Bulls took command of the stock market Wednesday with steel, building, banking and metal stocks leading the charge.
The Nasdaq jumped 1.3%, while the S&P 500 and the Dow Jones industrial average leapt 1.4% and 1.5% respectively. Small caps led as the Russell 2000 thrust 2% higher. Volume in the stock market today was about 18% higher on the NYSE and 4% higher on the Nasdaq, according to preliminary data.
President Trump's speech Tuesday night initially had some stock analysts muttering over the lack of details on tax cuts, but the stock market itself was more generous. The Nasdaq and S&P 500 gapped up at the open and then kept climbing.
The action of the market itself is a much better guide to the market than the opinions of analysts.
Amid IBD's 197 industry groups, winners led losers by a 14-to-1 ratio.
The winner's circle for the day included some heretofore middle of the pack groups.
Cement stocks, which also are middle of the pack, rebounded. Eagle Materials (EXP) popped almost 3%. The stock recently retook its 103.26 buy point and is still in the 5% buy zone. Vulcan Materials (VMC) gapped up 3.4% but couldn't retake its 50-day line. Vulcan could be working on a double-bottom pattern but it has work to do on the right side.
The highly rated steel and steel alloy groups provided more predictable strength. Steel Dynamics (STLD) rose 3.5% as it builds the right side of a base. United States Steel (X) retook a 39.24 buy point. Both are third stage bases, which are more prone to fail than first- or second-stage breakouts.
Among the steel alloys, Carpenter Technology (CRS) tried but failed to retake a 42.37 buy point. Carpenter's consolidation is first stage.
Bank stocks appeared re-energized. JPMorgan Chase (JPM) gapped up to a 3.5% gain in brisk volume. The stock made a new high. Gains of 2% to 3% were common within the money-center group.
The super regionals did even better. Gains were in the 3% to 4% neighborhood. Comerica (CMA) advanced 5% in above-average volume.
RELATED:
