Continuing the trend of the past few weeks, the market looked tired again today as concerns about rising bond yields and the diminishing possibility of a rate cut left traders with an itch to take some profits off the table. While technically it was another day of distribution, it wasn’t as bad as it could have been. Selling volume wasn’t all that severe in the S&P and Dow and the Nasdasq finished well off the lows. I’d call this relatively healthy selling today and wouldn’t mind seeing a few more of these in the coming days to wring out the excess a bit. Enjoy the rest of your night.
::: 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 June 5th 2007
Distribution across all indices but not at all severe – actually quite healthy considering the run we’ve had.
Nasdaq: DOWN .27% today with volume 10% ABOVE average
Nasdaq ETF (QQQQ) DOWN .13%, volume 44% ABOVE average
Dow: DOWN .59%, volume was 2% BELOW the average
Dow ETF (DIA): DOWN .42%, volume 31% ABOVE the average
S&P ETF (SPY): DOWN .4%, volume 22% ABOVE the average
Russell Small Cap ETF (IWM): DOWN .40%, volume 40% 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 held up quite well today and were about in line with the Nasdaq.
Summary:
* Decliners led Advancers 266 to 148
* Advancers were up an average of 1.22% today, with volume 24% ABOVE average
* Decliners were down an average of 1.15% with volume 6% BELOW average
* The total SI Leading Stocks Index was DOWN just .3% today with volume 4% 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 gauging 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/si/industry_tracking/
* Current Leading Sectors/Industries (over last 30 trading days):
Semiconductors, Transports, Agriculture, Networking, Nanotech, Aerospace/Defense
* Current Lagging Sectors/Industries (over last 30 trading days):
Bonds
* Today’s Market Moving Industries/Sectors (UP):
None today
* Today’s Market Moving Industries/Sectors (DOWN):
Real Estate, Home Construction, Utilities
::: 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, short on time tonight so no stock of the day, but take a look at these top rated stocks that moved with volume today – Sunpower (SPWR), Health Grades (HGRD) and Internet Gold (IGLD)
* Internet Gold was a recent Stock of the Day pick.