Jerry Samet
02-14-2015, 11:50 AM
The market continued to work it’s way higher yesterday. The major averages opened higher and built on those gains for the rest of the day, finishing at their intraday trading highs. The COMPQ led the way with a solid gain of .75% while the SPX was up by .41%. Volume was lower across the board, partially due to the three day holiday weekend coming up, so big institutional players were not heavy buyers. Leading stocks were higher as well, but generally lagged the overall market. The leaders index was up by .18% on higher but still below average volume. The index had both new intraday and closing highs and finished in the upper half of it’s trading range. It did however close below it’s opening price, producing the red candle. The market is working it’s way higher, but this is not showing the kind of action you see in a strong rally. The number of quality growth stocks that are breaking out and producing strong gains is still very limited. Lasting rallies that have real legs generally produce large numbers of attractive stocks that work. We are not seeing that now. It is ok to be invested and try to make some gains, but I would stay pretty close to the exits. Jerry