::: Today’s Market Action :::
It’s triple witching friday and that means a whole lotta volatility and strange movements in individucal stocks. The market opened up big out of the gates as traders were pleased with the tame CPI data and sent the Nasdaq surging above important resistance of the 200 day moving average and the June Highs around 2233. It didn’t take long for those gains to evaporate as the Nasdaq filled the opening gap, but finding support there. It’s been on the way back up and the odds are good for the market to finish the day in the green. Both the Dow and S&P have yet to touch their multi year highs, but are within striking distance. Expect volatility to increase as we near the close.. in addition to options expiration, the S&P will undergo some reshuffling.
** Market volume levels are meaningless for guaging health today, so I won’t be displaying those in this report.
::: Self Investors Leading Stocks :::
SelfInvestors Leading Stocks are stocks of the fastest growing companies in the world that are near a breakout or have already broken out of bases. These stocks comprise the Breakout Tracker database of SellfInvestors.com and are hand picked by me for inclusion based on sales/earnings growth, ROE, profit margins, management ownership and institutional buying. Only the best make it into the database. Tracking the health of these stocks is a very important piece to guaging the overall health of the market. The SelfInvestors Leading Index is an aggregate performance of the entire database of stocks (usually 300 – 400 stocks depending on the health of the market). I break it down into Advancers and Decliners and look at the price and volume movements of both throughout the day.
** Again, it’s meaningless to display volume levels but advancers are outpacing decliners today. Volume is a bit heavier in stocks moving to the downside today, but nothing to be too concerned about. Volume levels are relatively meaningless today.
::: Where’s the Money Flowing :::
Many websites just provide leading industries based on price performance alone.. without the volume, this can be misleading. The only way that I know of to guage industry/sector strength WITH volume levels is through the analysis of ETF’s. A couple years ago this was not possible, but as more traders/investors use ETF’s they become a much better tool for guaging the health of the market and seeing where the money is flowing (or not flowing). Using the proprietary SelfInvestors Demand Indicator score which measures price and volume movements, I’m able to quickly see which sectors/industries are seeing the greatest inflows of cash.
* Leading Sectors/Industries – Semis, Technology, Consumer Discretionary, Telecom, Consumer Services
* Lagging Sectors/Industries – Energy, Energy, Energy.. and Energy AND Gold.
* In keeping with the common theme of late, Homebuilders are leading the way again today. Also doing well is Software and Nantoech. Gold is getting a little bounce today with some volume
* Once again Energy is the only area of significant selling.
::: Stocks :::
This area still under development.