US market review

Discussion in 'Trading' started by Broco, May 4, 2009.

  1. Broco

    Broco

    The week closed with a slight increase, IBD 100 îutrode the market
    Review of the US market by May 4

    On Friday the week closed with a moderate increase, low-volume stocks slightly grew.

    On Friday NYSE was leading and marked 1% of increase which happened due to the rise of oil and gas stocks. Dow and S&P 500 added 0.5 %; Nasdaq closed almost without changes - 0.1 %.

    NYSE volume decreased for 25 % and Nasdaq - for 23 %.

    The US market had a few of incentives for movement because the most part of major international exchanges were closed for 1 May holiday.
    The growth of University of Michigan consumer confidence index and a number of stabilization signs in industry served as new indications for market proving that the economy started consolidating.
    The same factors seem to influence rise of oil prices which grew for 2.08$ up to 53.20$ per barrel. This 5-week’s peak point in oil prices caused growing of power-generating sector.

    Oil-related sectors were among leaders of the day. But essentially there is no one shares pretending to be the market leader. Many of them are just recovering after huge losses of recent months.

    In general, leaders achieved good results.

    Chinese company Longtop Financial (LFT), software engineer for business purposes, added 2.54 and reached 26.20. The share broke through the key level 26.09 which is the entry point after bounce from 10 week’s moving average.

    VistaPrint (VPRT), online supplier of services and products, grew for 2.91 up to 37.26 in large volumes. The company reported on late Thursday and its forecast for year left analysts’ expectations behind.

    Beacon Roofing Supply (BECN) increased sharply for 1.21 up to 17.11, also in active trading, broke through 15.15 level – purchase point.

    But the member of IBD 100, Buffalo Wild Wings (BWLD), fell for 2.22 down to 36.82. This is their third decrease in succession in large volume.

    The upward market trend is still safe. Nasdaq registered its 8th rising week in succession though for modest 1.5 %.

    Other major market indices demonstrated the dynamics similar to its behavior within 7 recent weeks.

    The last week Nasdaq became the first market index among growing indices which broke 200-days’ moving average.

    Two months of rapid growth can give a respite to May.

    IBD 100, the index of the best market shares, increased for 2.8 % within the week. It is a positive consolidation after the period of underrun from other indices.

    As a rule the best shares of rise won in bull rally.

    Though anomalous rally has its historical precedents. Our research of post-crisis bull rally of 1932, 1938, 1975 and 2002 year show that the best leaders in these rallies appeared after the general market growth had begun.

    My opinion remains the same: the market growth within the last two months significantly lost contact with actual economy which is still down. Before the growth continues at least one week of decline is required.