Market Wrap: A New Uptrend?
The market had one of its best days this year, as the Nazz led the way and posted a solid +2.3% gain. Volume was higher then yesterday, which is a good sign, but overall it was not as high as some of the down days we've had.
Breadth was also solid, but the Hi/Lo index is still bothering me, as it barely improved from yesterday. I know its early, but I want to see more stocks making new highs and less stocks making new lows.
While the media may point to the retail sales report this morning as the catalyst for the rally, there was more to it. What got the rally going today was that traders were revisiting the global growth story.
All of the stocks and sectors that had been associated with the global growth story had a great day. And the Yen goes hand in hand with this theme. You need to see the Yen go down for this thesis to work, and the Yen was down big today.
And with AMAT reporting great earnings last night, growth stocks were on fire today. RIMM gained +5.8%, AAPL +3.6%, GOOG +3.2%, and ISRG +4.0%. In the energy, materials, and infrastructure space there was a handful of stocks up +5%.
While this rally feels good, it really has not yet broken through any resistance levels or reversed the downtrend that has been in place. As such, I want to participate in it while it lasts, but I do not think we are entirely out of the woods.
long GOOG, AAPL, RIMM