A great day in the market.  I saw nice breakouts in many leading stocks.  Some of the bears will talk about how light the volume was today.  When I see leading stocks and indices breakout, that is very positive action.  The major indices closed at 52 week highs as well.  Let’s look at the Russell 2000.

I love it when the small cap stocks lead the way.  This index broke out of a high level base to finish up 2% at a new 52 week high.

Here are the highlights of the other indices’ action from IBD.

The Nasdaq led with a 1.1% gain. The NYSE and S&P 500 added 0.8% while the Dow rose 0.4%. All indexes ended in the upper half of their trading ranges. Small caps were on a tear, driving the S&P 600 ahead 1.9%.

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Over the past couple of days, the market has not been able to hold on to gains made in the early part of the trading session.  Thursday continued this weak behavior.  Stocks moved up early in the session only to finish flat or negative for the day.  Here is some guidance from IBD.

But the important thing isn’t the why.  It’s the market’s action itself.

The market remains in a confirmed uptrend, but the indexes are showing suspicious behavior.  In four of the past 10 sessions, the market delivered distribution.  The indexes’ Accumulation/Distribution Ratings have also dropped.

Given that, investors should take a cautious stance. For stocks you are holding, make sure you have a defensive line in mind — in case the market comes under pressure or shifts to correction. For example, if your stock is up 10% or 20% from your buy point, you don’t want to hold until it cycles into a loss. Have an exit level in mind.

Here are some notes on individual stocks.

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It was a good week!

Those of you new to BGH may not be familiar with guru Davey C, but long-time readers know what it means when this sagacious investor makes a post. We never know when he is going to post, but once a year he will grace these pages with his Lock of the Year. When that happens it’s time, as Davey C says, “to back up the truck!”

While his commentary can be insightful, please remember that the views expressed by Davey C are the sole opinions of Davey C and not necessarily the views of BGH.

Enjoy!

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Here is a new video on the current status of the gold market by Adam Hewison.

Click here