NASDAQ CLOSES AT NEW 52-WEEK HIGH -- LEADERSHIP CONTINUES IN SMALL CAPS AND CHIP STOCKS -- TEXAS INSTRUMENTS AND JC PENNEY BREAKOUTS
MORE TECH AND SMALL CAP LEADERSHIP... Two of the strongest parts of the market today were technology and small caps. Both influences helped the Nasdaq market close at a new 52-week high. It also did so on rising volume. That's a good combination. Small and mid-cap market indexes also hit new highs. That's a good sign as well because it means that market breadth is improving. The strongest part of the technology remains in the semiconductor group. The Semiconductor Index hit another new high today. Other market indexes hitting new highs for the year were basic materials, cyclicals, and transportation. All are symptomatic of economic strength. Good economic news this morning pushed bond prices lower again, and the dollar higher. That caused some profit-taking in gold and gold shares.
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TEXAS INSTRUMENTS BREAKOUT... Texas Instruments was a standout performer in the chip group. Its daily chart shows the SOX leader breaking through its June high to resume its uptrend. It also did so on rising volume.
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JC PENNEY SOARS... Retail stocks have also been showing market leadership. Today's retail star was JCPenney, which jumped on massive volume. In so doing, the stock broke through its 200-day moving average and its summer highs. The weekly chart shows a stock just beginning to show some decent relative strength.
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CNBC INTERVIEW ON FRIDAY... I'm scheduled to do an interview on CNBC with Ted David tomorrow (Friday) and approximately 3:40 pm (NYT). Tune in if you can.
