Leaders Index 1-17-14

The market was slightly lower all day yesterday(except for the Dow, but who cares about that index). The COMPQ lead the way down with a decline of .5% while the SPY was off .4%. All the major averages closed near their lows of the session. Volume was higher across the board so there was distribution on all the major averages. Much of the volume increase was due to expiration on Friday, but it still counts as distribution. Each of the major averages had a distribution day fall off yesterday so the overall count remained the same. Leading stocks were off as well with the leaders index falling 1.21% on higher but still below average volume. This produced distribution on this index as well. Much of this decline was due to QIWI which dropped 13.16% on huge volume on the day. The index still held it’s important 17dma so it is still in good shape. Both the major averages and the leaders index are near their highs and have suffered no damage to date so the rally is intact. However the increasing number of quality stocks that are getting hit hard is of some concern. The list seems to be growing as NUS, GNRC and now QIWI have been hit hard.There were also some reversals yesterday in stocks like SPWR and QIHU. This increases the risk level and puts an added premium on careful stock selection. Overall the rally is still intact so the long side remains the place to be. As I spoke of earlier this week we got the weekly Coppock buy signals in gold and silver this week. In addition the monthly Coppock is very close to to giving a signal and that will likely come next month or in March at the latest. This means that we are at the start of a new cyclical bull market in the precious metals. Jerry