Bears continue to be frustrated as the market hits new highs
Notching another 52 week high the NASDAQ added to Monday’s gains led by AAPL stock as volume volume rising across the board. AAPL the largest stock in the NASDAQ hit another new high as investors continue to rush to own the stock. The market was handed some good news from the NFIB Small Business Optimism and IBD/TIPP Economic Optimism indexes as both rose better than expected. The market appeared to be settling into a narrow range early on digesting recent gains. Buyers had other plans as late afternoon buying continued into the close. Another great day as the NASDAQ closed on its high of the day as volume creeps above Monday’s levels.
AAPL stock led the way on the NASDAQ followed by AMZN stock and QCOM stock. On the down side TEVA stock was hit hard after its earnings report this morning. The stock did find support intraday, but the loss was great enough to put pressure on the NASDAQ. The day was owned by AAPL and AMZN stocks with both putting in impressive days. While AAPL stock hit a new 52 week high, AMZN stock was able to recapture its 50 day moving average on above average volume. After earnings it appeared investors were fleeing AMZN stock, but buyers have come back supporting the stock. A very good sign for this market seeing the support for leading stocks.
It appears this market is gearing up for hyperdrive as we have overcome the selling pressure put on the market in late January. Stocks showing tremendous selling pressure during the sell-off have come back. Those being stocks like AMZN, VMW, APKT showed cracks in their armor, but have been able to climb out of their ruts. Action like this is very supportive of a market with underlying buyers. Despite the incredible bullishness this market can and has a high probability of continuing its trend.
The bond market continues to sell off as yields continue to push higher. It is clear investors are demanding higher yields, why? It is anyone’s guess to the precise reason, but yields tend to indicate inflation fears. Ben Bernanke continues to pump liquidity into the market in the tune trillions the supply of dollars will force price inflation. As money flows out of Bonds it will need to find a home. Follow the price action and you’ll find where the money is heading! As far as stock market tips, stick with price and volume action of your leading stocks.
Remember to always cut your losses short before they burden your portfolio.
