Jerry Samet
11-12-2011, 01:54 PM
The market had another strong day yesterday on a price basis with the major averages rising about 2%. Volume was another matter as it dropped over 15% across the board. Some of this can be explained by the Veterans Day holiday, but you still want to see these big price moves confirmed by strong volume. All the major averages also remain below their 200dma's. This moving average has contained bear market rallies in the last five bear markets and the market must break above this level with conviction if this rally is to continue. Leading stocks rallied along with the overall market as the leaders index rose 1.5% on lower and below average volume. Overall this index has underperformed the market for this entire rally as can be seen in it's RS line. It continues to be a news driven market and will likely remain so, but the count in the market school model is +5, or fully invested. There is a market school seminar in the planning stage for Jan 21st in the Los Angeles area. It will be the only one on the west coast next year. This is the pinnacle of canslim and is an exact set of trading rules that O'Neil and his portfolio managers use to run ten figures of O'Neil's money. If anyone is interested in attending you can contact Amy Smith at Amy.smith@investors.com to get more information. Jerry