Jerry Samet
11-18-2013, 06:51 PM
Hello everyone. I am now back from Miami where my father had a scare. He is very old and got sick and the doctors did not think he would make it. After being told he had less than 24 hours he stabilized and mostly recovered. He is out of the hospital and back in his apartment in his nursing home. Thanks to everyone who sent me messages and to Aloha Mike for sending out updates in my absence. The market looked like it was going into a correction, and as it has done many times this year it rebounded after a shallow down turn. The major averages reached new highs either all time for the New York or for the move for the Nasd averages. All the major averages reached new 52 week highs today on a solid opening. They were unable to hold these gains and in what looked a bit like a reversal day they sold off into the close to finish near the lows of the session. The COMPQ lead the way with a loss of .93% while the SPY declined .37%. Volume was mixed, down slightly on the New York and up a bit on the Nasd(according to esignal). This would produce distribution on the COMPQ. With the market rallying to new highs we got a resumption of the uptrend with a fail safe signal rather than a follow through day. Looking at the leaders index there were more stocks broken than still ok and the index was still struggling. I then put together a new index that has only stocks that are leading now. It has 23 stocks in 19 different industry groups and is moving up strongly. This is what you are looking for in a leaders index. The action of the index today mirrored the overall market as can be seen in the big red candle. After a wide trading range and an early new high the the stocks in the index sold off and closed near the lows of the day. Volume increased, producing distribution on the index. There has been good action in the major averages in the last week and leaders have firmed, but have not done as well. Fail safe rallies are not as reliable as those that start with a follow through, so while is is ok to participate one should not get carried away. Jerry