If you trade the market, you should read Sam Collins of Investor Place. He presents a view point based on solid technical readings of the market.
This Artificial Rally Could End Badly for the Bulls
Caution is your watchword -- take profits in frothy stocks
By Sam Collins, InvestorPlace Chief Technical Analyst | Oct 23, 2013
A weak jobs report resulted in the belief that the Fed would stay with its easy-money policy until well into 2014, and stocks staged a moderate rally yesterday as a result.
The broad-based S&P 500 recorded its fifth consecutive advance, and the Dow Jones Industrial Average finished up 0.49%. The Dow is still 1.3% below its all-time high, but the more volatile indices — Nasdaq and the Russell 2000 (small-caps) — made new highs. Nasdaq made a 13-year high, and Russell made a new all-time high.
The September nonfarm payroll report, delayed by the government’s partial shutdown, showed that 148,000 jobs were added, below the expectation of 180,000.
High volatility and profit-taking dominated the session, with Netflix (NFLX) falling 9.15%, Priceline (PCLN) off 1.05%, Yelp (YELP) down 2.32%, and Facebook (FB) falling 2.18%.
At the close the DJIA had gained 75 points at 15,468, the S&P 500 rose 10 to 1755, and Nasdaq gained 10, closing at 3930. The NYSE traded 753 million shares and Nasdaq crossed 464 million. On the Big Board advancers beat out decliners by 2.7-to-1 and on Nasdaq advancers were ahead by just 1.2-to-1.
Read more from Investor Place >>
This Artificial Rally Could End Badly for the Bulls
Caution is your watchword -- take profits in frothy stocks
By Sam Collins, InvestorPlace Chief Technical Analyst | Oct 23, 2013
A weak jobs report resulted in the belief that the Fed would stay with its easy-money policy until well into 2014, and stocks staged a moderate rally yesterday as a result.
The broad-based S&P 500 recorded its fifth consecutive advance, and the Dow Jones Industrial Average finished up 0.49%. The Dow is still 1.3% below its all-time high, but the more volatile indices — Nasdaq and the Russell 2000 (small-caps) — made new highs. Nasdaq made a 13-year high, and Russell made a new all-time high.
The September nonfarm payroll report, delayed by the government’s partial shutdown, showed that 148,000 jobs were added, below the expectation of 180,000.
High volatility and profit-taking dominated the session, with Netflix (NFLX) falling 9.15%, Priceline (PCLN) off 1.05%, Yelp (YELP) down 2.32%, and Facebook (FB) falling 2.18%.
At the close the DJIA had gained 75 points at 15,468, the S&P 500 rose 10 to 1755, and Nasdaq gained 10, closing at 3930. The NYSE traded 753 million shares and Nasdaq crossed 464 million. On the Big Board advancers beat out decliners by 2.7-to-1 and on Nasdaq advancers were ahead by just 1.2-to-1.
Read more from Investor Place >>
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