Leaders Index 11-7-18

The market staged a powerful rally in reaction to the election results. The major averages gapped higher at the open and continued to advance throughout the session. The Nasd averages led the way as tech stocks, particularly the big cap ones, were strong. The COMPQ and the NDX were higher by 2.64% and 3.07% respectively. The New York averages were very strong as well with the SPX rallying 2.12%. All the major averages finished trading at their intraday trading highs, showing that there was buying into the close. Volume was higher across the board and was above average on both exchanges. This clearly indicates that large institutional players were buying stocks today. Leading stocks did well also, with many beaten down tech stocks rallying hard. Since there was such a powerful follow through today I created a new leaders index. It contains 23 stocks in 18 different industry groups. The new index set new highs today on both a price and a relative strength basis, just what you want to see in a new index. It advanced 10.05% today as several components had big moves on earnings reports. I have included a text file with the stocks that make up the index. There was a solid follow through today as all the major and secondary averages rallied today. The strong volume shows that large players were active. In addition all the major averages regained their 200dma’s today, clearing another resistance level. When there is a follow through I look to three indicators to confirm it. The %E’s were 19.3% yesterday. We will have to see what they are today, but the top of the range is 16% so they will not likely fall that low. Right now that indicator is not confirming. There was no Eureka signal today, but we could still could get one in the next few days. The weekly Coppock is still headed lower and is in negative territory. There is a hint of a curl and we will have to see what this indicator looks like at the end of the week. It could change but right now this is not looking like a well confirmed follow through. Today’s action was very positive and positions should be taken, but not going overboard is a good idea. Jerry