Jerry Samet
04-09-2014, 06:42 PM
The market opened today with a moderate continuation of yesterday’s rally. The Fed minutes came out at eleven Pacific time and said in effect that the Fed’s employment level for tightening had been dropped. The major averages exploded to the upside with the COMPQ leading the way with a gain of 1.72% while the SPY was up 1.02%. The SPY has now bounced off it’s 50 dma and the COMPQ is approaching this important moving average. Both major averages closed at their highs of the day, but volume was lower across the board. This shows that there was little buying pressure by large players. Leading stocks had another good session with those that were hit the hardest coming back the most. The leaders index was up 2.20% and closed just below it’s important 17dma. Volume was again lower and the rally of the last two days is taking on a wedging look. Today’s action shows how difficult it is to operate in the current environment. Unless you are a day trader it is probably best to remain on the sidelines. Jerry