US stocks rose for the week ending September 24th, the fourth consecutive week of gains on the benchmark indexes.
The S&P 500 rose 2.1 percent this week to 1,148.67. The S&P is up 9.5 percent in September and closed above the 1130 resistance level twice in the past week.
It should be noted though that financials continue to underperform the broader markets. It will be difficult for the markets to move meaningfully higher without their participation.
Popularity: 21% [?]
The major indices closed on Friday in far better shape than might have been expected, suffering only modest declines for the week as a whole after Fed Chairman Ben Bernanke sparked a sustained rally on Friday with comments suggesting the Fed was willing to consider more muscular intervention in the economy to quicken the pace of recovery. We expect, however, that the rocky ride for investors is expected to continue in the coming week, as the glow from recent corporate earnings reports fades and the focus shifts to weak—and weakening—economic data.
Popularity: 16% [?]
A sluggish session on Friday capped the worst week for stocks since July 2. Volume was thin, and after fluctuating throughout the day, the market finished significantly lower. Mixed economic data did little to reassure investors, and retail earnings failed to meet expectations. The Dow Jones Industrial Average dropped 16.8 points (-0.16%) to finish at 10,303.15—marking its third consecutive losing session. The S&P 500 lost 4.34 points to close at 1079.27 (-0.40%), and the NASDAQ finished 16.79 points lower to end the day at 2173.48 (-0.77%). Consumer discretionary, technology, and health care stocks were among the worst performers in the S&P though utilities managed to finish higher. J.C. Penney, Nordstrom, Kohl’s, and Macy’s were especially hit hard, videogame makers Electronic Arts and Activision Blizzard remained flat, and both Google and Oracle ended lower. The CBOE Volatility Index, the standard gauge of anxiety in the market, rose above 26.
YTD Stock Market Performance
Much of this anxiety was prompted by the Federal Reserve’s increasingly negative view of the US economy and accumulating evidence—on the basis of jobless claims, retail sales numbers, and other traditional indicators—of a stalled recovery. A marginal increase in retail sales was confined principally to automobiles and gasoline station sales. Worries were compounded by weakness across the southern Euro zone, with investors anxious about how the situation in Europe might affect the global economy. The euro lost close to 4 percent of its value against the dollar as a result.
Crucially, all major indices are negative for the year. The NASDAQ is off 4.22 percent, the S&P 3.2 percent, and the Dow 1.2 percent. For the week, Verizon rose 1.5 percent, helping to buoy the Dow and S&P, if only slightly–though a 12.5 percent collapse in HP more than offset that advance. Cisco and Nvidia continue to perform miserably.
With few additional earnings reports due and extremely light trading volumes over recent sessions, it seems clear that investors should expect a sluggish market environment until after Labor Day. On Friday, for example, only 870 million shares changed hands on the NYSE—decliners leading advancers 8 to 7.
In Europe, the FTSE was up 9.38 to finish at 5275.44 (+0.18), the DAX was off 24.76 to close at 6110.41 (-0.4%), and the CAC 40 dropped 10.16 to end Friday’s session at 3610.91 (-0.28%).
In Asia, the Hang Seng and Nikkei were both unchanged, while the Shanghai SE Composite Index rose 31.225 to close at 2606.7 (+1.21%).
Gold was off 0.20 to finish at $1216.4 per ounce (-0.02%), while oil rose 0.20 to close at $75.59 per barrel (+0.27%).
Popularity: 14% [?]
On the whole, the week ending August 6 was far from smooth, though it began promisingly enough. Markets moved strongly upward at the start of the week, finishing above their 200-day moving average for the first time since June. Positive data from the ISM Manufacturing Index helped to build confidence. However, typically mixed economic data began to sour moods by the middle of the week. Sellers took over the market on Friday–though a late recovery ultimately pushed stocks back above the 200-day average.
Popularity: 13% [?]
July 11, 2010
The markets booked their largest one week gain in nearly a year, however, the volume was unimpressive. The volume is the fuel that powers the rally, so without a substantial pick up, the move to the upside will likely be contained. Overhead resistance remains at the lower of the 50 or 200-day moving averages – depending on the index.
Popularity: 15% [?]
Intermediate breadth and momentum indicators are negative and declining and therefore, any strength that may develop from the oversold state of the markets should be viewed as opportunity to sell. Most major stock indices are negative this year yet our system is up 33.42% YTD with 9 trades using the iShares Russell 2000 ETF (IWM) as measured at July 2nd, 2010. The S&P 500 is down 8.2% over the same period. Buy-and-hold investors will likely face many headwinds in the months to come.
Popularity: 22% [?]
Small and mid cap stocks continue to outperform on a relative basis. Market sentiment continues to be quite pessimistic with many major averages trading well below their 200-day moving averages. Although the markets are above their worst levels of the year, a surprisingly large percentage of the North American ETFs and global stock indicies we follow are trading at levels that signal concern. To be specific, 45% of the 64 ETFs and stock indicies we follow on a daily basis have 50-day moving averages below their 200-day moving averages (also known as a death cross).
Popularity: 20% [?]
June 14, 2010
The stock markets appear ready to challenge their respective 200-day moving averages – which are currently acting as technical resistance. A close above this resistance level will likely result in additional short covering, which could propel the market to even higher levels. Be mindful that this is a quadruple witching week which increases the probability of above-average trading volatility.
Popularity: 23% [?]
