The Nasdaq index rose 0.6% for the second rising day in a row and also had the advantage of supportive higher volume (although it was just average volume.)
But the other major indexes turned in disappointingmoves on Tuesday: The S&P500 index was flat and the DJIA was down half a point.
Investors.com reported that consumer prices rose 0.5% in January (an annualized 12+% rate.) Yikes!
Tuesday’s Big Picture (from Investors.com)suggests a “stock market exposure between 60% and 80% still makes sense.” And I remind investors to watch for stocks with top ratings breaking out of strong bases.
The three major indexes I follow in this newsletter ended mixed on Tuesday with relatively small moves – an accumulation day, a distribution day and a flat day.
Since I focus on the Nasdaq (see chart above), the last 2 days make me smile as they rose to the top of the channel.
Refer to the MARKET ACTION table below as you read the next section.
The last 8 days were troublesome to me – 5 of those days were down days. Some of the sting of that comment was reduced when I realized,that half of the drop has been recovered in the last 2 days.
I have highlighted the price changes ofthe last 7 days on the MARKET ACTION table below with a heavy box around the Prices.
t would be easy to see the 5 down days (in orange and red) and wonder if the market is in a downtrend. >>>>But to see the full picture, please look at the price and volume. of the 5 down days. Onlyone of those down days had higher volume making February 9 a distribution day. All the rest has lower volume (denying power to those down days.)
Monday had a nice 1.5% rise but lower volume sent a mixed message.
Tuesday’s additional 0.6% rise with higher volume showed upward strength!
On the MARKET FACTORS table below,the only red is at the bottom – showing how far the major indexes ARE STILLBELOW THEIR end of 2021 highs.
On the ACCUMULATION/DISTRIBUTION table below, notice the percent of stocks that are rising with higher volume (under Accumulation)versus the percent of stocks that are falling with higher volume (under distribution) is almost FLAT over that last 5 weeks.
Stay tuned! (More below the following comment about www.investors.com)
>>>>> BOTTOM LINE: This market continues to rise, showing strength – I hope you are “riding the rise”and grinning as much as I am!
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Whether you are new to options or experienced, please send a brief comment about the new OPTIONS app if you have tried it out.
On the MARKET FACTORS table below,the only red is at the bottom – showing how far the major indexes ARE STILL BELOW THEIR end of 2021 highs.