Jerry Samet
06-09-2018, 12:03 PM
The market put in a pretty solid performance yesterday. After opening lower it looked like there would be a continuation of Thursday’s weakness. After going sideways for a while the major averages began to rally and continued into the close. They all closed in positive territory with the COMPQ higher by .14% and the SPX rallied .31%. All the major averages finished at their intraday trading highs, a sign of support. Volume was lower than Thursday across the board, which is not unusual on a Friday in the summer. Leading stocks had a solid session as well with the leaders index gaining .96% on the day. The index closed near the top of its trading range and made a new high on a closing basis, but not an intraday basis. The relative strength line of the index made a new high also. The market is acting well right now. It could have sold off on the uncertainty surrounding the G-7 summit but it didn’t. The strength in the relative strength line of the leaders index shows that quality growth stocks are leading the market higher. Stocks are breaking out of sound buying positions and producing worthwhile gains. Even better is the fact that as they move out of buy range new stocks are moving into buyable positions. This is the sign of a solid market. It is impossible to know how long this rally will last, but a friend of mine always said you should make hay while the sun is shining. It’s sunny now. Jerry