::: Today’s Market Action :::
Today, the market doesn’t need a plunge in oil to get it surging higher and that is a good sign. It’s fueled on the hopes of a possible rate cut and volume is extremely robust as institutions put money to work with more aggression. This is the kind of action big bull runs are made of. While I myself have added a significant portion of cash to the long side earlier today, I still remain somewhat cautious up at these levels and will maintain a couple short positions as a hedge. Next potential resistance areas loom – Nasdaq 2300, S&P 1350 and Dow 12000. All may be hit in the next day or two so keep an eye on them. If you’ve been on the sidelines for the past couple days and feel like you’ve been left out, don’t chase this market. Make it come to you… it will.
(Note: volume averages are based on the average over the past 50 days)
Data as of 2:45PMEST
Nasdaq: up 1.69% today with volume currently tracking 11% ABOVE average
Nasdaq ETF (QQQQ): up 1.79%, volume 23% ABOVE the average
Dow: up .85%, volume 20% ABOVE average
Dow ETF (DIA): up .88%, volume 44% ABOVE the average
S&P ETF (SPY): up .89%, volume 1% BELOW the average
Russell Small Cap ETF (IWM): up 1.87%, volume 7% BELOW the average
::: SelflInvestors Leading Stocks :::
SelfInvestors Leading Stocks are faring much better today than they have in recent days but still aren’t seeing a ton of momentum just yet. Volume is just a hair above average for advancers today.
Summary:
* Advancers Leading Decliners 261 to 58.
* Advancers are up 1.91% today, with volume right at the average
* Decliners are down 1.72% with volume 75% ABOVE average
* The total SI Leading Stocks Index is up 1.25% today with volume 14% ABOVE 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: Software, HomeBuilders, Retail, Technology and Consumer Services
* Lagging Sectors/Industries – Energy, Energy, Energy.. and Energy AND Gold (still no change here)
* Today’s Market Movers (UP) – Surprisingly Energy is leading the way today.. is this the bottom in Energy? We may be close.. I’ll have a report on this sometime next week. Homebuilders and Biotech also seeing some big buying today.
* Today’s Market Movers (DOWN) – Gold stocks getting whacked again 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 Iconix Brands (ICON), which was highlighted in the premium Stock Watch report this morning. Just one of several Stock Watch stocks moving big today!
ABOUT: Iconix Brand Group, Inc., formerly known as Candie’s, Inc., is a brand management company focused on licensing and marketing a diversified portfolio of its own consumer brands. The Company owns five brands, Candie’s, Bongo, Badgley Mischka, Joe Boxer and Rampage, which it licenses directly to retailers, wholesalers and suppliers for use across a range of product categories. The Company also continues to arrange, as agent, through its wholly owned subsidiary, Bright Star Footwear, Inc., for the manufacture of footwear products for mass market and discount retailers under their private label brands. In July 2005, the Company acquired the principal assets of Joe Boxer Company, LLC and three of its affiliated companies. In September 2005, Iconix Brand Group, Inc. acquired the principal assets of Rampage Licensing, LLC. In April 2006, the Company acquired the MUDD brand from Mudd (USA) LLC. In August 2006, it acquired the London Fog brand from London Fog Group Inc.
FUNDAMENTAL: Not a company with a great history of earnings and sales growth but is currently one of the fastest growing retailers around. Sales have doubled and earnings have nearly doubled in just the last 9 months and the company isn’t expected to slow down anytime soon.
TECHNICAL: Just minutes ago it broke out of a good looking base with volume well above the average.
SELFINVESTORS RATING: With a score of 51/60, one of the highest rated retailers in the database.