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Thread: Leaders Index 7-2-20

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    Leaders Index 7-2-20

    The market put in another overall positive performance yesterday. The major averages opened higher after a very strong employment report and held the gains for most of the session. Late selling came in and much of the early gains were lost, but there were still solid gains at the close. All the major averages finished at or very near their intraday trading lows, a sign of profit taking. The Nasd averages were a little stronger with the COMPQ and the NDX higher by .52% and .61% respectively. The SPX was higher by .45%. The greatest strength was in the semiconductor stocks with the SOX gaining 1.35%. Volume was lower across the board. It fell 11.78% on the Nasd and 4.04% on the New York. It is not unusual for many market participants to leave early before a long holiday weekend. This usually results in lower volume. Leading stocks had a good session as well with the leaders index gaining 1.50% on the day. The index closed high in its trading range and made new highs on both a closing and an intraday basis. Volume was higher but slightly below average. The relative strength line of the leaders index also made a new high. The market responded very well to a strong employment report and produced good gains. It held most of the gains until late in the day when some selling came in and erased much of the gains. It is not unusual for market participants to take profits before a long holiday weekend. This is especially true under the current circumstances when negative news could easily come out about the pandemic and cause a selloff. For this reason I would put less weight on the late selling than I usually would. Leading stocks are acting well and this a good sign. The market usually doesn’t get into serious trouble when quality growth stocks are outperforming the overall market. The picture still looks positive as the economy seems to be recovering nicely from he pandemic induced decline. The rally appears to be on solid ground and we should see higher prices ahead, a least in the short term. I hope everyone has a good 4th of July weekend. Jerry
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