::: Today’s Market Action :::

In a bit of reversal of fortunes, it was industries beaten down recently (oil, metals) that outperformed while the techs, led by an Intel earnings disappointment and another Cisco downgrade that provided the catalyst for some tech profit taking.  Actually it was a bit more than profit taking today as volume came in significantly higher than average and higher than yesterday.  While one day of distribution won’t derail a market rally, this most likely sets up at least a bit more selling in the coming days and the possibility of a retest of key support levels.  It won’t pay to panic at this point, but some caution should be exercised.

::: 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 Jan 17th 2007

Nasdaq: DOWN .74% today with volume 13% ABOVE average
Nasdaq ETF (QQQQ) DOWN .82%, volume 11% ABOVE average
Dow: DOWN .04%, volume 4% ABOVE the average
Dow ETF (DIA): UP .04%, volume 10% ABOVE the average
S&P ETF (SPY): UP .04%, volume 28% BELOW the average
Russell Small Cap ETF (IWM): DOWN .43%, volume 43% BELOW 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 not get dragged down with the Nasdaq today, an encouraging sign for the bulls.

Summary:

* Advancers led Decliners 213 to 211.
* Advancers were up an average of 1.21% today, with volume 6% ABOVE average
* Decliners were down an average of 1.43% with volume 1% BELOW average
* The total SI Leading Stocks Index was DOWN .1% today with volume 3% 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): 
Technology, Broker/Dealers, Retail, Heath Care Providers, Semis
                                              
* Current Lagging Sectors/Industries (over last 30 trading days): 
Natural Resources, Energy, Oil, Commodities

* Today’s Market Moving Industries/Sectors (UP):
Oil, Home Construction, Oil Services, Energy, Gold, Commodities

* Today’s Market Moving Industries/Sectors (DOWN):
Technology, Transports, Semis, Broadband, Retail

::: Stocks :::

Sorry, as much as I’d like to highlight a stock of the day today, there weren’t big moves in high quality stocks interesting enough to highlight here today.