Jerry Samet
07-28-2012, 03:59 PM
The market had another strong day yesterday as all the major averages had solid advances. The COMPQ was up 2.2% while the SPY and NYA were both up just short of 2%. Volume was higher on the day and well above average. This shows that there was real conviction in the move. The MEM gained 2 points and is now +3 and could add another point on Monday. We also got a Eureka signal on Friday after just missing one on Thursday. This means that this FTD has now been confirmed by all three of the indicators that we use as confirmation. That means that this rally attempt had a much greater chance of success than the last two that failed quickly. There have been several good breakouts in the last few days and many of the stocks in my previous index were broken so I put together a new index that more accurately reflects this rally attempt. It consists of 21 stocks in 18 different industry groups. It is sticking almost straight up after a powerful move in the last three days. If this rally is to fail this index should get hit fast and hard, which is exactly what you want. This FTD was caused by more talk from Europe so you must treat it a little carefully, but it looks like it might produce some worth while gains. Jerry