Stocks started the week on a positive note, ahead of the FOMC meeting Tuesday, with gains on three of the four major market indexes. Some more corporate deal-making in mergers and acquisitions probably helped keep the bullish mood going.
At the close, the DJIA, SP 500, and Nasdaq all gained .2% and the SP 600 diverged with a .20 cent tick lower. The good news, as has been the continuing theme, was with leading stocks. Once again, the IBD 100 outpaced the market with a .5% gain.
Volume was slightly higher on the Nasdaq and was about 4% lower on the NYSE. The light volume is the usual before an FOMC meeting.
Breadth was positive on the NYSE by a 10-to-7 margin and was even on the Nasdaq.
Today was a choppy day of trading on light volume. But the good news as was mentioned above came in the form of my stocks and leading stocks. They acted much stronger than what the overall market reads. Many leading stocks made 2% plus gains today. It was an OK day with nothing great happening. A typical pre-Fed day.
The worrisome part of today's action is the same as Friday's action. Stocks started weak, had a burst higher, but drifted to another positive close with a downtrending biase. This has the feeling of a heavy and/or cautious market. Normally after a big early reversal we keep buyers interested and work higher. Obviously, traders are more skittish ahead of the FOMC meeting.
But with movers like the Airlines today, I am not sure how much we have to worry about a nasty reversal. The AMEX Airlines Index rallied 1.9% today and many of the top stocks in this group produced solid gains today off a round of merger speculation. These stocks are leaders and today's outperformance should be no surprise to investors who buy strong stocks, growth stocks, and/or CANSLIM stocks.
We now look ahead to another famous FOMC meeting. Expect an unchanged outcome with the rate staying at 5.25%. What stocks will do I am not sure. But one thing for sure is it will be a whip one way then another whip in the other direction followed by a final trend definition into the close. That seems to be the norm. However, remember, that once something looks like a given...it no longer is.
Please read the last five post in this "daily market analysis" to understand exactly where we stand right now in this current uptrend.
Aloha and I will see you at Investors Paradise.
New Swing Longs: NYX AGR MXIC
Adding To Existing Positions: NSTC GRRF IMKTA
New Swing Shorts: NONE
**stocks w/ # are up 25% or more since long. only stocks up 25% have numbers**
Longs Up On The Day: KNOL-176 AKAM-240 AOB-124 BRLC-113 JST-97 MIKR-25 HRT-54 NSTC-25 CPA-48 ICE-52 IAAC-43 INWK-65 AOI-38 IGLD-63 STEC-58 PSPT-32 HMSY-29 FTEK-45 BMA-30 DA-52 CHINA-79 DKS-30 TTEC-59 OMTR-73 PLB-29 ISIS-36 MOS-29 MALL-30 LCC SRSL GRRF CELG CMT CCO MSTR MVSN FMCN BLUD INAP IMKTA DECK MAIL ROG RCRC PRFT TSRA GLDN BMC LINTA EVEP NHWK ASCA LRCX NITE MBLX KALU OSIR EVR TWLL ULTR EFUT BMTI TSG MDF UAUA LNUX ADBE GSIC CCBL SFL WYNN HURN CKSW HAS SCI HNZ MRB TGEN QD GLBC RENT INMD TNH CANI
Stocks On Radar Screen: CTRP NTGR SEH TAM MGM JCG OHB KBR HTZ H CAAS BIOM SBGI GT HA DENN MFA HHGP SINA VSNT MTLK
Examples Of Stocks I Would Take Profits/Losses On: SMF UCTT AFT ALTH AMOT LWAY
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