A plethora of mergers and acquisitions couldn't stop the market from hitting a small bump in the road. This small bump took the SP 500 and the DJIA off of their intraday highs helping them close in the red. This ended both indexes six day winning streak. The Nasdaq, led by the Semi group, hit new five year highs.
At the close, the Nasdaq led the way with a .3% gain, the SP 600 followed with a .25% gain, the SP 500 went the other way and finished down .05%, and the DJIA did the same with a .2% loss. The IBD leading indexes led the market today with a .4% gain, showing that even with some selling leading stocks are holding up well.
Volume was lower on the NYSE and the Nasdaq. The good news about the lower volume is that the big indexes fell with the lower volume. This is what you like to see when a market pulls back a little. Even though this really isn't a pullback.
Breadth was basically even with advancers barely over decliners on both indexes.
Techs, leading stocks, and small caps held up well which is very positive considering the bears started a very short but nasty selloff. Things could have gotten much worse considering the overbought nature the markets are currently in.
The other good news about today's market was that the SOX gained 1.8%, the DJ REIT index gained 3%, and we are in the midst of a bunch of mergers and acquisitions signaling that this market is very strong and companies see value out there.
The bad news is the same thing I mentioned last week. The market feels very overbought here but that is in no way a reason to get bearish and start shorting the market. That is emotional trading. That kind of trading has never been the way the great masters in the market made millions. They use sound proven rules; not feelings.
Even though the market seems to be losing some steam on a very short term basis, taking a longer term bearish take is just not smart or advised here with so many of my current holdings showing few signs of wanting to give up.
It is going to be a slow week. Remember, the market is closed on Thursday and Friday is a half-session with markets closing at 1PM EST. Don't try to look too much into the action this week. It is sure to be choppy few days but as usual during a holiday shortened week it will historically be a bullish week. So don't expect a "crash" this week.
Have a great day and I will see you at Investors Paradise.
New Swing Longs: CMG LQDT OEH BUF GVP
Adding To Current Holdings: GCOM
New Swing Shorts: NONE
**NUMBER BELOW IS % STOCK IS UP SINCE LONG TAKEN (only 25% or higher listed)**
Longs Up On The Day (low vol non-IBD excluded): JST-51 HMSY-27 SVNT-72 IGLD-27 TTEC-58 BAM-51 IHS-87 IMA-26 INWK-53 PRFT-28 SEIC-25 CTCM-28 OMTR-51 MA-92 SOFO-71 ALTH-83 AMAG-42 REGN-44 IAAC HRT ININ NSTC LRCX SUAI UCTT SMSC XING LTM PCCC ISE BOT CNH VCLK MVSN FTEK ICFI BMTI EVEP EVR BMA LINTA AWH CBF TSYS GCOM SCI NHP NEXC IFOX ISIS BULK IONA MNG CCO TRT QD NU SFL OME RMR MALL RENT
Watchlist: TLF DAKT SUPX DLB MDD BRR AZS HINT TWTI NDAQ MKTX
Cut All Your Losses: INO
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