Jerry Samet
10-05-2019, 11:31 AM
The market staged a strong rally after a well received employment report. It came in close to expectations and was strong enough to lessen fears of recession but not strong enough to make the Fed pull back from rate cuts. The major averages opened higher and rallied for pretty much the rest of the session. The gains were pretty evenly divided. The COMPQ and the NDX gained 1.40% and 1.51% respectively. The SPX was higher by 1.42%. All the major averages closed at or very near their intraday trading highs, a positive sign. I hate to sound like a broken record but the real problem was again volume, it was lower across the board. Volume on the Nasd fell 17.48% while it was down by 13.27% on the New York. This is negative. Leading stocks had a solid session as well with the leaders index gaining 1.65% on the day. The index closed high in its trading range and cleared the short term 9dma. Volume was lower and below average. The market put in strong price gains yesterday, but there was little conviction behind the move. The SPX and the NDX regained their 50dma’s while the COMPQ and the NYA remain below this important moving average. The lower volume continues the recent pattern of high volume declines followed by lower volume rallied. This is not a positive volume signature. At this point I really don’t know which way the market is going to go. Right now the major averages are gyrating back and forth and few leading stocks are producing worthwhile gains. As always the market will tell us which way it will go, but this is not the time to get to aggressive. Jerry