Jerry Samet
09-09-2015, 11:23 PM
The market started off strong today in what looked like a continuation of yesterday’s rally. It didn’t last long as the major averages saw their highs in the first ten minutes of trading. They then staged a nasty reversal and sold off into the close. Late weakness saw all the major averages finish at their intraday lows, the opposite of yesterday. The COMPQ lost 1.15% while the SPX declined 1.39%. Semiconductor stocks lost the most with the SOX losing 1.80%. Volume was higher across the board and higher than average on the New York. Leading stocks were lower as well but less than the overall market. The older version of the leaders index was down .69% on higher volume and the new version(I will post both for a while as I don’t have as much confidence in the new one since it only has fifteen stocks) lost only .07% on lower but above average volume. The nature of the early reversal is troubling and a distribution day right after a follow through is usually fatal to a rally attempt. It looks like the recent volatility will continue and the sidelines are probably the best place to be until things settle down. Jerry