Leaders Index 11-11-16

The market acted pretty well again yesterday. There was a little selling early but it didn’t last long. After a couple of hours of mild selling the buying resumed and the markets closed with modest gains. The COMPQ was higher by .54% while the SPX had a small decline of .14%. In another sign of support all the major averages finished the session at their intraday trading highs. This is a real sign of support. Volume was lower across the board, but still well above average, showing that large institutional players were in there buying stocks. Leading stocks had a strong session as well with the leaders index rallying 3.41% on huge volume. The new index I created on Wednesday contains many stocks in financial and in fracture sectors that have been performing well since the election results came in and a rotation began. Yesterday even the tech related stocks that had been underperforming did well, accounting for the large gain in the index. Both on a price and a relative strength basis the index has been extremely strong. If you look at the chart od the leaders index you will see that it broke into new high ground on heavy volume last Monday, apparently anticipating the results of the election. The market continues to act very well. The greatest strength yesterday was in the small caps and the semiconductors. It seems that the market wants to go higher in at least the short term. There are more attractive stocks out there now than there have been in weeks, so it looks like there will be higher prices in at least the near term. Jerry