Overnight, the ECB left rates unchanged, which was expected and made no mention of new initiatives. The Labor Department reported that initial claims for unemployment insurance for the week ending November 27 rose by 26,000 to 436K. The week’s total was 13K above the Reuters consensus for a reading of 423K. Continuing Claims for unemployment for the week ending November 20 were above consensus at 4.27M vs. expectations for 4.203M and last week’s revised (higher) 4.271M. Futures were pointing higher as a result of the overnight economic data.
Technically there was no opening gap but the index surged higher several point in the opening minutes and carried through with nary a pause bringing the index up ten points by shortly after 10:00 am. The SPX then proceeded to drift higher throughout the day and close on the highs. It was another fun day for the bulls and not so fun for the bears.
For the SPX Index there were 428 Advancers/60 Decliners. On the NYSE 3,122 issues were traded with 2,151 advancing issues and 893 retreating issues, a ratio of 2.41 to one advancing. There were 279 new highs and 10 new lows. The five day moving average of New Highs is 123 while the five day moving average of New Lows is 17 and the ten day moving average of Net Advancing is 327. The Net Advancing data indicates a bullish trend.
Advancing volume was higher at a ratio of 5.65 to one. The closing TRIN was 0.43 and the final tick was 731. The NYSE Composite Index gained 1.43% today while the SPX gained 1.27%.
For the NYSE, relative to the previous 30 session average, volume was 8.47% above the average. Of the last 15 sessions 6 sessions ended with volume greater than the previous rolling 30 day average volume. Of the last 30 sessions, 19 sessions ended on a positive tick, 6 of last 10. For the SPX, the day's volume was 102.7% of the average daily volume for the last year. Volume was 128.2% of the last 10 day average and 108.5% of the previous day’s volume.
Another day of incredible breadth as New Highs continue to explode upward. Advancing volume more than doubled up on the advancing issues and the broad NYSE Composite Index outperformed the SPX. Back-to-back sessions with this type of breadth will most often lead to higher indices 30 days later.
Total tick for the day was 111,000 and the average tick for the day was 72. There were 32 ticks greater than 600 and 2 ticks more extreme than -600. There were no ticks greater than 1000 and no ticks more extreme than -1000.
Relative volume surged at today’s open but fell off throughout the day. The nightly breadth indicators were more bullish than we have seen recently but the advance/decline lines raise some questions and the McClellan Summation index has plenty of room for improvement.
Basic materials, energy, financials (especially) , Healthcare, consumer discretionary and utilities were strong today. Metals had a sell-off (off cliff like around noon, not sure what caused that. The DXY sold off yesterday and is down a tad this morning. See SLV, gold looked the same, daily and weekly charts look strong.
Waiting on non-farm pay roll numbers this am, SPX futures are up .4% so far, gold is off a bit. But as I had mentioned on Wed, we rally till early next week should take us to 1225-1230 and then start the next move down 1175 to 1165 first targets.
I have made no changes in my portfolio. Up 16% in 8 trading days on RES but it looks too good to sell. I'm getting greedy now. I will take 25% off the table at 1225.
Long SLV, GDXJ, GLD, RES, URZ, URA, UEC, TBT, RES, IRE, AIB.
Watchlist: CRUS, BWA
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