Jerry Samet
11-10-2020, 06:19 PM
The market continued yesterday’s pattern of a split market. The rotation continued with selling in tech stocks remaining strong. The market opened weaker and mostly traded lower all day. The major averages closed mixed. The New York averages finished high in their intraday trading ranges, while the Nasd averages closed in about the middle of their trading ranges. The Nasd averages were lower with the COMPQ and the NDX falling 1.37% and 1.74% respectively. The SPX was off by only .14%. Volume was lower across the board, as you would expect after such high volume yesterday. It fell 30.42% on the New York and 19.87% on the Nasd. Leading stocks were lower as well with the leaders index falling 1.80% on the day. It closed high in its trading range on higher and above average volume. The rotation out of growth and pandemic friendly stocks continued today. The Nasd averages continued to weaken while the New York averages held up. Small and mid-cap stocks continued to do well. The market is rotating out of the kind of quality growth stocks that most of us are interested in. This makes for a difficult environment for buying breakouts as Many are Filing. This type of action is often seen at market tops and does not bode well for the current rally attempt. I would be very careful now and hold only the strongest positions. Jerry