::: Today’s Market Action :::
On Tuesday, the market plummeted mid day following news of the Yahoo warning and the Thai coup. It didn’t take long for the market to show its resiliency and recover most of the days losses. The market continued its resilient ways after traders immediately sold positions following the Fed announcement by quickly reversing the other way to close near the highs of the day. Today, we find ourselves in a similar position. We started strong at the open, and stayed green for a bit until a bearish Philly fed index was released. It sent the market plummeting mid day once again. Will the market recover and recover today’s losses once again? We shall see. While trading volume isn’t quite heavy enough for me to believe we’ll get distribution at this point, but if the selling accelerates in to the close we could see a day of distribution (institutional selling). The final 2 hours of trading today, in my opinion, will reveal much about where we are headed in the short term.
(Note: volume averages are based on the average over the past 50 days)
Data as of 2:15PMEST
Nasdaq: down .42% today with volume currently tracking 6% ABOVE average
Nasdaq ETF (QQQQ): down .3%, volume 3% ABOVE the average
Dow: down .58%, volume 4% BELOW average
Dow ETF (DIA): down .64%, volume 22% ABOVE the average
S&P ETF (SPY): down .44%, volume 7% ABOVE the average
Russell Small Cap ETF (IWM): down -1.05%, volume 10% ABOVE the average
::: SelflInvestors Leading Stocks :::
Leading stocks that make up the SelfInvestors Breakout Tracker database are holding up quite well today, despite the overall selling. The Index is basically flatlining today.
Summary:
* Decliners Leading Advancers 213 to 139.
* Advancers are up 1.34% today, with good volume … 14% ABOVE average
* Decliners are down 1.41% but volume is right near the average at below 2%
* The total SI Leading Stocks Index is down .33% today with volume a bit above average at 5% ABOVe
* Where’s the Money Flowing *
Many 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, Technology, Retail, Consumer Services
* Lagging Sectors/Industries – Energy, Energy, Energy.. and Energy AND Gold (still no change here)
* Today, Oil & Gold are finally seeing some buying and moving with a little volume
* Profit taking in Retail, Nanotech, Semis and Homebuilders (yes, there was decent money made in homebuilders in the past couple weeks!)
** Stocks **