Stocks turned a day of listless action with minor losses into a day of gains, as the market ends an election week how it started.
At the close, the SP 600 led to the upside with a .7% gain, the Nasdaq rallied .6%, the SP 500 gained .2%, and the DJIA lagged with a .06% gain. The IBD 100 rallied .3%, lagging the tech and small caps.
Volume fell substantially across the board, due to the Veteran's Day holiday. Breadth was positive by a 2-to-1 margin on the NYSE and by a 3-to-2 margin on the Nasdaq.
For the week, the DJIA gained 1%, the SP 500 rallied 1.2%, the SP 600 gained 2%, and the Nasdaq led the way with a 2.5% gain. It is very nice to continue to see the Nasdaq and SP 600 outperform after lagging at the start of the rally.
The standouts on the session were the Transport stocks. Gold and silver, yesterday's biggest winners, took it the hardest today with a 2.5% haircut. This volatile action is too much for me. I will leave this market to the ever-so-smart future traders.
The four month old rally is still in a strong uptrend. It has not been easy trading but stocks are making gains and holding them. Sure some blow up here and there but normally it is after already locking in gains. A small cut is always better than having an artery sliced.
This rally still has plenty of mojo and the correction everyone is looking for now has the feel, if it happens, that it will not be much. I believe I hit on this point yesterday but seeing it work today proves that possible short covering or under-invested bulls still have work to do.
Stocks are doing a better job this week than they were last week. They are trading much firmer and in much calmer fashion, for the most part. The earnings season is always rough on stocks and this one was no different. Throw in a mid-term election and you can't blame stocks for being so volatile. Traders are an emotional beast. And those emotions can be reflected by traders feeling like they are missing some gains. That fear of under performance will surely lead to some pressure on the traders to step up and bid stocks up. If not, then we take the appropriate action.
Dip buyers are still there and the bears still have no momentum going for them. Nothing happened today that has changed the current intermediate market conditions.
Please, read my last five post, to get a firm handle on the current situation of what the market is actually doing; not opinions from morons who think they know what the market is going to do. NOBODY CAN PREDICT THE FUTURE. You need to understand this. I repeat, NOBODY EVER CAN PREDICT THE FUTURE, WHEN IT COMES TO THE MARKET.
I will see you at Investors Paradise. Aloha!
New swing longs: FBNW FLML NG
Adding to current longs: AMAG MSTR LMRA SOFO
Watchlist: SPP VICL ONI
Nice ETF: IGM
No comments:
Post a Comment