Jerry Samet
07-16-2015, 11:18 PM
The market had another solid rally session today. After gapping higher at the open on a combination of the Greek parliament approving the bailout bill and some positive earnings reports. The major averages held their gains the rest of the session before some late strength allowed them to close at their intraday highs. The COMPQ led the way higher with a gain of 1.26% while the SPX was higher by .80%. Volume was mixed, higher on the Nasd and lower on the New York. This sure looked like a follow through day although IBD didn’t call it one but said there was a rally resumption. The Nasd averages went into new high ground. The leaders index had quite a few broken stocks and was stuck below the 50dma. This didn’t look good when the major averages were making new highs, so I created a new index. It is rallying strongly on both a price and a relative strength basis, as you would expect from a new index. The index consists of 21 stocks in 18 different industry groups. It is a good cross section of quality growth stocks that are doing well right now. We have had another minor correction that has rebounded into new high ground. There have been several of these in the last year that have produced little in the way of gains before they sold off again. It is to early to know if this latest occurrence will have any legs, but while it is ok to take some positions I wouldn’t get to carried away. Jerry