We saw a very divergent market today. There was strong action in the major averages, but it was concentrated in a small number of big cap, mostly tech, stocks. Market internals were pretty weak. The major averages opened higher on the earnings report from NVDA and spent most of the session working their way higher. All the major averages finished high in their intraday trading ranges. The Nasd averages led the way with the COMPQ and the NDX gaining 1.71% and 2.46% respectively. The SPX rallied .88%. Volume was higher across the board, showing that there was real buying pressure today. Leading stocks had a good day as well with the leaders index gaining 7.34% on the day. Much of the gain was due to NVDA and a couple of other semiconductor stocks. ETF’s that track leading growth stocks didn’t do as well. The leaders index closed high in its trading range on very high volume. It also broke above its recent consolidation range. The market had a bit of a split personality today. The gains in NVDA and large tech stocks in general drove large gains in the Nasd averages. Market internals were much weaker as there were more declining stocks than advancing stocks on both exchanges. Small and mid-cap stock averages were lower on the day. The rally generally continues but it is extremely narrow. All the action today was in a small number of big cap tech stocks and semiconductors. The SOX was up an incredible 6.81%. In order to make money right now you have to be in just the right stocks. Most are not going anywhere. Some of the Nasd oriented ETFs are doing well. Jerry
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