Leaders Index 10-14-19

The market put in a pretty quiet session today. The major averages opened a bit lower and traded close to unchanged the entire day. They finished with the small losses. The COMPQ and the NDX fell .10% and .02% respectively while the SPX declined .14%. All closed low in their intraday trading ranges. Volume declined considerably across the board. It was lower by 36.24% on the Nasd and 31.62% on the New York. Leading stocks were mixed to slightly higher. The rally Friday produced at least a follow through like day if not a legal follow through. I sat down and created a new leaders index as the old one is over two months old and had many components that were broken. It contains 21 stocks in 16 different industry groups. I think it is a good representation of the top high quality growth stocks that are performing best right now. I will include a chart of the old index for a few days for comparison purposes.
A text file containing the components of the new index is included. The index gained .44% today and made a new high. Volume was low and the index closed low in its trading range. The index made a new high on both a price and a relative strength basis. The market acted fairly well today. The major averages held on to almost all of the gains of the last couple of days. The rest the market took today came on much lower volume, showing that large institutional players were not selling stocks today. The new index is a good list of top performing stocks and will give us a warning when these quality stocks are getting into trouble. That is the main purpose of the leaders index. Right now we are still subject to wild moves based on news stories and the earnings season is getting into full gear. Overall the picture has improved somewhat as the major averages have overcome resistance at their 50dma’s on volume. It is no time to get too aggressive, but more encouraging signs have emerged. The major averages must hold above their 50dma now support levels. Jerry