Jerry Samet
08-25-2014, 11:01 PM
The market had a solid rally day today. After a strong open the major averages made their highs of the session a couple of hours into trading. They held most of their gains with the New York averages leading the way. The SPY was higher by .48% and closed near the top of it’s trading range while the COMPQ rose .41% but closed in the lower half of it’s range. Volume was mixed, lower on the New York and higher on the Nasd. Both were well below average and likely will be for the rest of the week. Leading stocks had a better day than the overall market with the leaders index climbing 2.22% on higher volume than Friday but still well below average. The index broke above it’s recent consolidation and set a new high on both a price and a relative strength basis. Several stocks, such as KANG and AMBA broke out. The fact that the index’s recent consolidation was contained by the short term 9dma shows solid performance by quality growth stocks. We will not know the real commitment of large institutional players until next week, the path of least resistance is up. Jerry