Jerry Samet
10-24-2013, 11:33 PM
The market had a solid rally day today with the COMPQ leading the way with a .56% gain and the SPY bringing up the rear with a .33% rally. Volume was mixed, higher on the Nasd and slightly lower on the New York. This was enough for an accumulation day on the COMPQ. The major averages are acting well with all of them within fractions of their recent highs. Leading stocks are struggling more. The leaders index had a good day today, climbing 2.16% on lower and below average volume. The index is close to it’s recent highs, but many individual leaders have a sloppy look to them. There have been some nasty reversals on good earnings reports and this is a cause for concern. Of the four horsemen leaders three are not acting well. NFLX had a bad reversal on good earnings and LNKD and TSLA are struggling. Only FB is still acting strong. Also there have been a couple of failed breakouts recently, such as FNSR. Right now the major averages are acting better than quality stocks and this is the reverse of what you want to see. No major damage has been done yet, but it would be good to see the current leaders catch up to the major averages and some fresh breakouts would be nice. There are only two distribution days on the COMPQ and none on the New York averages so these numbers are low, but the MEM(which did not have distribution cleared as the COMPQ didn’t have a follow through) has seven distribution days and a count of two. The long side is still the place to be, but the recent action in some leaders is a cause for concern. Jerry