Jerry Samet
07-04-2014, 12:30 PM
The market had a positive day on yesterday’s holiday shortened session. After opening higher the major averages were up all day and closed at their intraday highs. The COMPQ led the way with a gain of .63% while the SPY was up .55%. Small caps again were strong as the RUT rose .74%. Volume was lower across the board, but this is to be expected during a half day trading session before a holiday. Leading stocks had a solid day as well with the leaders index rising .94%, also on very low volume. The index set a new closing high for the move and closed in the upper half of it’s intraday range. This is a sign of strength. Few stocks are producing large gains but there are a fair number that are higher after their breakouts that are at least producing worth while gains. This is a late cycle rally and the goal should be to make some moderate gains and be happy with them. It is dangerous to try to swing for the fences now. Going for singles or the occasional double is the best play. Both the major averages and the leading stocks continue to act well and the rally looks like it is on solid ground. I hope everyone has a good 4th of July. Jerry