CANSLIM.net Help Lines
1-888-CAN-SLIM
954-785-1121

 

Get this daily commentary delivered straight to your email as soon as it is posted each day!
E-mail Address :
We never share your email. Read our privacy policy

CLICK HERE FOR DETAILS ABOUT
THE FREE CANSLIM.NET DAILY MARKET COMMENTARY


 MORNING MARKET COMMENTARY   - Thursday, October 02, 2014  
Adam Sarhan Damaging Losses Hurt Near-Term Market Outlook
Kenneth J. Gruneisen, Founder and Contributing Writer, www.CANSLIM.net

The major averages kicked off October by suffering damaging losses on Wednesday. The Dow Jones Industrial Average, S&P 500 Index, and Nasdaq Composite Index collectively slumped well below their respective 50-day moving average (DMA) lines. The volume totals were reported mixed, lighter than the prior session total on the NYSE, but higher on the Nasdaq exchange, a sign of more worrisome selling pressure coming from large institutional investors.  Breadth was negative as decliners led advances by more than 3-1 on the NYSE and nearly 4-1 on the NASDAQ exchange. There were only 6 high-ranked companies from the CANSLIM.net Leaders List that made new 52-week highs and appeared on the CANSLIM.net BreakOuts Page, down from the prior session total of 17 stocks. The new 52-week lows list expanded again and solidly outnumbered new 52-week highs on the NYSE and on the Nasdaq exchange. There were losses for all 10 high-ranked companies currently included on the Featured Stocks Page. Distributional action raised concerns while leadership (stocks hitting new 52-week highs) waned and a deteriorating market (M criteria) environment was repeatedly noted in this commentary.  Remember that the fact-based investment system prompts disciplined investors reduce market exposure by selling any faltering stocks during rough market periods.

 

PICTURED: The S&P 500 Index fell 26 points to 1,946, slumping well below its 50-day moving average (DMA) line.

The NASDAQ dropped 71 points to 4,422 and the Dow declined 238 points to 16,804. Stocks finished lower for a third day amid a batch of mostly disappointing economic data. The ISM's manufacturing index dropped in in September from the highest level since early 2011 while euro zone factories expanded at the slowest pace in 14 months. A separate report showed construction spending fell by a more than anticipated 0.8% in August. On the upside, ADP reported companies added 213,000 workers to private payrolls in September, topping estimates for an increase of 205,000.

Nine of the 10 sectors in the S&P 500 retreated. Materials and industrials were the worst performing groups as Dow Chemical (DOW -3.8%) and General Electric (GE -1.8%) fell. Utilities advanced as investors sought out defensive issues, and Exelon (EXC +1.6%) posted a gain. Automakers were also in focus. The new General Motors Company (GM +1.7%) posted better-than-expected monthly sales figures , but Ford (F -1.3%) fell as it missed analyst estimates.

Treasuries staged a rally. The 10-year note rose 27/32 to yield 2.39%. The 30-year bond gained nearly two full points to yield 3.10%.

The CANSLIM.net Featured Stocks Page shows the most action-worthy candidates and their latest notes and a Headline Link directs members to the latest detailed analysis with data-packed graphs annotated by a Certified expert along with links to additional resources.  The Premium Member Homepage includes "dynamic archives" to all prior pay reports published.

The Oil Services Index ($OSX -2.52%) and Integrated Oil Index ($XOI -1.85%) both suffered large losses and led broad based declines on Wednesday. Financial shares were a negative influence on the major averages as the Broker/Dealer Index ($XBD -1.41%) and the Bank Index ($BKX -1.17%) fell.  The tech sector saw unanimous losses from the Networking Index ($NWX -1.31%), Biotechnology Index ($BTK -1.27%), and the Semiconductor Index ($SOX -2.37%). The Gold & Silver Index ($XAU -0.12%) held its ground.

Charts courtesy www.stockcharts.com

PICTURED: The Retail Index ($RLX -1.23%) violated its 50-day moving average (DMA) line with a damaging loss, sinking near its July highs.

Click Here to TELL-a-FRIEND about CANSLIM.net - if you know someone who might appreciate this report or find the features on our website useful.  As CANSLIM.net's subscriber base grows, we are able to offer more great resources to help you become a more successful investor.   We appreciate any feedback members may wish to send via the inquiry form here.
THESE ARE NOT BUY RECOMMENDATIONS!  Comments contained in the body of this report are technical opinions only. The material herein has been obtained from sources believed to be reliable and accurate, however, its accuracy and completeness cannot be guaranteed. CANSLIM.net is not an investment advisor, hence it does not endorse or recommend any securities or other investments. Any recommendation contained in this report may not be suitable for all investors and it is not to be deemed an offer or solicitation on our part with respect to the purchase or sale of any securities. All trademarks, service marks and trade names appearing in this report are the property of their respective owners, and are likewise used for identification purposes only.

This report is a service available only to active CANSLIM.net StockNews Members. You may opt-out of receiving report notifications at any time.  Questions or comments may be submitted by writing to CANSLIM.net 665 S.E. 10 Street, Suite 201 - Deerfield Beach, FL 33441-5634 or by calling 1-800-965-8307 or 954-785-1121.

 

The recommendations made by CAN SLIM® Certified individuals are their own and may not be attributed to the CAN SLIM® Certification Program, William O'Neil + Co., Investor's Business Daily or their affiliates. The CAN SLIM® Certification indicates only that the individual has successfully completed the CAN SLIM® Certification Program. CAN SLIM®, William O'Neil + Co., Investor's Business Daily and any of their affiliates are in no way responsible for any loss or damage caused as a result of the services provided by these individuals.

Copyright © 1996-2014 Gruneisen Growth Corp. d/b/a www.canslim.net  All rights reserved. Protected by the copyright laws of the United States and Canada and by international treaties.  The names "CANSLIM" and "CAN SLIM®" are service marks and trade names of Investor's Business Daily, Inc., a California corporation, and are used by Gruneisen Growth Corp., a Florida corporation, under license. GGC is solely responsible for the operation of and opinions expressed in this Website. Daily Graphs® and Daily Graphs Online® are registered trademarks of William O'Neil + Co. Incorporated and are used with permission.

Privacy Policy | Terms of Use | Contact Us