Leaders Index 11-20-20

The market had a slightly down session yesterday. The major averages opened lower and traded down most of the day. All the major averages closed at or very near their intraday trading lows. The COMPQ and the NDX fell .42% and .66% respectively. The SPX declined .68%. Volume was lower across the board. It fell 4.40% on the New York and only .12% on the Nasd. They thus avoided distribution, but it was really close on the Nasd. Leading stocks rallied on the day. The leaders index gained 1.54% on the session. The index closed in about the middle of its trading range on slightly lower volume. The market continues to act ok. The major averages are continuing in a consolidation pattern, although they are near the top of their trading ranges. Leading stocks are slightly outperforming the overall market with the leaders index making a new closing high but not an intraday high. The relative strength line of the leaders index also made a new high. The market is clearly in a rally, but it s not a strong rally. The fact that quality growth stocks are outperforming right now is a positive sign as the market rarely get into real trouble when these stocks are doing well. It’s a mixed market right now as few stocks are producing strong gains but there are a decent number of attractive setups. It looks like you can make some money if you handle leading stocks well, but this is nor the kind of rally that produces large gains, as we saw in the rally that began after the sell off earlier this year. It is ok to take positions now, but expectations should be moderate and if you can get 20% gains it is probably best to take them and not try for larger returns. Jerry