Jerry Samet
08-02-2012, 10:49 PM
The market was was lower all day today and while it closed off it's lows the major averages finished in the lower half of their trading ranges. Volume was mixed, higher on the Nasd and lower on the NYSE. This produced a distribution day on the COMPQ, it's second. This means that in the five trading days since the FTD last Thursday there have been three distribution days and they have occurred in the last three successive days. This rally attempt and FTD was triggered by Draghi saying the ECB would do anything it had to to preserve the Euro. Once again the bold pronouncements of a European leader have turned out to be nothing but a bunch of hot air as the ECB did nothing at it's meeting today. Leading stocks did pretty well today as the leaders index rose .82% on very low volume. Quality stocks continue to outperform the overall market, which is a good sign, but the high number of distribution days so soon after an FTD and the fact that more empty talk from Europe triggered the rally, the evidence it starting to point to the high probability of another failed rally attempt. Jerry