Week-In-Review: Stocks End Mostly Higher As Tax Cut Passes House

Byinfo@50park.com

What Is This “Dip” You Speak Of

The market remains very strong. The fact that the latest pullback literally only lasted one week speaks volumes to how strong the bulls are right now. The big news last week came after the House passed the tax cut bill. Now, the bill goes to the Senate where it will face some opposition but, in my opinion,  most likely get passed in some form. The fact that the bulls showed up (again) last week illustrates how strong the market is right now. Remember, in bull markets, weakness should be bought, not sold.

Mon-Wed Action:

Stocks fell on Monday after General Electric (GE) cut its dividend by 50% and announced a massive plan to restructure itself. On Tuesday, stocks were lower as investors continued to digest the latest round of earnings data. Overnight, China released some disappointing economic data on retail sales, industrial output and fixed asset investment growth which hurt global stocks. All of those reports missed expectations. In the U.S., the producer price index rose +0.4% in October which was stronger than the Street’s estimate for a gain of +0.1%. Stocks fell on Wednesday after the International Energy Agency slashed its outlook for oil demand. The IEA cut its growth target by 100,000 barrels per day for 2017 and 2018. Crude oil futures and a slew of energy stocks fell and dragged the market lower.

Thur & Fri Action:

On Thursday, the Dow jumped nearly 200 points after the House passed the tax reform bill and Cisco and Wal-Mart reported stronger-than-expected earnings. In fact, Wal-Mart gapped up and hit a fresh all-time high after reporting earnings which bodes well for retail stocks and the Q4 holiday shopping season. After the close, Tesla (TSLA), unveiled its new electric truck and surprised the Street when it reported a new very fast roadster. On Friday, stocks were relatively quiet as investors digested a busy week.

Market Outlook: Bulls Are Strong

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

  • 28-Week Rally Ends; Day 1 Of New Rally Attempt

    Byinfo@50park.com

    Market Action- Market In A Correction; Week 28 Ends
    All the major averages sliced below their respective 50 DMA line on Thursday, March 10, 2011. All except for the tech-heavy Nasdaq composite managed to repair that damage and close above that important level on Friday. Friday, March 11, 2011 marked Day 1 of a new rally attempt which means the earliest a possible FTD could emerge would be Thursday, providing Friday’s lows are not breached. If, however, Friday’s lows are breached, the Day count will be reset and odds will favor lower prices will follow. The market is in a correction which underscores 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 Our New Site?

  • Stocks Fall As Dollar Slides

    Byinfo@50park.com

    Market Outlook- Rally Under Pressure
    From our point of view, the market rally is under pressure which suggests caution is paramount at this stage. Looking forward, the next level of support for the major averages are their respective 50 DMA lines and resistance is their 2011 highs. The rally remains in tact as long as support holds. If you are looking for specific help navigating this market, please contact us for more information.
    Want Better Results?
    You Need Better Ideas!
    We Know Markets!
    Learn How We Can Help You!

  • Day 15: Stocks Close Below Resistance

    Byinfo@50park.com

    Friday, February 26, 2010 Market Commentary: Stocks closed with modest gains on Friday which marked the 15th day of the current rally attempt. Volume, a critical gauge of institutional demand, was mixed compared to Thursday’s levels; higher on the Nasdaq exchange and lower on the NYSE. Advancers led decliners by a 12-to-17 ratio on the NYSE but trailed by 13-to-14 rato on…

  • 200 DMA Line Is Under Attack!

    Byinfo@50park.com

    Market Outlook- Market In A Correction
    The latest action in the major averages suggests the market is back in a correction as all the major averages are flirting with their respective 200 DMA lines. Our longstanding clients/readers know, we like to filter out the noise and focus on what matters most: market action. That said, the recent action suggests caution is paramount at this stage until all the major averages rally back towards their respective 2011 highs. If you are looking for specific help navigating this market, please contact us for more information.
    Stock Market Research?
    Global Macro Research?
    Learn How To Follow Trends?
    See How We Can Help You!

  • Stocks Testing Support (2011 Lows)!

    Byinfo@50park.com

    Market Outlook- Rally Under Pressure:
    The major averages confirmed their latest rally attempt on Tuesday, August 23, 2011 which was the 11th day of their latest rally attempt. It is important to note that all major rallies in history began with a FTD however not every FTD leads to a new rally (i.e. several FTDs fail). In addition, it is important to note that the major averages still are under pressure as they are all trading below their longer and shorter term moving averages (50 and 200 DMA lines) and are all still negative year-to-date. Our longstanding clients/readers know, we like to filter out the noise and focus on what matters most: market action. This rally will fail if/when several distribution days emerge or August’s lows are breached. Until then, the bulls deserve the benefit of the doubt. If you are looking for specific help navigating this market, please contact us for more information.

  • Stocks Tank on EU Downgrades & Goldman Testimony

    Byinfo@50park.com

    Tuesday, April 27, 2010 Market Commentary It is important to note that the major averages have been steadily rallying since early February and a pullback of some sort should be expected. Tuesday marked the latest distribution day since the rally was confirmed on the March 1, 2010 follow-through day (FTD). According to the paper, there are 7 distribution days for the NYSE, 6 for the S&P 500, 5 for the Dow, and 2 for the Nasdaq. This puts subtle pressure on this 9-week rally.

Leave a Reply

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