Is This The Start Of A Real Selloff?; Major Stock Indexes Selloff Hard Closing Near Their LOD On Higher Volume
April 30, 2007 | Leave a Comment
Stocks started the day off very flat off the back of a bunch of economic data. Consumer spending rose .3% in the month of March which was the slowest since October and below forecast of a .5% increase. Personal income, however, beat estimates for a .5% gain, coming in at .7%. The core personal consumption index came in unchanged from the previous month dropping the YOY change from 2.4% to 2.1%. This is still above the comfort zone of the Fed, but it is much better than it could have been.
This news, however, did absolutely nothing for stocks and that was the them all day long until 2pm. What started at 2pm, after reviewing the daily action, can be called nothing but pure selling by institutional investors. A nasty selloff in the afternoon quickly sent stocks to their respective LOD. A boring day quickly changed into a disturbing one.
When it was finally over, the SP 600 led the way lower with a 1.7% swoon, the SP 400 followed with a 1.4% haircut, the Nasdaq lost 1.3%, the SP 500 and NYSE dropped .8%, and the DJIA held firm losing only .4%. This snapped the DJIA incredible record of 19 positive closes in the past 21 sessions (first time since 1929) and four day win streak. The Nasdaq gave back all the gains from the previous three days, also. The worst news, however, comes in the form of leading stocks. The IBD 100 and IBD 85-85 both lost 2%. To top it off, my portfolio, full of strong stocks lost 2.5%.
Stock Indexes Close Mixed And With Little Change, On Lower Volume; DJIA Up 19 Out Of Past 21 Sessions
April 28, 2007 | Leave a Comment
Despite amazing earnings reports from BIDU, MSFT, VSEA, MFW, DV, TEX, MTD, NOV, VLCM, NTGR, and DRIV, stock indexes decided to focus on the early morning GDP report and opened flat to slightly lower. GDP growth came in at 1.3% in the most recent quarter, down from economist 1.8% expectations and a four-year low. The poor GDP reading and the fact that YOY inflation is running at 2.2% definitely had a slightly negative impact. This poor reading helped the Euro hit a record high against the US dollar. The poor numbers were enough to keep the market choppy most of the day but the DJIA still hit another all-time high.
At the close the DJIA and the Nasdaq led the way higher with .1% gains, the SP 500 finished flat, the NYSE fell .1%, the SP 600 fell .3%, and the SP 400 led the way lower with a .4% drop. Leading stocks, in the form of the IBD 100, did not lead to the upside but they did not lead to the downside either, falling .2%. A respectable showing.
Incredible Earnings Fail To Inspire Stocks As A Choppy Day Ends With Stocks Mixed; DJIA Hits Another All-Time High
April 27, 2007 | Leave a Comment
It was a quiet day on the economic front, with only the initial jobless claims report, which saw claims fall by 20,000 to 321,000. However, when it came to earnings there was plenty of fire and most of it was bullish fire. Read more
Stock Indexes Hit All-Time Highs And Six Year Highs On Very Strong Volume; This Market Feels Like 1999 All Over Again, On A Much Smaller Scale, Obviously
April 26, 2007 | Leave a Comment
Stocks continued their recent run of powerful gains with another day of impressive price action. There were a number of economic numbers and earnings on the table today for investors to digest. The durable goods number for March came in with a 3.4% and February’s numbers were raised to 2.4% rise from a 1.7% rise. This along with some great earnings from AMZN helped gap stocks higher at the open. Read more
Stocks Close Flat On Heavier Volume; DJIA Leads A Day Of Possible Churning
April 25, 2007 | Leave a Comment
I had a medical appointment and other personal matters I had to attend to today. Therefore there will be no commentary tonight. However, I am posting the entire chat transcript from Tuesday to help you understand how I interpreted the day’s action. Read more
Afternoon Selloff Sends Stocks Lower As Most Indexes Close Near Their LOD; Nasdaq Finally Outperforms The Big Caps
April 24, 2007 | Leave a Comment
A very tight low-volatile intraday morning, despite some big M&A deals, gave way to an afternoon selloff as higher oil prices and bad news out of GM scared some investors. BCS announced it was acquiring ABN and AZN announced it was acquiring MEDI. However, this failed to inspire stocks at all. But later in the day oil jumped 2.8% to $65.89 and GM’s Vice Chariman Bob Lutz said mortgage ‘meltdown’ was going to hit auto sales. This did inspire stocks and sent them lower, with the big cap indexes closing near their LOD. Read more
Stocks End A Very Powerful Week With More Gains; Volume Picks Up On Options Expiration Day
April 24, 2007 | Leave a Comment
On Friday, stocks did what they have been doing all week, finding dip buyers that send the indexes higher into the close or at least higher than the open. A rash of good earnings from some big players like SLB GOOG AXP CAT and HON sent stocks higher at the open. But right after that very powerful gap higher, stocks started pulling back, as investors were quick to take some profits. However, once again, dip buyers came in and smart market makers did their best job to make shorting and put buying as painful as possible for the bears and sent stocks higher into the close. It was a very bullish options expiration.
At the close, the DJIA led the way with 28 out of 30 components up and hit all-time highs for the third day in-a-row, with a 1.2% gain. That makes it seven straight days and 15 out of the last 16 days this index has been higher. If that isn’t excessive, I am not sure what is. The SP 600 followed with a 1.1% gain, the NYSE was behind it with a 1% gain, the SP 500 rallied .9%, and the Nasdaq lagged with a .8% gain. It was another all-time high for the NYSE and six-and-a-half year highs for the SP 500 and Nasdaq. Other indexes hitting all-time territory include the Russell 2000, DJ Transportation Average, DJ Utility Average, and the SP 400. The SP 600 is a fraction away from all-time highs.
Stocks End A Very Powerful Week With More Gains; Volume Picks Up On Options Expiration Day
April 21, 2007 | Leave a Comment
On Friday, stocks did what they have been doing all week, finding dip buyers that send the indexes higher into the close or at least higher than the open. A rash of good earnings from some big players like SLB GOOG AXP CAT and HON sent stocks higher at the open. But right after that very powerful gap higher, stocks started pulling back, as investors were quick to take some profits. However, once again, dip buyers came in and smart market makers did their best job to make shorting and put buying as painful as possible for the bears and sent stocks higher into the close. It was a very bullish options expiration. Read more
Nasdaq (According to IBD) And NYSE Suffer Another Distribution Day; DJIA Leads Again
April 20, 2007 | Leave a Comment
Stocks gapped lower on the back of weak Asian markets that saw the Shanghai, Hang Seng, and Nikkei indexes all lose over 1.7%. The delay in the GDP release in China was the cause of all the Asian selling. After the Asian markets closed, GDP was announced to have come in 11.1% higher in the most recent Chinese quarter. This caused inflation and rate hike worries that spilled over into our markets. However, showing that you can’t keep this market down, dip buyers stepped in again and bid stocks higher until after 1pm where the indexes finally calmed down keeping a lid on the gains for all the indexes but the DJIA. Read more
Stocks End Mixed On Higher Volume; Nasdaq Suffers 3rd Distribution Day Since March 21st Follow-Through
April 18, 2007 | Leave a Comment
Stocks started the day off on a bit of a sour note, thanks to YHOO’s earnings release last night. YHOO dropped 12% today and had a very negative effect on the indexes in the early going. But proving that you can not stop these dip buyers, stocks rallied off the morning lows and stair-stepped higher all day long until the final hour where stocks pulled back some. When it was all said and done, stocks closed mixed, with the DJIA and SP 500 rallying for the fifth day in a row. Read more
