Jerry Samet
12-20-2014, 11:50 AM
The market had a pretty good session yesterday. After two sessions of large gains it would not be unexpected for the market to correct at least a little. Instead we saw some continued modest gains. The fact that the major averages could hold those gains and even build on them a little is a positive sign. The market opened higher and held those gains for the rest of the day. The New York averages led the way higher with the SPY higher by .46% while the COMPQ gained .36%. Both closed in the upper half of their intraday trading ranges, a sign of support. Volume was very high as a result of the expiration day that occurred Friday, but this would still seem to be an accumulation day. Leading stocks were mixed on the day as the leaders index was about flat with a decline of .10%. Volume also increased on the leaders, as would be expected, but the lack of progress is something to watch. With the recent decline in the market there are many stocks in the index that are broken and may well hold the index back. That being said the pickings are still slim. There are few quality growth stocks that are set up well or are rallying strongly. Few charts look attractive and we will likely see the major averages outperform leading stocks if the market rallies again. The MEM has already started getting back into the market and Monday will be the first day that we could get a legal follow through. If that happens getting some exposure through an index etf would be a good way to start. Either way the market should be entered with a degree of caution. Jerry