Leaders Index 11-8-19

The market staged another decent up session yesterday. After opening a little weak the major averages found their footing a little bit into trading and worked their way higher for the rest of the day. Encouraging news on China trade helped the market rally. The Nasd averages were the strongest with the COMPQ and the NDX gaining .48% and .44% respectively. The SPX rallied .26%. All the major averages closed at their intraday trading highs, a good sign. Volume was lower across the board, declining 15.71% on the Nasd and 12.93% on the New York. Leading stocks were generally higher, but again lagged the overall market. The leaders index was flat with a gain of .03% on the day. The index closed in the lower half of its trading range and volume was lower and below average. The market is acting well right now and it looks like we are setting up a good yearend rally. This is a very positive time for the market as the November to January period is the most favorable seasonal time for the market. All the major averages made new closing highs, but not intraday highs. The only real negative right now is the underperformance of quality growth stocks. The current leaders index is acting very badly and is testing its 50dma. The relative strength line of the leaders index is also breaking down. Other indexes of leading stocks are acting a little better, but are still badly lagging the major averages. I am going to look over the next couple of days at a possible new leaders index as this one is doing so poorly. I suspect I will have a difficult time finding enough stocks to fill it out. The market is acting well and as I have said recently index ETFs look like a good way to participate. Jerry