by Sam Collins | September 11, 2013 2:36 am
For the second consecutive day, strong economic numbers from China and positive news regarding the containment of Syria’s chemical arsenal lifted stocks.
Three changes in the components of the Dow Jones Industrial Average also caught the focus of The Street. Goldman Sachs (GS), Nike (NKE) and Visa (V) took the place of Bank of America (BAC), Alcoa (AA), and Hewlett-Packard (HPQ).
Tuesday’s gains were made early in the day in response to the lead stories on China and Syria. But the market also gained strength because of the unlikelihood of the Federal Reserve paring back its bond purchase plan in September in light of the high numbers of unemployed workers.
At the close, the Dow Jones Industrial Average gained 128 points to 15,191, the S&P 500 rose 12 points to 1,684, and the Nasdaq gained 23 points at 3,729. The NYSE traded 773 million shares and the Nasdaq crossed 420 million. On both major exchanges, advancers exceeded decliners by 1.9-to-1.
The Dow Jones Transportation Average — the measure of the nation’s potential production — blasted through its near-term resistance line and 50-day moving average with hardly any resistance. And it accomplished the feat with a new buy signal from MACD.
The Materials SPDR (XLB) sprang from its 50-day moving average last week, breaking to a new high Tuesday.
This important sector is composed of heavyweights like Monsanto (MON), DuPont (DD), Dow Chemical (DOW), Freeport-McMoRan Copper & Gold (FCX) and PPG Industries (PPG).
Conclusion: The stock market’s current exuberance cannot be ignored if you are to be a successful investor or trader. And this is where technical analysis helps most — when it highlights almost inexplicable bullish breakouts in the midst of seeming chaos and fear.
In order to benefit from the current launch to new highs, you must focus solely on the market.
A friend recently reminded me, “I always keep stock market investing rule No. 1 in the forefront of my mind: In a bull market all the surprises are on the upside, and in a bear market all the surprises are on the downside.”
Tuesday’s explosive buying should leave no doubt that we are still in a powerful bull market.
To see a list of the companies reporting earnings today, click here.
For a list of this week’s economic reports due out, click here.
Source URL: http://investorplace.com/2013/09/daily-stock-market-news-this-bull-is-likely-to-keep-surprising-investors/
Short URL: http://invstplc.com/1dcdXOx
Copyright ©2016 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.