Jerry Samet
02-03-2016, 11:18 PM
It was a wild session today. After opening stronger the major averages sold off to significant losses and it looked like it would be another negative day. Around 11:10(Pacific time) the market began to rally. The New York averages finished with gains while the Nasd averages rallied but still closed in negative territory. The SPY gained .50% while the COMPQ lost .28%. much of the decline was caused by a sell off in the mega cap tech stocks. All closed high in their intraday trading ranges. Volume was higher across the board, so it counted as an accumulation day on all the major averages, even though the COMPQ picked up another distribution day. Leading stocks were lower on the session with the leaders index falling .26%. It closed in the upper half of it’s intraday trading range and after trading below important moving averages during the day finished above them. Volume was very strong and well above average so there was distribution here also. An interesting number came from the Marketsmith 250. There were 76 stocks up on heavy volume and 295 down on heavy volume. The reversal we had today is generally a good sign, but it is hard to get to excited. There are few attractive opportunities right now and fewer still are working. A high cash position is a good idea at this point. Jerry