Stock Market Commentary for Tuesday, July 12, 2005

There was some chatter about reasons for the rally on Monday, but since nothing really rang very true and since trading volume was somewhat anemic, I would say that it was more of a technical move than based on economic and business fundamentals.  NASDAQ closed up a sharp 22.55 points, to a new high (2,135.43) for the Spring (and now Summer) up-leg.

Now that NASDAQ has closed well above the psychological 2,100 level and is within striking distance of the early January peak, traders and speculators may stick with a bullish sentiment until momentum runs out.

NASDAQ trading volume was moderate (1.80 billion shares), and breadth was strongly positive, with 2.32 gainers for each loser.  This would have been a strong rally, but trading volume was still a little too anemic.  This has the feeling of some short-term speculators making a "run" with the market.

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-- Jack Krupansky