Market Analysis and Summary
The major indexes all rallied and finished the session at or near all-time highs on Friday. Unfortunately, volume declined across the board, although considering it was a Friday in the middle of the Summer, with the thick earnings season just about to get underway, it’s not surprising. While a pickup in volume would have been ideal, especially as the market was making new all-time highs, its overall price action has been strong and constructive.
More importantly, as the market has reasserted itself and climbed back to new all-time highs over the last few weeks, it has been supported by a healthy, broad base of leading growth stocks. As long as leading growth stocks continue to act well and the uptrend in the general market remains intact, we would continue to build long positions as entry point present themselves, however, slowly and with the utmost selectivity.
Stay closely in tune with the rotation through the market’s leadership and remember, “buying right” is critical. Don’t buy a stock more than 1-2% past its pivot point and make a habit of eliminating laggards and taking at least partial profits on extended names.
NOTE: Check when a company is due to report EPS, before initiating a position. These dates change frequently and sometimes at the last minute, so double and triple check to be sure.
The NASDAQ rose 0.61% and finished the session just shy of a new, all-time closing high as volume declined.
The Russell 2000 rose 0.22% and finished the session at a new, all-time closing high, although volume declined.
The S&P 500 rose 0.47% and closed at a new, all-time high, although volume on the NYSE declined, stealing the power from its punch.
The DOW rose 0.39% and closed at a new, all-time high, although volume declined.