Jerry Samet
02-09-2013, 12:16 PM
The market had a solid up day yesterday with the major averages rising between .47% on the NYA and .91% on the COMPQ. They finished near the highs of the day while volume was lower across the board, which is not unusual on a Friday. Leading stocks did pretty well also and outperformed the major averages. The leaders index rose 1.16% on lower and also below average volume. The index is back above both the 9 and 17dma’s but remains below recent highs. This is a difficult market with large swings in both directions. This is not unusual in late cycle rallies and is something you see late in rallies. The rally is still intact but there are cracks showing. We are very late in this cycle that began in March of 2009 and major tops show higher volatility and large price swings. Major tops are a process that can take several months to play out. We may be in this topping process but you really can’t be sure until after it is over. For now it is right to be long, but caution is warranted. Jerry