Jerry Samet
08-11-2015, 11:17 PM
The market reversed yesterday’s rally today. Overnight China announced it was devaluing it’s currency and markets around the world sold off. The major averages opened lower and worked their way down most of the session, although a little late rally saw them close slightly above their intraday lows. The COMPQ fell 1.27% while the SPX declined .96%. Both finished near their intraday lows. Volume was higher across the board so there was distribution on all the major averages. This in in contrast to yesterday’s rally on lower volume. Leading stocks were lower as well, but held up better than you would expect on a day like today. The leaders index fell .47%, less than the major averages and closed in about the middle of it’s intraday range. Volume was very low on the day, showing less selling pressure in quality growth stocks than in the overall market. The index remains slightly below it’s short term 9 and 17dma’s. For a major economy like China to devalue it’s currency is a big deal. Perhaps the problems over there are greater than generally acknowledged. It remains very difficult to get anywhere in this trendless market and it is pretty much not worth bothering with. The beach was pretty nice today. Jerry