NASDAQ confirms a new uptrend on big above average volume
Today’s action was precisely the action we have been waiting for as stocks exploded higher on big volume as leaders take charge. Futures were pointing to a higher open prior to economic reports being released. A slightly disappointing ADP employment report did dampen the mood a bit, but it was the big increase in ISM manufacturing figure. The market was expecting a reading of 53, but the index rose to 56.3 well above expected sending stocks much higher. Volume ran higher across the board for much of the day. Yesterday’s end of day volume was quite large and proved to be too much for the NYSE to overcome, but not the NASDAQ. The NASDAQ is the leading index and with its follow-through day today points to higher prices.
I have been pointing out the positive action in leading stocks, while not a guarantee the market will follow-through, but adds to the possibility of one occurring. It was important the market move and move quickly as we were testing last Friday’s lows and when you test a point too often it tends not to be support. Therefore, today’s move was a step in the right direction to find stocks about to make big moves.
Next on deck will be Friday’s job report and whether or not it will show a decrease in the unemployment rate and job creation. The market has been discounting disappointing economic reports as of late. Anything is possible, but at the moment the market is expecting non-farm payrolls to drop near 130,000 while private payrolls are expected to grow by 44,000. Many will be focusing on the private job creation as majority of jobs are created by the private sector. Again, the reaction to the numbers is MORE important than figuring out how it will act. At the moment, this market followed-through on above average volume with leading stocks powering the massive move.
Pay attention to your stocks as they will give you clues as to how the market will react. There aren’t any guarantees in the market, but clues can be found in the leading stocks. Just like leading stocks have been acting well for quite some time and finally the market has confirmed a new trend. Will this kick off a new multi-month move higher, perhaps but we should be more concerned with accumulating shares of the leading stocks. Do you have a plan?
We were prepared for a move like this and now we can begin operating in size in this market. If you aren’t prepared, or lost come join us and let us help you take advantage of all the market has to offer.
Top Current Holdings Up Today With Total Returns: LCUT 128%, JKS 100%, RDCM 42%, PWER 34%, NR 21%, RES 15%, AMRN 10%
Disclosure: Long: LCUT JKS RDCM PWER NR RES AMRN