The major market averages were up on higher volume as the NASDAQ's de facto resumption of its uptrend gained momentum. The S&P 500 also moved further above its 50-day moving average and now lies within 1.52% of its early August highs. Mega-cap stocks Nike (NKE), Visa (V), and Goldman Sachs (GS) all had mini-gaps higher at the open because they will be added to the Dow Jones Industrials Index. Leading stocks of all stripes continue to move higher, in some cases in swift fashion such as Netflix (NFLX), Yy (YY), and Soufun (SFUN). Leading sectors of the day included retail, semiconductor, and leisure. Most leading stocks, many of which were flashing buy signals in the form of pocket pivots or buyableg gap-ups several days before the NASDAQ moved to higher highs, are somewhat extended and some digestion of these gains might be expected. Investors might look to be opportunistic on pullbacks to logical areas of support wherever these might occur in leading stocks.
Precious metals were down as a result of tensions easing in Syria. Syria's leaders have agreed in principle to allow international oversight and control of their chemical weapons stocks and to become a signatory to the chemical weapons convention. With the Fed policy announcement looming next week, precious metals also might be signaling that the Fed will finally announced specific terms with respect to QE tapering.
Apple (AAPL) had a mini-gap-up yesterday at the open in anticipation of new product announcements, but by the close reversed course and closed down 2% This morning, in pre-market trade, AAPL is trading down 4% on a number of analyst downgrades. The lack of a killer app in its pipeline, flat sales, and lower earnings are major headwinds for the company that has to carry its $450 billion market cap. Perhaps gone are the days of 50% price appreciation which, if achieved, would add $225 billion to its market cap for a total of $675 billion, a dubious valuation at best.