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View Full Version : Leaders Index 9-5-19



Jerry Samet
09-05-2019, 06:21 PM
The market staged a strong rally today on news that there would be talks next month on trade with China. The major averages gapped open and rallied for about an hour. They then spent the rest of the session holding on to those gains. All the major averages finished high in their intraday trading ranges, a good sign. The Nasd averages were a little stronger with the COMPQ and the NDX gaining 1.75% and 1.86% respectively. The SPX rallied 1.30%. They all broke above their respective 50dma’s. In really good news volume was higher across the board. It was up by 25.92% on the New York and 13.55% on the Nasd. Leading stocks showed strength as well. The leaders index was actually lower by .33%. The reason was that two components of the index are solar stocks and the group was hit hard today. ENPH was off by 9.22% while SEDG fell 5.18%. This is why I allow only two stocks in any group in the leaders index. They were both hit and it did very limited damage to the overall index. Volume was high but lower than yesterday. The index is sitting right on its 9dma and 17dma and is consolidating. Today’s action was pretty much what I have been saying we wanted. The major averages broke solidly above their 50dma now support level and did it with higher volume. Quality growth stocks are acting a little better. Today’s rally was caused by good news and could be reversed by bad news. Right now it looks like the market has a good chance to make a run to the old highs. Jerry