Jerry Samet
01-02-2013, 11:30 PM
The market rallied strongly today on final passage of the stripped down fiscal cliff compromise. After gapping open the major averages rose between 2.23% on the NYA and 3.07% on the COMPQ. The NYA surpassed recent highs and broke a possible head and shoulders pattern that might have been forming. Volume was very high across the board. Leading stocks outperformed the overall market with the leaders index rising 3.53% with a gap up. It closed at new highs for the move and the RS line confirmed by also going into new high ground. Volume was very high showing there was conviction in the day’s action. The MEM added two points to bring the count to +3, or 75% invested. The action of the last couple of days has been very positive, but we remain in a news driven market and the recent deal did little to solve any real problems. The market is rallying now and the long side is clearly the place to be, but how long the rally will continue remains an open question. Jerry