Jerry Samet
03-17-2020, 06:26 PM
The market opened higher and after a short hesitation rallied nicely the remainder of the session. The major averages showed solid gains, but they were much smaller than yesterday’s losses. The COMPQ and the NDX rallied 6.23% and 6.46% respectively. The SPX gained 6.00%. All closed high in their intraday trading ranges. For a change volume was higher across the board. It gained 7.02% on the Nasd and 5.91% on the New York. This is the first time there has been higher volume on a rebound as opposed to the previous selloff. Leading stocks rallied as well with the leaders index gaining 4.31% on the day. The index closed high in its trading range, but like the major averages it made a new intraday low first. Volume was high but a touch lower than yesterday. The market staged a nice rally day today. The fact that we had higher volume for the first time on a rebound is good. The market reacted well to news of large stimulus programs being put forward. We have had a huge selloff very quickly and some sort of a snapback rally should occur at some point. There are tradable countertrend rallied in bear markets and we may well see one or two before a real bottom is in place. Right now staying on the sidelines is still the best thing to do. Jerry