+ Reply to Thread
Results 1 to 1 of 1

Thread: Leaders Index 11-16-20

  1. #1

    Leaders Index 11-16-20

    The market put in a solid rally today on news that Moderna’ s vaccine was even more effective than Pfizer’s and was easier to distribute. The major averages opened higher and mostly held he gains until late buying came in and they all closed at their intraday trading highs. The Nasd averages again lagged with the COMPQ and the NDX with solid gains of .80% and .63% respectively. The SPX was higher by 1.16%. There was strength in the small and mid-cap stocks along with the semiconductors. The RUT and the MID were higher by 2.37% and 2.00% respectively. The SOX rallied 2.48%. Volume was higher across the board. It gained 10.29% on the New York and 12.25% on the Nasd. This shows that large institutional players were buying stocks today. Leading stocks rallied as well with the leaders index higher by 1.58% on the day. The index closed near the top of its trading range on lower but well above average volume. The rally is working its way higher on continued good news on the vaccine front. It now looks like there are two very effective vaccines that will be becoming available in the next few months. This is very positive news. Since the announcement of Pfizer’s vaccine last Monday there has been a rotation under way and the traditional growth stocks along with tech stocks have underperformed. This presents a problem for canslim type traders in that the type of stocks generally invested in fall into this category. Rotations can have different effects. They can signal the later phases of a rally or they can see a rally in the major averages continue as new leaders step forward. It is a little early to tell which of these options will occur. Right now the charts of the major averages look good as several made new highs today. The Dow and the SPX made new all time highs on heavier volume. The SOX, as well as the MID and the RUT made new all time or closing highs. The leaders index looks ok as the index remains above its 9dma. This is a tough market as there are several items that you usually see late in a rally happening now, but the charts look ok. The vaccine news is great and is holding up the market, but right now I would have to say that the upside from here looks limited right now. Jerry
    Attached Images  

+ Reply to Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts