Jerry Samet
01-06-2018, 12:14 PM
The market put in another strong session yesterday. After opening higher the major averages spent the rest of the session working their way up. There was strength all around but the Nasd averages were the leaders. The COMPQ gained .83% while the SPX rallied .70%. All the major averages closed at their intraday trading highs as there was buying throughout the day. Volume was lower across the board, which is not unusual on a Friday, but you would have preferred to see higher volume on a strong rally day like yesterday. All the major averages made new all-time highs yesterday. Leading stocks were strong as well with the leaders index gaining 1.84% on the day on higher but slightly below average volume and closing high in its trading range. The index made new highs on both a closing and an intraday basis and did so on higher volume, positive action. Even the old index that was struggling so badly is on the verge of new highs. Friday’s action was very positive. The employment report came out and was much weaker than expected. The market shrugged it off and rallied strongly anyway. Experienced market participants know that the market’s reaction to news is more important than the new itself. Yesterday the market responded positively to news that could have caused a decline. The first week of the year showed very strong action. Not only did the major averages trade strongly but quality growth stocks were good performers and offered new buying opportunities. The market is clearly acting like it wants to go higher and we should see higher prices ahead. Jerry