The market got off to a good start today and closed near the highs. Oil stocks, which had struggled recently rebounded sharply.
The S&P Small-cap 400, Russell 2000, NASDAQ and S&P Small-cap 600 are all above their respective 200-day moving averages acting very well. Especially the Mid cap 400. The Dow Jones Industrial Average and S&P 500 are lagging. This could mean that if the market continues to improve, you will see small company stocks take the lead which is what you want in a healthy market.
Balchem (BCPC) broke out to a new high today on a 79% increase in trading volume. Solera Holdings (SLH) rebounded after selling off on news that they were going to be selling more shares. Gafisa (GFA) snapped back today as well. The stock had declined the previous three trading sessions. LKQ Corporation (LKQX) fell for the fourth straight day. The stock has struggled since GM announced they were closing four truck plants. The stock is still above it's longer term trend-line however and I plan on keeping it for now.
Trading volume was good today and so were the markets internals. I don't think we are going to head straight back up to the old highs (at least the Dow and S&P 500) probably won't but I'm not ruling out the possibility that the indexes comprised of small and medium sized market cap companies won't continue to outperform.
Arthur Daret
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