::: Today’s Market Action :::
Just as they have done many times before over the past few months, the bulls will not go down without a fight. A reversal off the lows after 2 days (ok one and a half) of heavy selling isn’t all that unusual as bulls and bears fight it out. What did surprise me was the V like, aggressive bounce off today’s low, with a finishing volume higher than yesterday’s. That’s the kind of key reversal action you typically see near the bottom of a correction. Does it mean we’re out of the woods and it’s time to get significantly long again? No, but it does mean we’re headed a bit higher from here in the short term, possibly to test the highs of the previous "dead cat bounce". It also probably signals that this correction won’t be quite as severe as once thought. What doesn’t change is that for most of you, the best option will be to ride this out on the sidelines until the market gives us a few more clues.
::: 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 March 14th 2007
Nasdaq: UP .90% today with volume 12% ABOVE average
Nasdaq ETF (QQQQ) UP 1.46%, volume 47% ABOVE average
Dow: UP .48%, volume 30% ABOVE the average
Dow ETF (DIA): UP .53%, volume 146% ABOVE the average
S&P ETF (SPY): UP .75%, volume 176% ABOVE the average
Russell Small Cap ETF (IWM): UP 1.13%, volume 133% 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 did just OK today.. by no means did they see intense buying.
Summary:
* Advancers led Decliners 298 to 135.
* Advancers were up an average of 1.47% today, with volume 3% BELOW average
* Decliners were down an average of 1.07% with volume 10% ABOVE average
* The total SI Leading Stocks Index was UP .68% today with volume 1% 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://selfinvestors.com/industry_tracking/
* Current Leading Sectors/Industries (over last 30 trading days):
Only safehavens utilities and bonds
* Current Lagging Sectors/Industries (over last 30 trading days):
Biotech, Banks, Gold Miners, Internet Infrastructure
* Today’s Market Moving Industries/Sectors (UP):
Home Builders, Broadband, Networking, Energy, Broker/Dealers, Oil Services
* Today’s Market Moving Industries/Sectors (DOWN):
None
::: 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.
Sorry, I’m short on time tonight – no stock of the day today.