Jerry Samet
07-21-2011, 11:47 PM
The market had a strong day today. The major averages rose about one and a half percent on strong volume and closed near the highs of the day. The leaders on the other hand were hit hard with the leaders index down almost 5% on the day with heavier and above average volume. The index also closed below both the 9 and 17dma's. Much of this decline was due to TZOO, which fell over 34%, but there were several other stocks that were hit hard. ARUN, BIDU, and SINA also took large hits. Many leading stocks are acting poorly and breaking down, forming what look like late stage base failures. Much of today's gains in the market were due to news about another deal on Greece. The news driven market continues so the whole thing could be reversed on bad news in the next few days. It is a very difficult market and I believe some caution is warranted. Jerry