Reveal The Signals Behind Us Stocks

After stepping out of the haze of the technology stock market, the trend of US stocks can be thriving. The rally is tempting. Investors will not be banned from the wind, and even the optimists will be "bluster". US stock Daniel market has arrived, but most analysts still think this is only a brief "habitual illusion" of US stocks.

By the end of May 12th, the Dow has reached a record high and a record high; the S & P 500 is at a record high, only 0.15 points from its all-time high. Technology shares and small cap stocks rose larger that day, and the index rose 1.8%, the biggest single day gain in January.

To this phenomenon, Hualong securities analyst told reporters: "the US stock rose on that day, in fact, there is no important data stimulation, but because of the sharp rebound in technology stocks and stock market growth stocks rebound, at present, it is not a bull market signal. After all, the turnover in the market is still very limited, and the pace of economic recovery in the United States is also unstable, and investors in the future market need to be cautious."

Growth stocks are changing.

The rebound of growth stocks, such as technology stocks that had been abandoned before, can be seen as an important promoter of US stocks' successive innovation.

Reporters noted that in the popular technology stocks, Twitter (33.39, -0.55, -1.62%) and Netflix (347.14, 1.69, 0.49%) rose 5.9% and 5.14% respectively, while Facebook (59.83, 0, 0%) rose by 4.5%. Amazon [micro-blog] (304.64, 304.64, 304.64) rose sharply, and there were apple (Google, micro-blog), Microsoft (micro-blog), Microsoft (-0.38, -0.20%), IBM[(-0.38, -0.20%) and so on.

Before that, the growth stocks such as "bear haunted" stocks were also outstanding. Among them, the car home (31.37, -2.98, -8.68%) soared 16.92%, Dangdang [micro-blog] (11.59, 0.52, 4.70%) and Qihoo 360 (80.34, -3.64, -4.33%) rose by over 8%, vip.com (146.48, -0.22, -0.15%) and the reunion era (54.59, -2.08, -3.67%) increased by more than 7%, and Baidu (micro-blog) (156.11, -3.77, -2.36%) and SouFun (156.11, -0.17, -3.77) rose more than 70%.

"I think these growth stocks have stabilised slightly. Some people think these companies are still overvalued, but their share prices have fallen enough, and there seems to be little room for further decline. At present, people try to take advantage of low absorption to make some stocks pick up. " OakBrook Investments LLC chief dealer Giri Cherukuri said.

The analysts also told reporters that yesterday, the Dow and the S & P 500 were closing the new high, mainly due to the sharp rebound of these previously slumped growth stocks. From the current situation, the growth stocks represented by technology stocks appear to be getting out of the slump and regaining the favor of investors.

Data showed that the Dow rose 112 points on the day, to 0.7% at 16695 points, to a record high for two consecutive trading days. It also closed third times in the year. The S & P 500 index rose 18 points to 1897 points, or 1%, and gained a record high in the year; the NASDAQ [micro-blog] (4130.17, 4130.17, 4130.17) composite index rose to a point of 0. Despite recent gains, the NASDAQ is still 18% lower than the historical high of 5048.62. The Nasdaq was set at the height of the Internet bubble in 2000.

On the same day, small stocks also rose better, but in the past few months, unlike small technology stocks, small investors have not been interested in investors for a few months. Russell 2000 small cap index rose 26 points to 1134 points, or 2.4%, but still 6% from the 1208.65 record set in March.

Reed Choate, portfolio manager of Neville, Rodie & Shaw, New York Asset Management Co, said the most serious stocks and stocks were the most resilience. "Recently, we have been studying high growth stocks that have fallen sharply recently, hoping to find attractive stock prices and buy them again."

As for the growth of stocks, insiders pointed out that they had fallen too fiercely, and the strength of the bottom line is obviously stronger than that of short selling. Yesterday's rebound is a normal phenomenon. With the success of corporate earnings and overvalued valuation, most of these growth stocks will shake up.

Bull signal launch?

The Dow's hat trick has continued to record a record high, and the S & P 500 is not lagging behind. The NASDAQ has rebounded sharply. In the face of such prosperity, optimists say that the bull market is coming.

Among them, Dow theory is the most typical. Charles Dow, the founder of the theory, has proposed that the transport index will often become the leading indicator of the bull market. In fact, when the Dow Jones (16715.44, 19.97, 0.12%) industrial average index reached a new high level, combined with the previous dow Jones Transportation Index's new high in March, the market classic prediction theory Dow's theory was once again verified, suggesting that the bull market of the US stock market will continue in March.

The Dow Jones transport index continued to be strong after its record highs in March, and Dow has also achieved a breakthrough in historical position in the near future. This is also Dow's theory satisfaction. bull market The important condition of the two big indexes at the same time hit a new high.

But foreign investment bankers hold different views. It is a big indicator that the bull market is coming, that is, the enlargement of the volume. And the economy is also continuing to improve. However, from the present point of view, these two indicators in the United States are still relatively weak, which is probably a flash in the pan.

Wall Street traders said yesterday's rise was mainly due to hedge funds' re buying of stocks sold this year instead of being betting on the future trend of the stock market by large investors. Brokerage firm Cowen and Co. David Seaburg, head of stock sales and trading, said about a large number of large mutual funds that bought and held large stocks. A sign of continued development in the past few weeks is that those funds that are only bulls are passive and light handed.

In fact, despite the recent record breaking of the three major stock indexes, the increase in US stocks this year is obviously not as good as last year. In 2013, the S & P 500 index rose 30%. So far this year, the S & P 500 index has only risen 2.6%, and the Dow has risen 0.7%.

At the same time, Wall Street analyst Rich Barry (Rich Barry) also released a research report yesterday that the heavily damaged stocks reversed their short selling situation last Friday and continued the retaliatory rebound in early trading yesterday. Short investors have temporarily lost their momentum, so that the power unit has finally found some support, but this support time is not sure.

Ridge Worth Investments Assets Configuration director Alan Gayle also said that the market is now adapting to the slowdown in the first quarter earnings growth of listed companies. Although the US economy is growing stronger, its economic growth is not up to standard.