Market Alert - Last Hour

We have kept quiet thus far in contrast to the President as Tweeter in Chief and cheerleader. Holding moves have been an issue for the indices, but they are trying to pull that off even with a bit of late fade.

As for the President, today 3 new EO's were signed designed to stop crime, 'crush' drug cartels, and 'stop cop-killers.' Okay, crime is solved, now on to economics? Healthcare?

What really shot stocks higher after the upside open, or at least helped the fledgling Thursday rally really get going, was a statement to the airline CEO's that he will announce "something phenomenal on taxes in the next 2-3 weeks." Phenomenal? Better be a flat tax at 11% and a 0% corporate tax rate to qualify for that term. Somehow I just doubt that.

SP500 13.77, 0.60%
NASDAQ 33.98, 0.60%
DJ30 126.11, 0.63%
SP400 0.87%
RUTX 1.43%
SOX -0.65%

Clearly money is moving into the market with some fund buys of stocks across the board: look at the even gains on the large cap indices. SOX is lagging because it has been leading and managers are buying some stocks other than chips.

New highs for SP500, DJ30, SP400, and of course, NASDAQ. SOX is not participating today while RUTX is up but no new highs for it.

A/D: 2:1 NYSE, 2.5:1 NASDAQ. Definitely better after a negative showing on an upside day for NASDAQ Wednesday, but still not blowout.

We are looking at RS, QIWI, SWKS as new entries. SPY is fading the past 25 minutes; will see how the moves hold up though they look solid. Even QLYS, gapping lower on earnings, is posting a nice comeback.

Last night I said I would not be surprised at all if the NYSE indices broke to new highs. Indeed, I noted they likely would. So, we let positions work and will look at entering some of those mentioned if they continue to hold.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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