subject: Stock Charts . Pt1 [print this page] Daily Stock Report for Thursday Morning, March 25, 2010 pt1
US stocks start selling at the open after Fitch downgraded Portugals credit rating one notch probably brought on the Oh no, here we go again response from most investors. Talking heads came on CNBC are saying that the Portugal situation isnt near as bad as Greece. But like I have been saying over the last few weeks there is going to be a little cautiousness wondering when the next shoe will drop.
Spain, Ireland and Iceland are also possible problem countries but the market is going to price in that possibility. There is still a lack of clarity on how Europe will support Greece and now Portugal although the odds are the market should still continue to be bullish and this test for the market probably wont amount to much.
The Dow30 was down 0.5%, Nasdaq Composite down 0.68% and S&P 500 down 0.55% after just hitting 18 month highs. The S&P 500 is still up about 6 percent year to date.
The economic data released today gave mixed signals with new home sales dropping to an unexpected record low and yet manufacturing goods demand rose for a 3rd straight month. Buying homes are more difficult to purchase plus the manufactured goods are lower priced items.
New home sales fell to lowest level since last July and the housing market could be heading for that anticipated double dip in prices and sales. The drop was fourth consecutive monthly decline and worst stats since 1963 in new home sales. This could have been influenced by the severe weather in the northeast USA.
Consider new long positions when market stops correcting.
Scalp of the Day:
BYD, Boyd Gaming was a buyout rumor today and gave a potential short profit potential of 4.7%. This is described in
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