The market put in a strong rally today, with the Nasd averages leading the way. The major averages opened higher and spent the rest of the session working their way up. The Nasd averages were the strongest today, in contrast to yesterday’s action. The COMPQ and the NDX gained 2.56% and 2.51% respectively. The SPX was higher by 1.48%. The semiconductors were the standout performers today with the SOX rallying 3.86% today. All the major averages finished at or very near the top of their intraday trading ranges a sign of strength. Volume was lower across the board. It fell 13.10% on the New York and 10.91% on the Nasd. You would prefer to see higher volume on a move to new highs, but yesterday’s volume was very high and today’s was still pretty strong. Leading stocks had a strong session as well with the leaders index gaining 5.54% on the day. The index made a new high on both a closing and an intraday basis and closed high in its trading range. The relative strength line also made a new high while volume was lower and below average. The market rallied well today after it seems that there will be no more disputes about the election and there will be an orderly transfer of power on January 20. The rallies in the major averages were strong and all made new all time highs. Leading stocks are acting well and are outperforming the overall market. This is a good sign as the market rarely gets into real trouble when quality stocks are acting well and are outperforming the market. The market is very extended, but it can get a lot more extended than we think it can before it tops out. Right now the market is going higher and riding the wave is the thing to do. Jerry
Reply With Quote