Jerry Samet
07-14-2012, 12:30 PM
The market had a strong rally on a price basis with the major averages rising about 1.5% on average. All closed near their highs of the day. Volume on the other hand was down across the board. This shows(despite the fact that it was a Friday in the summer) that there was no real conviction in the rally. We had several distribution days in the last week so there has been more pressure on the downside than the upside. Leading stocks underperformed the overall market with the leaders index rising 1.38% on very low volume. The index is now living below it's 17dma which is an important support level for leading stocks. Since the most recent FTD's neither the major averages or leading stocks have been able to do much. Breakouts have not worked and we are simply making small moves in either direction that are quickly reversed. That makes it hard to make progress in either direction and is the definition of a death of a thousand cuts market. Until we can get a real trend on way or the other the beach is a good place to be. Jerry