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MARKET COMMENTARY - Wednesday, December 11, 2013
Stocks declined and the major averages ended with losses on Tuesday. The volume totals were reported mixed, lighter on the NYSE while volume was higher on the Nasdaq exchange. Breadth was negative as decliners led advancers by a 3-2 margin on the NYSE and 2-1 on the Nasdaq exchange. There were 44 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 a total of 56 stocks on the prior session. The list of stocks hitting new 52-week highs outnumbered new lows on the Nasdaq exchange and also on the NYSE. There were gains for 11 of the 17 high-ranked companies currently included on the Featured Stocks Page, a positive bias in that group of leading stocks versus the broader market's negative breadth.
The major averages took a breather as investors focused on budget negotiations and economic data. Congressional leaders negotiated a budget deal aimed at easing automatic spending cuts and avoiding a government shutdown in mid-January. On the economic front, another encouraging employment update intensified speculation that the Fed may begin tapering stimulus. The latest report showed job openings rose in October to the highest level since May 2008.
Overall, eight of the 10 S&P 500 sectors finished with losses. Utilities and telecommunications were the worst performing groups. Southern Co. (SO -1.4%) and Verizon Communications Inc (VZ -1.1%) both fell. The materials sector bucked the downtrend. Dow Chemical (DOW +2.5%) and Newmont Mining (NEM +2.5%) gained. In financials, JP Morgan Chase & Co (JPM +0.4%) and some other bank stocks were higher after all federal regulators voted to approve the Volcker Rule.
Treasuries rose and a government auction of three-year notes drew the strongest demand since February. The 10-year note was up 12/32 to yield 2.80% and the 30-year bond gained 23/32 to yield 3.83%.
The Market (M criteria) remains in a confirmed rally, however showing signs of distribution and waning leadership, yet the Dow and S&P 500 Index both remain perched near new all-time highs. As always, any new buying efforts should be selective. The CANSLIM.net Featured Stocks Page shows the most action-worthy candidates and their latest notes and a new 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. Watch for an announcement via email concerning the next WEBCAST.
PICTURED: The S&P 500 Index is perched near its 2013 high, up +26.37% year-to-date.
The Networking Index ($NWX -1.01%) led the tech sector lower while the Biotechnology Index ($BTK -0.66%) and Semiconductor Index ($SOX -0.28%) suffered smaller losses. Energy-related shares had a negative bias as the Oil Services Index ($OSX -0.78%) and the Integrated Oil Index ($XOI -0.24%) lost ground. The Bank Index ($BKX -0.28%) ended with a small loss while the Broker/Dealer Index ($XBD -0.00%) and the Retail Index ($RLX +0.08%) finished flat.
Charts courtesy www.stockcharts.com
PICTURED: The Gold & Silver Index ($XAU +4.01%) was a standout gainer on Tuesday, rebounding from new 2013 lows hit last week, meanwhile the broader market showed less decisive action.