. Politically, two top Democratic leaders said they would support President Trump’s debt ceiling extension and government funding plan. Separately, Federal Reserve Vice Chair Stanley Fischer resigned due to personal reasons. Economic data was mixed. The PMI services index came in at 56, missing estimates for 56.9. Separately, the ISM non-manufacturing index came in at 55.3, missing estimates for 55.8. The Fed’s Beige Book came out and showed Modest to moderate economic growth and offered a different assessment on the impact of Hurricane Harvey. Finally, the market shifted its focus to Hurricane Irma. Sir Richard Branson survived the Hurricane holed up in his concrete wine cellar.

Thur & Fri Action:

Stocks were relatively quiet on Thursday and Friday as millions of people left Florida ahead of Hurricane Irma. The price of Bitcoin plunged after China’s Central Bank may shut down the exchanges. Shares of Target fell after the retail giant said it will slash prices on a lot of items in an attempt to attract shoppers. Shares of Equifax (EFX) plunged over 13% on Friday after the company had a massive data breach which could impact 140 million people.

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

  • Day 1 Of A New Rally Attempt

    Byinfo@50park.com

    Stocks took a heavy beating on Thursday, sending all the major averages below their respective 200 DMA lines on heavy volume. Stocks ended higher on Friday after the S&P 500, Russell 2000 and Nasdaq Composite all shook out below their May 6, 2010 (flash crash) low. For the week, all the major averages suffered tremendous losses and fell over -10% from their late April highs, which is the first time a pullback of that magnitude has occurred since the March 2009 low. The fact that the market rallied on Friday technically marked Day 1 of a new rally attempt which means the earliest a proper follow-through day (FTD) could occur would be Wednesday, providing Friday’s lows are not breached. However, if at anytime, Friday’s lows are breached, then the day count will be reset. What does all of this mean for investors? Simple, the market remains in a correction which reiterates the importance of adopting a strong defense stance until a new rally is confirmed. Trade accordingly.

  • Stocks Rally On A Slew Of Economic Data

    Byinfo@50park.com

    Market Outlook- Market In A Confirmed Uptrend:
    The last week of June’s strong action suggests the market is back in a confirmed rally. As our longstanding clients/readers know, we like to filter out the noise and focus on what matters most: market action. That said, the action remains bullish until the major averages and leading stocks violate their respective 50 DMA lines. Until then, the market deserves the bullish benefit of the doubt. Barring some unforeseen event, investors will likely be focusing on the jobs market this week and then turn their attention to Q2 earnings. If you are looking for specific help navigating this market, please contact us for more information.
    Stock Market Research?
    Global Macro Research?
    Want To Follow Trends?
    Learn How We Can Help You!

  • Week-In-Review: Stocks Bounce Back After Mid-Week Sell-Off

    Byinfo@50park.com

    Stocks Bounce Back After Mid-Week Sell-Off Last week, the market complexion changed and is a little weaker which means a defensive stance is warranted in the short-term. One of the hallmarks of a bull market is to see the market brush off nearly all negative news and just keep racing higher. Since the election, that…

  • Strong Housing & Earnings Lift Stocks!

    Byinfo@50park.com

    Market Outlook- Uptrend Under Pressure:
    The last week of June’s strong action suggests the market is back in a confirmed rally. As our longstanding clients/readers know, we like to filter out the noise and focus on what matters most: market action. That said, the current rally is under severe pressure as investors patiently await earnings season and continue to digest the latest economic data. Until all the major averages violate their respective 50 DMA lines on a closing basis, the market deserves the bullish benefit of the doubt. If you are looking for specific help navigating this market, please contact us for more information.
    Stock Market Research?
    Global Macro Research?
    Want To Follow Trends?
    Learn How We Can Help You!

  • Stocks Rally On Disconcerting Economic Data

    Byinfo@50park.com

    Thursday, January, 14, 2010 Market Commentary: Stocks edged higher after weaker than expected economic data was released. Volume was reported slightly higher than the prior session’s totals on the NYSE and about even on the Nasdaq exchange, which suggested large institutions were buying stocks. Advancers led decliners by nearly a 11-to-8 ratio on the NYSE and by a 16-to-11 ratio on the…

Leave a Reply

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