Leaders Index 10-14-21

The market put in a strong session today. The major averages opened higher after some good earnings reports came out and was strong for the remainder of the session. All the major averages finished at or near their intraday trading highs. The gains were pretty evenly divided. The COMPQ and the NDX were higher by 1.73% and 1.88% respectively. The SPX rallied 1.71%. Volume was mixed. It was lower by 9.10% on the New York and higher by 4.50% on the Nasd. This combined with the price gain in the Nasd was enough for a follow through on the COMPQ. Leading stocks had a strong session as well. I created a new leaders index since there was a new follow through. It contains 23 stocks in 18 different industry groups and is a good cross section of leading growth stocks. I have included a text file with the components of the new index. The index gained 3.28% today on lower but above average volume. The new index is making a new high, which is what I am looking for in a new leaders index. These stocks are the leaders and they will likely get hit first and hardest if the rally fails. The market rallied strongly on heavier volume on the Nasd. This produced a new follow through and a new rally. This was actually a bit disappointing to me as the weekly Coppock has not had time to set up to confirm, so it will not confirm this follow through. There was also no Eureka signal today, but we could get one in the next few days. The %E’s are 11.7% so this indicator will confirm, but it is the only one of the three. This is not a well confirmed follow through and that reduces the chances that it will produce a tradable rally. There are some positive factors. Quality growth stocks have been outperforming in the last week or so and that is positive. We are also going into a seasonally positive period when the market usually rallies. There has been a true follow through and there are some attractive stocks out there. But I would feel a lot better if we had a Coppock signal to confirm the follow through. Jerry