Jerry Samet
08-04-2012, 12:16 PM
The market had a strong rally on a price basis yesterday on the better than expected employment report. Volume was lower across the board so there was not a lot of conviction in the move. All the major averages made new highs for the move so we are still in the pattern of higher highs and higher lows. This is positive, but the market is reacting to news so it is difficult to predict what will happen next. This is one of the most difficult market environments I have seen. Leading stocks did well also yesterday as the leaders index climbed 2.29% on higher but still below average volume. We saw new highs on both a price and RS basis on the index yesterday. We continue to work our way slightly higher in a very choppy market. Every time it looks like there may be a sustainable move in either direction the market reverses. It's trying to work it's way higher, but the whip saw nature of this market means that its probably a good idea to play this market small. Jerry