Market Analysis and Summary
The major indexes continued to make constructive progress over the last couple sessions and all closed at or near, new all-time highs yesterday. More importantly, the uptrend in the general market continues to be supported by a healthy, broad base of leading growth stocks. The distribution count fell to 5 days on the NASDAQ and held steady at 4 days on the S&P 500.
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 market rotation and remember, “buying right” is critical. Don’t buy a stock more than 1-2% past its pivot point and get into the 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 0.47% on heavier volume and closed at new all-time high.
The Russell 2000 rose 0.28% on heavier volume, but finished in the upper half of its range for the day and slightly below recent all-time highs, which is constructive.
The S&P 500 rose 0.26% and finished the session at a new all-time closing high, as volume on the NYSE picked up slightly.
The DOW fell 0.25%, but finished the session near its high for the day as volume expanded, which is constructive.