Jerry Samet
02-10-2015, 11:04 PM
The market had a good solid up session today with the major averages opening higher and gaining strength during the entire session. Late strength saw all the major averages finish at their intraday highs, a sign of strength. The COMPQ led the way with a gain of 1.30% while the SPX was higher by 1.07%. Volume was mixed, higher on the Nasd and slightly lower on the New York. The day’s action caused IBD to go back to a resumed uptrend call, but we have seen this movie before. Much of the rally was caused by hope that Greece would work out a deal on it’s debt, but that has been reversed many times before. Leading stocks had a good day as well with the leaders index higher by 2.61% and closing at it’s intraday highs. Volume was lacking as it was lower than yesterday and well below average. The index did however close back above it’s 9 and 17dma’s. Both the major averages and the leaders index remain in the trading ranges they have been in for months. You would expect to see a lot of breakouts on a strong up session like today, but the breakout screen in the Marketsmith 250 only showed three breakouts. In addition it showed more stocks down on volume than up on volume. You never know when a rally will develop, but this late in a cycle and with so few quality growth stocks producing worthwhile gains it is hard to get to excited. I would treat today’s action with a good degree of skepticism. Jerry