The market put in another sold rally day yesterday. The buying sparked by NVDA’s earnings continued, but the up move was more widespread. The major averages opened higher and worked their way up most of the remainder of the session. All the major averages finished high in their intraday trading ranges. The COMPQ and the NDX gained 2.19% and 2.58% respectively. The SPX rallied 1.30%. Volume was lower across the board, as you would expect before a long holiday weekend. Leading stocks participated in the rally also with the leaders index gaining 1.92% on the day. The index closed in the upper half of its trading range on lower but well above average volume. The market continued the rally that started Thursday after the earnings report from NVDA sparked a big rally in tech stocks. Leading stocks are acting better with the leaders index breaking out of a consolidation pattern and making new highs. The major averages, at least the Nasd averages are acting better. The New York averages are lagging as recent action has been concentrated in the Nasd and tech stocks. There was a lot of talk yesterday about a deal on the debt ceiling being close. The market is rallying on that news. One thing to watch is that we don’t get into a buy the rumor and sell the fact. There has been a rally in anticipation of a deal. We have to watch out for selling when the deal is actually announced. The market looked pretty bad early in the week but the NVDA earnings report after the close on Wednesday really lit a fire under the market, particularly the Nasd. We have seen some nice gains, particularly in the Nasd related ETFs, but it remains an overall tough market and you have to be in the exact right stocks to make any real progress. Jerry
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