Jerry Samet
12-22-2011, 12:22 AM
The market started off weak today as there were significant losses in all the major averages. The Nasd was hit hardest, a lot of that was due to ORCL. Late in the day the markets started to rally and finished at the highs of the day. The New York averages closed slightly higher while the Nasd closed down 1%. Volume was higher across the board so even though the market showed strength late there was a distribution day on the Nasd. A distribution day within two days of a follow through is almost always fatal to a rally attempt. Leading stocks declined about in line with the Nasd averages as the leaders index dropping 1.03% on slightly lower volume. There were very few new breakouts yesterday and quite a few leading stocks, including CVLT and SWI broke down on heavy volume. We will have to see which way this rally attempt plays out, but it is not looking very good so far. Jerry