Holiday shortened week sees stock gains
Filed Under Market Commentary |
On Friday, NASDAQ hit a fresh 52 week high on lighter trade. Not a terrible surprise as the 4th of July vacationers were too busy soaking up the sun rather than driving volume. Holiday weeks are very ellusive when it comes to extracting meaningful analysis. But, we can not ignore another new 52 week high for the NASDAQ. Therefore we’ll remain on the side of the rising market.
A key thing to point out is the Relative Strength (RS) for the NASDAQ when pinned against the S&P 500 is hit a 52 week high as well. Very important to see confirmation in the form of relative strength. Before giddiness returns we did not have volume to really throw a party for the bullish case.
I posted a Point & Figure (P&F) of the NASDAQ here it is:
As you can see from this chart posted on 6/30/07 we show a 2680 price target. I’m not one for setting any type of price target but, the P&F charts do help to show where sentiment is.
The current P&F shows the bullish sentiment remains and the price objective of 2680.
From the option pits, CBOE Total Put/Call ratio stood at .86 at the end of trading. Other sentiment numbers:
Stocks Over their 200dma: 59.18%
Stocks Over their 50dma: 52.75%
Clearly, we do not have an extreme situation with stocks hanging above key support areas such as the 50dma & 200dma.
Moving onto a stock that I’ll be watching closely this week.
ATN - Atlas Energy Resources Inc
3 year growth rates:
EPS = 66%
Sales = 39%
The stock is within 1% of its 52 week high, let’s check out the chart (from TeleChart).
“…recurring patterns occur over and over because stocks are driven by humans and human nature never changes.” - Jesse Livermore
Market Speculator
Last 5 posts in Market Commentary
- Three 2009 Stock Market Predictions - January 4th, 2009
- US Dollar Woes? - January 1st, 2009
- Merry Christmas! - December 25th, 2008
- Stocks Slide on Low Volume - December 23rd, 2008
- Santa's Rally Still Intact; Stocks Continue Moving Higher - December 20th, 2008
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