The market put in a solid performance today. The major averages opened higher and rallied for most of the remainder of the session. All the major averages closed at their intraday trading highs, a sign of strength. The Nasd averages led the way with the COMPQ and the NDX gaining 2.32$ and 2.25% respectively. The SPX was higher by 1.80%. Volume was disappointing. It was lower across the board, falling 4.24% on the Nasd and 10.32% on the New York. Leading stocks rallied as well with the leaders index higher by 2.98% on the day. The index closed near the top of its trading range on lower and very light volume. The market continues to rally. News that a stimulus deal may be closer and that Trump is leaving the hospital helped stocks. The price gains were strong and all the major averages finished near their highs. This is all good. The SPX and the NDX regained their 50 day moving averages. The only real problem we are seeing now is the lack of volume. We have not seen higher volume on any of the recent rally days, showing that large institutional players have not bought in heavily yet. The market is acting like it wants to go higher, but with the election a month away and other uncertainties you can’t be sure. I would feel a lot better if there were higher volume and a follow through on either the COMPQ or the SPX. Right now there are some attractive stocks out there, but staying close to the exit is a good idea. Jerry
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