4-26-2012 comments

We did see a follow-through day on the S&P500 yesterday causing IBD to but the market back into a confirmed rally.
The NASDAQ started the day with a +1 exposure count. Today almost five hours into the day the NASDAQ lows of the day are above both the 50 dma and 21-day ema. If we remain above these levels and close positive on the day we should see a B3 and B6 market buy signals moving the exposure to +3 (75% invested).

I thought the volume behind yesterday's move was minimal. A lot of stocks went up but volume didn't quite match. You can tell from looking at the TRIN which finished yesterday at 0.88. The TRIN is a ratio of ratios developed by Richard Arms. The numerator is NYSE Advancing issues/NYSE declining issues. The denominator is NYSE advancing volume/NYSE declining volume. The 0.88 means that the volume ratios were larger than the isssues ratio but not really by much. A stronger day would have a TRIN below 0.6 or thereabouts.

AAPL for example went up a lot on volume lower than 5 or 6 recent down days volume. This action was not inspiring. However we are back in a confirmed rally on IBD. The Market School model never went into correction. I kept a minimal exposure through the correction with ISRG, LNKD and FRAN. I took profits in GNC yesterday.