An Excellent Day Of Bullish Action Gets Hit In The Last Hour Ahead Of AAPL Earnings; Ours Long Hold Up Like There Was No Selloff Which Could Indicate Leading Stocks Are Ready To Take Over

April 22, 2009

By Market Speculator

The last 30 minutes told an interesting story as much of the day stocks were enjoying gains on higher volume. Growth stocks were leading the way along with Small and Mid-Cap stocks. However, sellers began to flood the market and knock down AAPL during the last 30 minutes of the session. The company was set to release earnings after the bell and traders got nervous about a “miss.” This sent a shockwave throughout the market sending most stocks near their session lows. Not all was lost, majority of leading stocks held onto their gains suggesting growth investors are willing to hold onto winning stocks.

NYSE indexes were slapped with a distribution day, but the NASDAQ and others escaped with gains. It is clear the Small/Mid-Caps as well as the NASDAQ are the leaders of this market. Even on a nasty sell off it was encouraging to see these indexes finish off in positive territory. In addition to these major indexes the IBD indexes held up well. Both the IBD 100 and IBD 85-85 were able to hold onto their gains and finish with higher volume. The IBD 100 has been in a nice consolidation pattern for the month of April, it will be nice if it can clear this consolidation’s high on strong volume.

A couple of leading stocks took a hit, one of them being MYGN. We had some members get out at the close on Tuesday and most out by Wednesday morning. The nasty price action is suggesting that the stock clearly is heading for its 200dma closing the gap created on 2/3/2009. All is not lost, other leading stocks especially from China are showing signs they are ready to lead. We’ll keep an on these leaders as we are holding onto them.

Leadership is important and we will continue to hold onto the highest quality stocks.

Market Speculator

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