Jerry Samet
07-24-2014, 11:21 PM
After trading around unchanged all day the major averages finished little changed on the day. The COMPQ was lower by .04% while the SPY was higher by .05%. Volume was higher across the board so it counted as a stalling day on the SPY while the COMPQ just barely missed one. This added to an already high distribution count. All the major averages closed the day at or near session lows, a sign of weakness. Leading stocks did better than the overall market with the leaders index rising .72% on the heaviest volume in the consolidation structure. The index has been higher the last two days on higher volume and the index made new highs on both a closing and intraday basis. The RS line of the index also matched it’s high. There were a good number of buyable gap up breakouts, such as FB, SKX, and UA, mostly generated by good earnings reports. The rally is still not lighting any fires but there are a fair number of buyable stocks, so being cautiously invested is the place to be. I will be away for a few days, the updates will resume next week. Jerry