Jerry Samet
01-03-2013, 09:59 PM
The market did pretty well today in consolidating the gains of the last two days. After opening a bit lower the major averages tried to rally but then the minutes of the last Fed meeting were released showing growing opposition to QE and the market sold off. The selling was contained and the losses small in relation to recent gains. Volume was lower across the board so there was no distribution. This is the kind of orderly pull back you want to see after a solid advance. Leading stocks performed slightly better than the overall market as the leaders index rose .37% on lower but still above average volume. The index closed about where it opened but it hit a new closing high that was confirmed by new highs in the RS line. The weekly Coppock has now turned up and barring a major sell off tomorrow will give a buy signal this week. This will add confirmation to the recent FTD and the drop off in distribution days yesterday and today also helps. Tomorrow we get the employment report and that will set the tone for the day’s trading, but it looks like cautiously long is the right posture at the moment. Jerry