Leaders Index 8-10-20

[Jerry Samet]

The market put in a mixed performance today. After a slightly higher open the major averages sold off to generate some losses. They bottomed out and regained most of the declines. The New York averages were the strongest with the SPX closing in positive territory with a gain of .27%. The Nasd averages declined with the COMPQ and the NDX losing .39% and .49% respectively. The New York averages closed at the top of their intraday trading ranges while the Nasd averages finished in the upper half of their trading ranges. Volume was mixed but overall encouraging. The volume on the New York was higher by 2.60% and it was lower by 5.92% on the Nasd. Leading stocks sold off today along with the tech stocks. The leaders index fell 3.40% on the day on slightly lower volume than yesterday. The index broke below its important 17dma support level and the relative strength line is in danger of breaking below its 50dma. Most of the decline came from a couple of stocks. QLYS fell 6.25% and QDEL declined 15.79%. These stocks accounted for much of the decline but there was broad weakness in these stocks today. The Nasd averages, after leading the rally for some time seem to be taking a break. It is to soon to know if this is a short term rest or the beginning of rotation or a top in this type of growth stocks. The charts of the major averages still look ok but there have been four down days in a row in the leaders index culminating with a break of the 17dma. This must be watched closely because a serious break in leading stocks often precedes a top in the major averages. The volume signature today was good as there was higher volume in the New York averages that closed strong and lower volume on the weaker Nasd. This avoided a distribution day on the Nasd averages. The close of the Nasd averages in the upper half of their trading ranges was also positive. The recent weakness in quality growth stocks is something to be watched closely and the picture will be brighter if they rebound with conviction. Jerry

[cigarzfan]

Hi. What stocks comprise your leaders index?

The market put in a mixed performance today. After a slightly higher open the major averages sold off to generate some losses. They bottomed out and regained most of the declines. The New York averages were the strongest with the SPX closing in positive territory with a gain of .27%. The Nasd averages declined with the COMPQ and the NDX losing .39% and .49% respectively. The New York averages closed at the top of their intraday trading ranges while the Nasd averages finished in the upper half of their trading ranges. Volume was mixed but overall encouraging. The volume on the New York was higher by 2.60% and it was lower by 5.92% on the Nasd. Leading stocks sold off today along with the tech stocks. The leaders index fell 3.40% on the day on slightly lower volume than yesterday. The index broke below its important 17dma support level and the relative strength line is in danger of breaking below its 50dma. Most of the decline came from a couple of stocks. QLYS fell 6.25% and QDEL declined 15.79%. These stocks accounted for much of the decline but there was broad weakness in these stocks today. The Nasd averages, after leading the rally for some time seem to be taking a break. It is to soon to know if this is a short term rest or the beginning of rotation or a top in this type of growth stocks. The charts of the major averages still look ok but there have been four down days in a row in the leaders index culminating with a break of the 17dma. This must be watched closely because a serious break in leading stocks often precedes a top in the major averages. The volume signature today was good as there was higher volume in the New York averages that closed strong and lower volume on the weaker Nasd. This avoided a distribution day on the Nasd averages. The close of the Nasd averages in the upper half of their trading ranges was also positive. The recent weakness in quality growth stocks is something to be watched closely and the picture will be brighter if they rebound with conviction. Jerry