Jerry Samet
03-09-2021, 06:26 PM
The market staged a strong rally today. After opening higher the major averages rallied for most of the day before a little late selling came in. The gains were still substantial. The Nasd averages and the semiconductors led the way higher today. Theses are the same stocks that have been weakest recently. The COMPQ and the NDX were higher by 3.69% and 4.03% respectively. The SOX rose 6.13%, regaining all of yesterday’s decline. The SPX was higher by 1.42%. The Nasd averages finished high in their trading ranges while the New York averages were in the middle to lower half of their trading ranges. Volume was mixed. It rose 5.01% on the Nasd and declined 7.22% on the New York. Leading stocks rallied hard today with the leaders index gaining 9.20% on the session. The index closed high in its trading range and tagged its declining 9dma at its highs. Volume was higher and above average. After weak action recently the market put in a strong rally today. In a reversal the stocks that have been weakest took the lead and showed solid gains. The semiconductor stocks regained all of yesterday’s losses and the Nasd averages as well. The higher volume on the Nasd averages showed some conviction behind the move. An interesting item to remember is that almost all of the biggest gains in the Nasd averages have come during bear markets. I don’t know where we are right now and what the market will do in the short term. It sure looked like it wanted to sell off into a correction, but there is an ocean of liquidity out there and that is helping prevent a real decline. The Nasd averages must break above their 50dma’s and the SPX make a new high to really show the market is really headed higher. As of tomorrow there will be the possibility of a follow through, we will have to see if that happens in the next few days. Jerry