Stocks started off the week on a great note, possibly in thanks to another active day full of mergers & acquisitions and falling oil prices. Whatever the case may be, stocks are following the path of least resistance and bad news (for example, PFE) is being ignored.
At the closing bell, the SP 600 and Nasdaq led the way with 1.5% gains, the SP 500 hit a six-year high rallying .9%, and the DJIA rallied .7%. Leading stocks outpaced the broad market, as the IBD 100 rallied 1.7%. That is just what I like to see, in my rallies.
Volume was lower on the Nasdaq by a tad and much lower on the NYSE. Volume on the NYSE fell over 20%. Breadth was positive, however, by quite a large margin on both exchanges. There were seven advancers for every three decliners on the Nasdaq; on the NYSE advancers outpaced decliners by a 3-to-1 margin.
Chip stocks were the leading sector on the day, rallying 2%. The IBD Leasure-Gaming, Equipment group was the biggest winner by sector with a 4.8% gain.
The mood coming into today was more negative than last week. After the selling that we had last week, some bears decided to get vocal and press there luck on the top being in. Obviously, they were wrong and got trapped as a short covering rally occurred today.
As was evident in the support on the selloffs last week, today was really no shocker to me. I mentioned this weekend how it looked like--via individual charts and the market--accumulation was occurring from the intraday selloffs. Today showed that is what indeed was happening.
With 45 out of 100 issues in the IBD 100 and 100 out of my 250 longs up 2% or more today, it can be said that today was very impressive, without a doubt. This has clearly been one of the best days of this rally. Even with the last hour cooling and low volume on the NYSE today, today was still extremely impressive. You can nit-pick all you want; the final figures tells the tale.
The trend is up and is your friend until it is not up. Oil and Metals are becoming the new leaders again as sector roation into these stocks is clearly obvious by now. Just by looking at all the Oil sectors I mentioned this weekend and stocks in the Metals sector like NUE STLD and AP, you can see where the strength of this rally is AGAIN.
If there are any perma-bears out there that have been bad mouthing this whole rally, I would love to hear from you and hear how you are doing on the old profit & loss statements. Something tells me I will not be getting any responses.
We have the ISM Service Index number tomorrow and this should dominate all the headlines out there, unless something more interesting happens.
Aloha and I will see you at Investors Paradise.
New Swing Longs: ASCA NUE OPLK OTEX RKT RCRC FTGX BBI WYNN SMF OSIR HINT
Adding to position: FLML
Complete Sells: MY TWO SHORTS!!!! HCBK ELP. Sell most of BULK.
**Stocks up 25% or more have number listed**
Longs Up On The Day: STEC-57 IGLD-63 BONT-28 IHS-96 JST-54 ICE-30 IAAC-32 TYL-56 AOB-92 HMSY-28 HRZ-77 FTEK-36 ACP-28 DKS-30 AOI-29 PSPT-39 SEIC-25 CHINA-74 DA-52 CPA-38 NU-25 TTEC-55 CXW-36 TRBN-36 ALTH-108 CVO-131 PERY-27 SIGM-31 ABI-32 IDEV-45 BMRN-31 REGN-31 LWAY-34 GMTC-30 PTT-74 KHDH-54 MIKR OMCL BLUD SKX INAP CNH IFOX ININ PCCC MAIL RBN LRCX PRFT IIG MSTR IMKTA CELG TDY TSRA UCTT FMCN LTM VCLK APLX TSG ISE ETE COH AHS BMC BMA AMSF CMT RJET IMA WTS CMG BOT CAM NSTC MVSN ROG ACGL LQDT DECK CRT ACHN BMTI QI ICFI SGZ ULTR FLML ISIS OMNI ANAD INPC CLRT ACTU CCBL HURN TZIX AW LNET CTEC RAH ALXN NRF ETR HNZ CAB SCI ISBC TMO LNUX OEH IWOV GRC OKS GENT BITI RMKR
Long: 263 stocks
short: 0 stocks
Watchlist: CHDX SWHC CNQR CHAP HWCC X TIE HMIN EDU ZOLL CACB CTRN KBW SXCI GOLF SGEN STLD BIG SWS DVAX SINA THS SUG LYV HSIC BJ ISSC JJSF VTO FNDT MTLK ECMV
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