Stocks End April Lower for the First time Since November
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Weak economic news helped put a stop to the recent bounce off the lows as the market put in its first negative month since November 2011. Volume came in lower on the day despite the market closing lower. Certainly a positive sign, but we’ll need to see the market need to build upon the action ending last week. Mostly a boring market day overall with not much doing and we aren’t about to over analyze it. We’ll need to see this market continue to act proper to stay long.
There are certainly a few good things going well for this market. The NASDAQ (NASDAQ: NDAQ) finished out the week with solid gains and volume jumping each day. This was a bullish sign institutions were willing to pay up for positions, something you only see in solid uptrends. We’ll need to see this continue to stay with our buy signal on the market.
It is quite amazing the market has been able to keep a float for so long. We have been able to skirt any disaster, but have made things worse for us down the road. At the end of this year there are some $500bn taxes coming due that will significantly impact the economic standing of this country. As a nation the United States has chosen to continue to lay the burden on its younger generation to pay for the mistakes of the prior generation. The amount of debt outstanding will at some point become to0 great of a burden and hold this nation hostage until its liquidated. Pay attention, it will be a historic ride.
Certainly the price action of the market will give us an indication if we’ll see conditions worsening. Until such time we’ll continue on our current path and leave the worrying to someone else. Cut your losses short!
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