Jerry Samet
01-14-2014, 11:17 PM
The market rebounded today after yesterday’s decline. After gapping open the major averages climbed the rest of the day to finish at their highs of the day. The COMPQ lead the way due to a rebound in tech stocks and regained all of yesterday’s losses with a gain of 1.69%. This was enough for it to close at a new 52 week high. The SPY also got back it’s losses with a gain of 1.08%. Volume was lower than the previous session’s decline but was above average on the Nasd, which is not what you want to see. Large players were not buying with the same vigor they sold with yesterday. Leading stocks rallied along with the overall market as the leaders index rose 2.16% on lower and well below average volume. The index closed back above it’s important 17dma and it’s relative strength line turned up. It would be better to see a rebound after a strong and high volume sell off on higher volume than the previous day’s selling, but we did not get that. Once again a quick decline didn’t hold and the market recovered to new highs. This kind of volatility is common late cycle action and can make it difficult to hold positions. Despite the red flags out there the market is continuing higher and some stocks and EFTs are doing well. The long side is the place to be now, but I would keep a close eye on the exits. Jerry