Leaders Index 6-27-14

The market sold off early again and then rallied into the close to finish stronger. Late rallies allowed all the major averages to finish at their intraday highs, continuing a recent pattern. The COMPQ led the way again with a gain of .40% while the New York averages didn’t do as well. The SPY was up by .20%. The Nasd averages made new highs for the move, which is a good sign. Volume increased dramatically across the board. This was due to the Russell rebalancing that caused index related funds and ETFs to alter their portfolios to track the changes. Leading stocks were a bit higher on the session with the leaders index higher by .17% on much higher volume, again due to the Russell rebalancing. The rally is still acting ok with both leading stocks and the major averages still performing well. It is a fairly weak rally with few breakouts producing strong gains, but this is typical in a late cycle rally. This is the kind of market where you try for singles and maybe the occasional double, but there are few if any home runs. If you get a twelve to fifteen percent profit in a stock it is probably a good idea to take it and run. Getting greedy can come back to bite you. Jerry