Technology and Small Capitalization stocks lead the way as volume jumps across the board. Volume increased across the board as NASDAQ volume jumped 14% over Friday’s level as well as its own 50 day moving average. Over at the New York Stock Exchange volume was up over 20% but failed to eclipse its elusive 50 day volume average. More importantly leaders continue on their tear with institutions gobbling up as much as they can. Volume in leaders continues to expand as many institutions are searching for growth. Today’s move was another vote of confidence for the viability of this new uptrend and why it has plenty of legs to go.
Today’s move pushed the S&P 500, NASDAQ, and Russell 2000 above their respective 200 day moving average another big hurdle. Many believed the 200 day moving average would prove too much for the indexes and we’d fail. The market had other ideas with volume surging as we pushed through the important moving average. For those who thought we were overbought were burned today and why we pay attention to our stocks.
There was a bit of good news out for the market to chew on and that was numbers out of the monthly budget report. The report showed the deficit to be $5 billion less than expected. Initial reaction from the market was not positive as sellers tried to knock down the market, but the big boys had other ideas pushing stocks higher for the rest of the afternoon.
A big move by MSFT helped the NASDAQ with the stock moving better than 5% to finish at 25.11 as the stock pushed above its 50dma. While MSFT is a laggard, it makes up roughly 6% of the NASDAQ so its movement has a profound effect on the market. The move came on the back of news the company was going to float a debt offering to pay dividends as well as buy back some stock. While we aren’t high on the stock it is always prudent to watch how the stock moves.
Two industries also helped out today’s move and both are important to a sustainable move. Semiconductors as well as Financial stocks helped today’s move. Without these industries moving higher it would be terribly difficult for any rally to be sustainable. Financials were given a boost after institutions bought up shares as Basel three appears not to be detrimental. All in all, things continue to look up for this market.
A great day for the market, remember to keep an eye on your stocks. Trade what you see and not what you think! Cut your losses too.
Top Current Holdings Up Today With Total Returns: LCUT 139%, JKS 109%, PWER 44%, RES 34%, NR 25%, RDWR 21%, MIPS 21%, LGL 21%, SPRD 18%, MMYT 17%
Disclosure: Long: LCUT JKS PWER RES NR RDWR MIPS LGL SPRD MMYT