Jerry Samet
03-01-2014, 12:50 PM
The market started off strong yesterday and it looked like we would finish February with solid gains. There was a reversal when news came out that Russia had sent military forces into Ukraine. A late rally took the New York averages back into positive territory, but the Nasd averages closed with losses. The SPY finished up .3% well off it’s intraday highs and the COMPQ closed down .3%. Both were well off their lows, but early gains were lost. Volume increased considerably across the board so there was a distribution day on the COMPQ. Leading stocks reversed along with the market and were down on the day. The market pulse showed two quality stocks up on volume and twelve down, for a net of minus ten. The leaders index gave up early gains as well, but closed well off it’s lows for a pretty small loss of .09% on the session. Volume was higher and well above average, but the small decline did not produce a distribution day. The index traded below it’s 9dma but the late partial recovery allowed it to close comfortably above this moving average. Both the leaders index and the major averages remain above even their short term moving averages and the distribution count, while growing, is still at a pretty low level. The market and many leading stocks are acting a little more sloppy in the last few days but there has been no real damage done and the rally should continue at least in the short term. An update on the gold situation I talked about before is warranted. February ended yesterday and the monthly Coppock has now signaled on gold. It was a small upturn but a clear signal that the cyclical bear in gold that has been in effect for more than a year and a half is over and a new cyclical bull market has begun. There should be some good profits to be made in the next year in bullion and mining stocks. Jerry