Jerry Samet
05-15-2024, 06:32 PM
The market staged a strong rally today. The CPI report was friendly and the major averages opened higher and worked their way up the rest of the day. All the major averages finished near the top of their intraday trading ranges. The COMPQ and the NDX gained 1.40% and 1.49% respectively. The SPX rallied 1.17%. Volume was mixed. It fell on the New York but was much higher on the Nasd. This was enough to produce a follow through on the COMPQ. Leading stocks were strong as well with the leaders index gaining 1.23% on the day. The index closed high in its trading range on much higher and above average volume. This is a new high for the leaders index on both a price and a relative strength basis. The market rallied strongly on a friendly CPI report and finally produced a follow through. The gains today were good and all the major averages made new all time highs. Volume on the Nasd was very strong, showing that large institutional players were buying stocks today. Leading stocks are also doing well. The leaders index is strong and there have been a good number of quality growth stocks breaking out in recent days. Since there was a follow through I am working on a new leaders index, although the current one still looks pretty good. This leaders index has been a winner in this rally. I created the index on 11/1/23 and it has acted well for the entire rally, lasting more than six months now. The index has gained 49.31% in the slightly more than the six months since I created it. Not bad for an unmanaged basket of quality growth stocks. I believe its confirms the concept of basket investing that I have been using for some time now. The action today supports more confidence in the rally and a more aggressive posture. I will have the new leaders index ready tomorrow and will put it out then. Jerry