This week, both DOWS and NASDAQ reach their high with earning report story and buyout stories. DOWS closes above 13200 with light volume on Friday, signing a weakness of the pace going forward. Especially those traditional market leaders such as GOOG, AAPL didn't perform, lagging behing the bullish trend recently. In market sentiment, the reading slightly get into " sell " domain ,the first time after its pull back from the end of Feb. The reading has been used by us to monitor the market quite a while. Currently the slow stochastic reading still remain in overbought reading, together with money flow slowing down. All these signs warn us that market will need to get into a breathe era.
From the Economy side, today's job report data gave out a bad sign into the US job market. The easing of job creating is the lowest since 2002. This maybe good for the market in a short term but may not be good sign for long term market growth. Elsewhere, first-quarter productivity rose 1.7%, topping views. Unit labor costs, the report's inflation component, grew a smaller-than-expected 0.6%. The ISM services sector index climbed to a stronger-than-expected reading of 56.0 for the month.
Many people argue that current market performance has a big skew relative to the economy growth . We count such kind of apperance onto the reason of enough liquidty from the hedge fund. As reported, the JPM continues to support the hedge funds with their capital source, so does GS. With such kind of liquidity around, we won't be surprise to see market outpace the GDP growth in the US.
On Sector Views, Healthcare, Transportation and Energy sector continue to show their strength as leader sector of the market. The hike in gasoline and crude price should help those refinary and drill corporation as well. Several stocks outperform .e.g. AEIS, VLO, BTJ. This trend could continue as the demand raise starting from the hot driving season after May 15. Pls pay attention to the article we mentioned before about the hedging into oil sector. Transportation sector such as BNI, KUS all gain through this week. Heathcare sector aslo lead the market at the beginning of this week but flat at the second part.
On Stock view, PTR, ICE, RIO , those stocks related to oil and metal reverses from their recent downtrend , which I believe should deserve further focus. But with the possible easing in the market, we will recomend vigilant action taken.
Good luck next week!
4 comments:
Wow, good one, lots of information. It's a lot of work behind that, many thanks!
hehe, welcome ah.
the consolidation may take quite a few days, IMHO the whole may and june would be the toughest time during this year.
The Dow Jones index may retest 20EMA and 50 EMA support, and nasdaq may also lose upper trend support since big capital company finished their er .
However, some energy related company would attract my eyeball these days. Including PTR,CEO,ESV,HNR.
now I think you also gain a lot of progress :)
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