After Market Report – Big Selling, But Not a Concern Just Yet

::: Today’s Market Action :::

Tonight I give you an abbreviated report .. it’s getting late, it’s been a long day.  Not much more to say other than we got some much needed selling.  Not even a great quarter from CSCO could save the day today as oil spiked higher and concerns about Democrat intentions weighed on the market.  The selling certainly wasn’t ordinary today.. in fact it was the heaviest selling in months which is of some concern and probably marks a short term top.  The good news is that the indices still maintain their upward trends and it is just one day.  Let’s see how those upward trends hold up in the coming days.

::: Major Indices Performance – The Numbers :::

(Note: volume averages are based on the average over the past 50 days)
Data as of 4:00EST – End of Day Nov 9th 2006

* Accumulation (institutional buying) today in the S&P and Dow

Nasdaq: DOWN .37% today with volume 20% ABOVE average
Nasdaq ETF (QQQQ) DOWN .53%, volume 11% ABOVE average
Dow: DOWN .60%, volume 17% ABOVE the average
Dow ETF (DIA): DOWN 55%, volume 20% BELOW the average
S&P ETF (SPY): DOWN .53%, volume 46% ABOVE the average
Russell Small Cap ETF (IWM): DOWN .91%, volume 10% ABOVE the average

::: SelflInvestors Leading Stocks :::

The Self Investors Leading Stocks Index is comprised of stocks in the Breakout Tracker, which is a database of the fastest growing companies near a breakout or having already broken out of a base.  Leading stocks didn’t get hammered today as selling volume wasn’t particularly intense in declining stocks, but overall it’s a good day.

Summary:

* Decliners led Advancers 265 to 121.
* Advancers were up an average of 1.69% today, with volume 72% ABOVE average
* Decliners were down an average of 1.67% with volume 4% ABOVE average
* The total SI Leading Stocks Index was DOWN .62% today with volume 25% ABOVE the average

* Where’s the Money Flowing *

Many investing websites provide leading industries based on price performance alone. However, without accompanying volume levels, this can sometimes be misleading.  The only way that I know of to gauge 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.  For a detailed look at how I go about gauging sector/industry strength please see the following post: http://investing.typepad.com/tradingstocks/2006/09/wheres_the_big_.html

* Current Leading Sectors/Industries (over last 30 trading days): 
Internet, Retail, Technology, Consumer Services, Biotech
                                              
* Current Lagging Sectors/Industries (over last 30 trading days): 
Semiconductors, Broadband and Homebuilders (appearing here again)

* Today’s Market Moving Industries/Sectors (UP):
Today, it was all about Gold

* Today’s Market Moving Industries/Sectors (DOWN):
Healthcare and Pharma, known targets of Democrats was the only area to get hit hard today.

** Stocks **

The stocks section will be an area where I highlight one stock selected from a group of stocks moving up with volume well above average and most likely breaking out of a base or consolidation.  In keeping with today’s theme of brevity, there will be no stock of the day today.

Leave a Reply

Your email address will not be published. Required fields are marked *