Jerry Samet
05-09-2020, 11:24 AM
The market put in another solid rally day today. The major averages opened higher and spent the rest of the session working their way up. All the major averages finished at or very near their intraday trading highs, a sign of support. The gains were pretty evenly divided with the COMPQ and the NDX gaining 1.58% and 1.30% and the SPX higher by 1.69%. Solid gains all around. Volume was mixed. It was up by 1.87% on the Nasd and lower by 5.51% on the New York. Leading stocks had a good session as well with the leaders index gaining 1.15% on the day. The index closed high in its trading range and made a new high on both a closing and an intraday basis. Volume was higher but still below average. This shows accumulation in quality growth stocks. The market continued its rally as both the major averages and the leaders index went into new high ground for the rally. The market closed near its highs for the day and the higher volume on the Nasd showed that large institutional players were buying mostly Nasd stocks yesterday. Leading stocks are acting well with the leaders index at new highs and the FFTY at new highs for the rally. The market rarely gets into real trouble when quality growth stocks are acting well, as they are now. I have been talking about a weekly Coppock buy signal that looks like it was coming for a couple of weeks. We got that signal this week. It was late this time as the indicator had a real head of steam going on the downside due to the large and very quick decline in the market. In addition there were weekly Coppock buy signals in other important averages. The COMPQ and the NDX both had signals. Along with this the INDU, SPX, RUT, MID and SOX all had weekly Coppock signals this week. The market pretty clearly wants to go higher and it looks like the market is going to make a run for its old highs. Jerry