Weekly Investing Information April 30
The Week Ahead: The markets continue to shrug off bad economic news as GDP growth slowed to 1.3% in the first quarter led by weak housing and inflation hitting 4% annualized with higher energy prices. Investors should take caution (see special alert below) and stay as liquid as possible. Reports to watch are Monday's personal income and construction spending for March, Tuesday's auto sales, and Wednesday's March factory orders. Thursday brings 1st quarter productivity and jobless claims. Friday, another big employment report for April.
Stocks to Watch: Shares of Merck (MRK) look top heavy and fell after the FDA rejected its Arcoxia drug for the same concerns posed by the withdrawn Vioxx drug. Persistently high oil prices benefited Chevron (CVX) as it beat estimates for their bottom line. The airline sector took a hit as UAL Corp. (UAUA) was downgraded by a major brokerage firm based on a soft revenue outlook. Building Materials Holding Corporation (BLG) lost money and revenue dropped 36% as it continues to feel the negative effects of the weak homebuilding market.
Special Alert! The 111 year history of the DOW has now produced the longest stretch of time 50 months without a 10% correction. This little known and misunderstood fact has increased the probability of a steep pullback substantially as the previous 9 past durations of time without a correction have preceded declines averaging 26%. In fact the DOW looks to be completing a parabolic rise on a monthly chart into a dramatic crest in the months of May or June as evidenced by a string of 19 up days out of 21. History of this caliber is best heeded rather than ignored. Look for another period of increased downside volatility directly ahead.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
To view all of NobleTrading's historical newsletters, click here.Click here to open an account.
NobleTrading Direct Access Trading
email: info@nobletrading.com
phone: 877.872.3311
web: http://www.nobletrading.com
Stocks to Watch: Shares of Merck (MRK) look top heavy and fell after the FDA rejected its Arcoxia drug for the same concerns posed by the withdrawn Vioxx drug. Persistently high oil prices benefited Chevron (CVX) as it beat estimates for their bottom line. The airline sector took a hit as UAL Corp. (UAUA) was downgraded by a major brokerage firm based on a soft revenue outlook. Building Materials Holding Corporation (BLG) lost money and revenue dropped 36% as it continues to feel the negative effects of the weak homebuilding market.
Special Alert! The 111 year history of the DOW has now produced the longest stretch of time 50 months without a 10% correction. This little known and misunderstood fact has increased the probability of a steep pullback substantially as the previous 9 past durations of time without a correction have preceded declines averaging 26%. In fact the DOW looks to be completing a parabolic rise on a monthly chart into a dramatic crest in the months of May or June as evidenced by a string of 19 up days out of 21. History of this caliber is best heeded rather than ignored. Look for another period of increased downside volatility directly ahead.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
To view all of NobleTrading's historical newsletters, click here.Click here to open an account.
NobleTrading Direct Access Trading
email: info@nobletrading.com
phone: 877.872.3311
web: http://www.nobletrading.com
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