Morning Report – February 14th, 2014

The NASDAQ Composite is near breakout stage, the NASDAQ 100 has broken past resistance along with the Dow Jones Utilities index, but the rest of the major market indexes are lagging. The SOX is also out to a new high, but since it only contains 30 stocks in a narrow sector, and is price weighted like the DJI, it doesn’t give us a picture of broad market strength. Personally, I view the broader markets as indexes which contain a minimum of 100 stocks, but the SOX, DJT, and DJU certainly give us a great snapshot of sector strength.  Because the DJI 30 stocks is made up of 24 industries, it is more diverse, but is still narrow. Yesterday was primarily a rally day for the small cap stocks, the SOX and the Utilities, but money also flowed into the big tech stocks which dominate the market at the moment. Read Full Report