Jerry Samet
10-09-2023, 06:26 PM
The market acted pretty well today. The major averages opened lower after the events in the Middle East over the weekend. They only posted modest losses and after bouncing around for a while reversed and rallied into positive territory. All the major averages finished near the top of their intraday trading ranges. The COMPQ and the NDX gained .39% and .49% respectively. The SPX was higher by .63%. Volume was lower across the board, as you would expect on the Columbus Day holiday. Leading stocks participated in the rally as well. Since there was a follow through on Friday on the COMPQ, I put together a new leaders index. It contains 20 stocks in fifteen different industry groups. I think it is a good representation of the current market leadership. I have included a text file with the components of the new index. It was up 1.19% on lower but about average volume. The market acted much better than I expected today. Often how the market reacts to news is more important for the market than the news itself. The market reacted well today to some very bad news. This is encouraging. There were some quality growth stocks acting well today and Friday and this is also good. Friday’s follow through on the COMPQ was poorly confirmed, and those follow through days are suspect. Today’s action improved the picture. Also the weekly Coppock, while still headed down, is slowing its rate of decline. This produces a curl in the chart and could be a warning that the indicator could turn up in the next few weeks. That would be very positive and would likely signal the start of a tradable year end rally. I am not convinced yet, but I am a lot less unconvinced than I was yesterday. Jerry