Jerry Samet
07-30-2014, 11:18 PM
The market opened strong today as all the major averages had solid gains, mostly based on a stronger than expected GDP report. It then lost all those gains and went into negative territory on the day. After the Fed announcement the major averages rallied again, but once more gave up much of their gains. The Nasd averages were the strongest today with the COMPQ up by .45% while the NDX was higher by .43%. Much of this was due to strength in the tech stocks following TWTR’s better than expected earnings report. The New York averages were weaker as the SPY was flat with a gain of only .01%. Volume was mixed, higher on the New York and lower on the Nasd. There was no distribution today and one day dropped off of both the major averages. Leading stocks were weaker than the overall market with the leaders index lower by .85% on lower but still below average volume. The index traded below it’s important 17dma but managed to rally back to close right on it. It is important that the index holds this moving average. Both the major averages and the leaders index are staying close to their recent highs. The easy monetary policy on the part of the Fed seem to be putting a floor under the market, but they can’t seem to get any momentum on the up side. It is a very difficult environment and there have not been a great number of fresh breakouts in recent days. It is ok to take some positions, but they should likely be smaller than usual. Jerry