Small cap stocks jump as the Russell 2000 leaps more than 1% as volume jumps across the board. The NASDAQ gained 76bps on volume nearly 14% higher than yesterday’s level led by DELL stock after better than expected earnings. Better than expected housing numbers and tame PPI figures helped get the market off on the right foot as the market waited on the release of the FOMC meeting minutes. There wasn’t much fanfare after the release of the minutes, the market was able to hold its ground and close near the upper range of the day. Today’s action did help calm down yesterday’s distribution day, but the number of distribution days remains elevated. Not a bad way for the market to follow up a distribution day.
Market leaders continue to digest their recent gains, but AAPL stock continues to hit new highs. Hitting new highs on lighter than normal volume would be a concern. However, AAPL hit a new high today in above average volume showing instiutions were willing to step up and accumulate the stock. There isn’t much to complain about the stock here and it is precisely the kind of action we want to see out of our leaders.
In a surprise move, RIMM stock has made a comeback on excellent volume. The stock has come off its lows from the summer in excellent action. In addition, DELL stock has broken out from a long consolidation area. Do not be fooled, it will be a long haul higher as it has tremendous overhead resistance to keep the stock from rallying hard. Another past leader ISRG stock has tried to turn things around here as well. When you have a bull market like we do beaten up stocks will find support. We look for stocks to make big runs, not just ones moving 20%, but 100% or more.
Surprise, surprise the NASDAQ is only 1.25% off its 2007 high and it comes as a big surprise to many! We can thank the Federal Reserve for pumping trillions of untold dollars back into the system to keep it afloat. There is a strong correlation with money creation and stock market returns. How did you perform? Here is how Big Wave Trading performed!
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