Both S&P and NASDAQ had greater volume and much larger gains than 1-1.25 % so yes, follow through-days.
Personally, took a new position in NFLX and added to an already positive position in PLTR. Have, and will keep tight stops. A few other small positions, encouraging. But remember that half of FTD’s fail so caution advised. We are only a social comment away from a 5+% drop at anytime someone’s hemorrhoids flare.
Lakedog
4/23/25
IBD:
Despite two days of strong gains for the indexes, IBD’s recommended exposure stays at 0%-20%, mostly because of a lack of buy candidates at the moment.
One of my difficulties with IBD has always been that they work every angle to make a buck. I don’t really deny them that as it’s what they’re suppose to do as a company. But it get’s old having a zillion ads etc thrown at me all the time. Just a couple days ago, literally on the 21st, I got an ad email for their " Portfolio Exposure Level System".
This is NOT their Market School but uses a lot of the same perspective to come up with the exposure level. Don’t confuse them. Not saying one is better than the other, just different goals in expressing interpretation. Note, Market School Rules did not increase buying level either.
Despite a strong gap up and climb today, we had a very weak closure, dropping below the 21 sma and losing about half the gain. While VIX got below 30, it’s still elevated. I took a couple test spots, but watching closely. Interesting that for several days we’ve had some end-of-day buying. Not a ton, but enough to make me wonder about the big boys & girls.
Lakedog
Today, we closed above the 21dma on the S&P and Naz, but low of the day was just below it. Progress.
NASDAQ gapped up with low of 16744.97, close 17166.04 and 21 sma 16710.30
so low did clear 21 sma.
S&P 500 gapped up with low of 5371.96, close 5484.77 and 21 sma 5389.23.
NASDAQ has a B3 buy signal of low above 21, but SPX did not. Both had good gains and would have qualified for B2 buy signals of additional follow-thru days (within 25 days of rally) but had lower volume.
Lakedog
PS Steady retail purchasing until noon, flat then up with an increased tail.
Because this built on already stout progress during the week, and Friday’s low for the Nasdaq and S&P 500 held comfortably above the 21-day line, IBD is raising its recommended market exposure to the 40%-60% level.
S$P 500 made a Buy 3 on Friday.
Both NASDAQ and S&P had nice increase but failed again for Buy 2 because of low volume.
Two buy signals for each index. Futures initially looking down. At a tough zone for support and resistance, we’ll see.
Lakedog