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View Full Version : Leaders Index 5-23-23



Jerry Samet
05-23-2023, 06:31 PM
It was a rough session overall for the market. The major averages opened lower and were in negative territory the whole day. Late weakness saw all the major averages finish low in their intraday trading ranges. The COMPQ and the NDX fell 1.26% and 1.28% respectively. The SPX lost 1.12%. Volume was higher across the board, showing that large institutional players were selling stocks. This also produced a new distribution day on all the major averages. Leading stocks were off as well with the leaders index falling 2.06% on the day. The index closed low in its trading range on higher but just below average volume. The market was weak all day but was hit by news that the debt ceiling talks were not going well. This is going to be the main issue for at least the next week and maybe longer. The two sides will play a game of chicken to get as much of what they want before making a deal at the last minute. The market will go up and down on news of the talks until the deadline is reached. The market has been strong in the last week or so but today was a negative session. One day doesn’t change a trend, even a short term one, but there are more red flags out there. A sideways up and down is the worst situation of all. A trend in either direction can be used to make money, but this kind of rally and reverse market can chew you up. It is a good time to be cautious and any positions taken should be a least partially sold if any decent gain can be achieved. A cash cushion is a pretty good idea for a significant portion of your capital. Short term yields are pretty sweet right now. Jerry