Jerry Samet
12-22-2014, 11:46 PM
The rally attempt continued today as the market opened higher and was I mostly positive all day. Late strength allowed all the major averages to close at their intraday highs. The SPY led the way up with a gain of .38% while the COMPQ was close behind by advancing .34%. The New York averages made new closing highs and just missed new intraday highs. The real strength today was in the semiconductor stocks with the SOX higher by 1.54%. Volume was light and much lower than Friday. This would be expected after an expiration day, but it was also below very day last week. Volume will likely be light all this week and next as many market participants are away for the holidays. Leading stocks had a solid if not spectacular session. It looked like we would make new highs today on the New York averages and thus trigger a resumed uptrend call from IBD. We just missed the intraday highs and so IBD stayed with market in correction. The MEM is already back in the market and any gains from here will make IBD call resumed uptrend, even without a follow through, so I put together a new index. I thought about holding off publishing it but decided to go ahead. The new leaders index has 21 stocks in 16 different industry groups. I must admit that I had a harder time than usual finding enough attractive stocks to put together the new index. The new index was higher by 1.77% on lower and below average volume. It is into new high ground on both a price and a relative basis. It appears we will go into new high ground any day now and the market is acting well. We will likely get a year end rally, but after that it is hard to tell. Few stocks are acting really well now and the pickings among individual stocks are slim. I started getting into the market last week with ETF’s and will look at a couple of individual stocks this week. I would be careful about how far in you want to get and stay ready to run for the exits on very short notice. Jerry