Jerry Samet
10-12-2020, 06:27 PM
The market started off the week on a strong note. The major averages opened higher and rallied for most of the remainder of the session. Some late selling saw the major averages finish off their highs, but still all closed high in their intraday trading range. The Nasd averages were the strongest due to strength in large cap tech stocks. The COMPQ and the NDX gained 2.56% and 3.09% respectively. The SPX rallied 1.64%. Volume was mixed. It fell 18.01% on the New York but rose 10.48% on the Nasd. This was enough to finally produce a follow through on the COMPQ. Leading stocks rallied as well with the leaders index climbing 1.49% on the session. The index closed in the lower half of its trading range on much higher and above average volume. The positive action of the market continued today with the major averages rallying strongly. We finally got the follow through on the COMPQ that we have been hoping for. This increases the level of conviction in this rally. We had a Eureka late last week so that indicator is confirming. The %E’s are 5.0% so they are to low. There are a solid number of quality growth stocks breaking out and producing some worthwhile gains. We are very close to the recent highs before the corrective action we have just seen. A move above those highs would be encouraging. It seems that the follow through on the Dow may turn out to be working. The follow through on the COMPQ gives it a lot more creditability. Right now the major averages are rallying and stocks are working. That is reason enough to be invested in the market. Jerry