::: Today’s Market Action :::
We have a victor in last weeks stalemate between the bulls and bears – the bulls are making a statement today with some volume behind it. Typically the market is quiet in the days ahead of a Fed meeting, so the action is unusual and highlights the continued underlying strength the market is showing. Perhaps this market is forecasting a rate cut in the future? I doubt that will happen this time around, but it’s not out of the question early next year.
As always, pay close attention to the close today. While the action is decidedly bullish up until this point, I would be on the lookout for a reversal that would provide further evidence of a short term top. It should be noted that the market has taken out intraday support levels, so the potential for a reversal today is there.
(Note: volume averages are based on the average over the past 50 days)
Data as of 2:00EST
Nasdaq: UP .56% today with volume 5% BELOW average
Nasdaq ETF (QQQQ): UP 1.05%, volume 21% ABOVE the average
Dow: UP .86%, volume 23% ABOVE average
Dow ETF (DIA): UP ..82%, volume 15% ABOVE the average
S&P ETF (SPY): UP .52%, volume 6% BELOW the average
Russell Small Cap ETF (IWM): UP .32%, volume 23% BELOW the average
::: SelflInvestors Leading Stocks :::
SelfInvestors Leading Stocks are up today, but volume levels don’t indicate robust buying today which is a bit of a red flag.
Summary:
* Advancers leading Decliners 222 to 108.
* Advancers are up an average of 1.39% today, with volume 10% BELOW the average
* Decliners are down 1.00% with volume 3% ABOVE average
* The total SI Leading Stocks Index is UP .61% today with volume 6% BELOW the average
* Where’s the Money Flowing *
Many investing 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: Retail, Consumer Servics, HomeBuilders, Biotech, Software
(Biotech makes its first appearance on the leaders board)
* Lagging Sectors/Industries – Remains just as it has for past several weeks: Oil, Gold, Natural Resources
* Today’s Market Moving Industries/Sectors (UP) – Retail and Consumer Services are leading this market higher today.. it’s a bit of a concern that tech isn’t participating much
* Today’s Market Moving Industries/Sectors (DOWN) – Oil Services and Homebuilders are seeing some significant selling 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. Today’s stock is CTC Media (CTCM), a Russian TV broadcaster breaking out to new all time highs.
ABOUT: CTC Media, Inc., operates the CTC Network, a Russian television network offering entertainment programming targeted principally at the 6-54 year-old market segment, and the Domashny Network, a Russian television network targeted principally at 25-60 year-old women. CTC’s signal is broadcasted by over 300 television stations and local cable operators, including 14 owned-and-operated stations and 17 unmanned repeater transmitters. Domashny’s signal is broadcasted by approximately 100 television stations and local cable operators, including four owned-and-operated stations and two unmanned repeater stations. The signals of CTC and Domashny cover approximately 100 million people and 50 million people in Russia, respectively. The Company organizes its operations into four business segments: CTC Network, Domashny Network, CTC Television Station Group and Domashny Television Station Group.
FUNDAMENTAL: Big time growth for the last several years – sales and earnings have doubled in the past 2 years. Not too shabby for a television network! ROE is very good while margins are outstanding and soaring.
TECHNICAL: Today the stock is clearing its first significant base since going public in June. The base isn’t what I’d call exceptional but probably good enough in a strong market.
SELFINVESTORS RATING: With a total score of 51/60 (27/30 for fundamentals, 24/30 for technical), CTCM is considered a top breakout stock