Jerry Samet
07-26-2012, 10:57 PM
We had a strong rally today. The market was up all day and closed near the highs of the session. The major averages were up between 1.37% and 1.93% on higher and above average volume. This action constitutes an FTD and IBD had put the market into a confirmed rally. The MEM also recorded an FTD and is now buying back into the market. The biggest problem with this is that the rally was caused by the head of the ECB saying that they would do anything to preserve the Euro. We have heard this many times before from European "leaders" so this must be taken with a grain of salt. On the other hand this is the head of the central bank saying the printing presses are warming up so they could produce a short rally. The FTD is also confirmed by two of the big three indicators. There was a weekly Coppock signal last week and the %E's are 9.6, well within range. Only the Eureka didn't confirm, although it was very close. There was fair action among leading stocks with the leaders index rising 1.16% on higher volume. There were several quality stocks that broke out. The cause of the positive action today should give us some pause so we will have to see if a real rally takes hold. Jerry