Tuesday, November 14, 2006

Late Day Momentum Makes An Appearance

The market put in another very solid day. The housing sector led the way (+3.5%), followed by semis (+2.8%) and retail (+2.4%). Tech overall fared very well, as growth stocks outperformed.

Volume levels rose today, making for an accumulation day on both the SPX and the Nasdaq, the 2nd in a row for the Nazz. Moreover, the Nazz has posted signs of accumulation in 5 of the last 7 sessions! Glad I put more money to work when I did.

Despite the run to new highs, the ISEE actually fell 7% to 135. I would have expected to see a much higher reading. Breadth was also strong today, with more than +1500 net advancers on the NYSE, and 325 new highs.

Oil and bond yields were both lower on the day, which should continue to help boost stocks. This week is options expiration week, which could bring some volatility. But next week is Thanksgiving, which is often a bullish period for the market.


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