Jerry Samet
03-04-2014, 11:17 PM
The market had a powerful rally today. Hope that tensions in Ukraine were easing reversed yesterday’s losses and the major averages gapped higher at the open and spent the rest of the day consolidating their gains. They all finished at or near their intraday highs with the COMPQ up 1.76% and the SPY higher by 1.53%. The small caps were the strongest with the RUT gaining 2.75%. Virtually all the major averages made new all time or 52 week highs. The best part of the day’s action was the volume. It was much higher across the board, showing there was real buying by large players in a real follow through type day. The action of the leading stocks was even more impressive. The leaders index rose 5.45% with strength in almost all components of the index. A 32% gain in VIPS really helped but there were seventeen other stocks in the index were up in multiple percentage point moves. Only two stocks in the IBD 50 were down on the session. The only negative on the day was the fact that the move in the leaders index came on low volume. It is hard to argue with the positive recent action in the market. It is impossible to know how long this rally will last, but as a wise man said, you have to make hay when the sun is shining. The sun is shining now. Jerry