Leaders Index 12-11-14

The market started out strong as all the major averages opened higher and rallied to levels that almost eliminated yesterday’s losses. The market saw it’s highs about two and a half hours into trading and then started selling off. Declines into the close cost the market most of the session’s gains and all the major averages closed near their intraday lows. The COMPQ was higher by .52% while the SPY gained .45%. Volume was mixed, lower on the New York and higher on the Nasd. The fact that the major averages couldn’t hold most of their early gains showed that there were sellers waiting to take advantage of the higher prices to dump positions. Leading stocks also had early gains that mostly evaporated. The leaders index finished the day up by .37% and finished near it’s intraday lows. The index is now back below it’s short term 9 and 17 day moving averages. The fact that the index can’t seem to get back above these important moving averages speaks to the overall lack of strength in quality growth stocks. The leaders index has made no progress in a month, which seems to mirror the portfolios of most canslim players. It is getting old, but there was another Hindenburg Omen signal today. That makes eight signals in the last nine trading days. This is the strongest cluster I can remember. The market is struggling now and quality growth stocks are having a harder time than the major averages. There were two nice breakouts today, HABT and RH. Watch these stocks for an indication of how things will go. If these stocks can’t produce worthwhile gains then there would seem to be little chance of making real progress in individual stocks. It is a difficult market and one should probably be happy with limited gains, if they are are available at all. Jerry