- Volume is back
- Large Cap Growth leading the way
- Housing situation continues to deteriorate
Last week the major indexes exploded to the upside on higher volume. The DJI and S&P indices were up 3%, but the real story was the 6% increase in Investors Business Daily’s (IBD) top 100 leading stocks index. In that index, 61 of the 100 stocks had weekly increases in both price and volume. The four-day pull back since last Wednesdays high has been on lighter volume each day (bull market trading). I’m betting that by the next time I post we will be at new highs for the S&P 500 and DJIA indexes. The NDX hit a new high Tuesday.
A quick glance at IBD’s mutual fund page shows large cap growth stocks have been the leading stock class since mid June. This group has underperformed since 2000 and is due to cycle back into a leadership position.
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Posted by Michael Chapman at 12:00 PM PDT
