Jerry Samet
01-04-2018, 06:35 PM
The market continued to rally today, but with a milder tone. The major averages opened higher, but all the gains were made quickly and the highs were made early. The New York averages led the way today with the Nasd averages showing smaller gains. The COMPQ was higher by .18% while the SPX rallied .40%. All the major averages closed low in their intraday trading ranges for the first time this year. Volume was mixed. Higher on the New York and lower on the Nasd. It is good to see volume following the greatest price change. The greatest strength was again in the semiconductor stocks as the SOX gained .56%. Leading stocks were mixed with the leaders index falling .79% on the day. The decline was caused by two index components, LGIH and XOMA, falling 4.18% and 5.63% respectively. Volume was lower than yesterday and well below average, good when prices are consolidating gains. The index closed in about the middle of its trading range and is well above all its short term moving averages. Most of today’s gains were in the Dow with the others bringing up the rear. All the major averages made new highs today and are looking good. There was selling later in the day that caused them to close near their lows of the day, but no damage was done. We will have to watch to see if the leadership shift back to tech and Nasd stocks continues, but the market looks like it is on solid ground right now. Jerry