What a hectic day today was, with a move into a new place. But who cares about that? Did you see the market? Wow is the only way to describe it.
Despite Katrina and all the horrible scenes coming from the south, the market rallied today across the board and did it on STRONG volume. I guess I should have seen this coming, yesterday, when I saw all the strong stocks show up on my scans after that early reversal from the lows. All the new swing longs that I had as new buys yesterday was the ultimate "poker tell" that something big might be about to happen. And it did.
Stock climbed until the close with the SP600 up 2.1% and IBD up 2.5% to lead the way. The indexes finished the day on volume that was very impressive. So impressive I am repeating myself again. NYSE and SP600 volume was the highest since June and the Nasdaq's volume was above average and higher than yesterdays. Very positive action. It shows that institutional investors went to work and accumulated stocks everywhere. Breadth was positive at around 3 to 1 on the NYSE, and 190 out of 197 of Investors Business Daily industry groups finished positive. Very impressive numbers. And to go along with all these numbers there were a ton of breakouts today in oils, biotechs, semis, and anything building/construction related.
Despite all of this, I heard from a friend today how sick he was of how bad the market is doing. I told him he watches too much CNN and should instead study the markets price and volume patterns. If you do that, days like today will not surprise you. Instead you will be ready for them and understand why they happen.
The constant negative news, terrorism, $70 oil, the Fed, Katrina, and just about anything else the media is droning on makes it appear the sky is falling. Nope. Despite all this terrible news, the SP600 is up 59% since the 2000 top?!?! Some terrible market. The SP500 on the other hand is down 18%. I find this incredible, considering my friends when asked how they think the market has done since 2000 think it is down 50% plus.
Follow the indexes, leading stocks, and sentiment numbers and you will not have to rely on the media to get your market advice. Then too someday you can release yourself from this constant negative tone that I hear and see everyday on TV.
All trends are up: Short term, Sub-Intermediate, Intermediate, and Long term
New Swing Longs: MINI HXM TDW NVR LAF PRAI ABIX CHB FCEL TXI MTZ RMIX ECOL TNB HAWK PYX MCY
Longs Outperforming Market: USLM APT SYNC CLHB IO ASTE ARD RES THE VAS HOS DGIN SIRF ENG SYNM SUPX
New Swing Shorts: ETR ACGL SMTC
Shorts Outperforming Market: CBRL
On The Radar Screen: FSTR DLA FADV CWBS GRVY GV TRCA WEL PLUG VSR PHEL TTES MPR REF
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