Jerry Samet
07-18-2015, 11:55 AM
We had a real mixed market yesterday. The New York averages were flat on the session while all the action was in the Nasd, particularly the big cap tech stocks. Recent blowout earnings reports from big cap tech companies, with GOOGL being the most recent example, have driven the Nasd averages to new highs. The COMPQ was up by .91% while the NDX was higher by 1.45%. The SPX was higher by only .11% while the small and mid cap sectors showed declines on the day. Volume was higher across the board, which would be expected on an expiration day. Leading stocks showed some mixed performance as well but were overall stronger on the session. The leaders index rose .59% on the day on much higher and well above average volume. The index was led by it’s big cap components, mostly ILMN and FB, while several of the smaller stocks in the index lagged. The relative strength line of the leaders index also made a new high, showing that quality growth stocks are outperforming the overall market. We are kind of seeing a replay of the last time the Nasd averages made new highs. On 6-18 the COMPQ broke into new high ground to much fanfare. The index held those gains for about a week before breaking down and erasing them. Will the results be any better this time, I don’t know. It is probably a good idea to position size a bit more carefully and not get carried away by getting to heavily invested. It is better to make less money if the move proves to have legs than take it between the eyes if it doesn’t. Jerry