Weeks of Gains Gone in One Day
Gary Kaltbaum is an investment advisor
with over 18 years experience, and a Fox News Channel Business Contributor. Gary
is the author of
The Investors Edge. Mr. Kaltbaum is
also the host of the nationally syndicated radio show “Investors Edge” on over
50 radio stations. Gary is also editor and publisher of “Gary Kaltbaum’s
Trendwatch”…a weekly and monthly technical analysis research report for the
institutional investor. If you would like a free trial to Gary’s Daily Market
Alerts
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This is what was said in our last report.
“So sentiment is now getting too bullish but I must say that
is understandable given the persistent move. Just make note that eventually,
markets will come back to their norms…and normally, for every action, there is
an equal and opposite reaction. We have gone up with nary a correction which
means there is not a lot of great support if sellers do finally get the upper
hand. Stay on your toes!”
The problem with that paragraph is that I could have wrote it
every day for the past 6 weeks. But…the job is to deal with today.
Technically, looking at the major indices, it is not thrilling
that the market gave back a couple of weeks of gains…in one day.
Technically, it is not thrilling that small-cap and mid-cap
indices gave back all of their recent breakout…in one day. Technically, it
feels like the market hit the wall here…and at the very least, will spend some
time doing nothing…but odds favor more testing the downside.
It is not thrilling that Financials like NTRS, STT, WB, WFC,
C, KEY, WM and quite a few others look like strong tops are in place. Even
(
BAC |
Quote |
Chart |
News |
PowerRating)
is now rolling over.
It is not thrilling that Brokers were slammed and on volume.
Lehman
(
LEH |
Quote |
Chart |
News |
PowerRating) has already broken the 50 day average.
It is not thrilling that the leading stocks in the
market…for a lack of a better word…were obliterated on the day. Strong
distribution in the market combined with leading stocks being slammed is not a
recipe for higher prices.
We wrote to you today to let you know we believe days like
Monday can and will change the complexion of the market…so be on your guard.
At the very least, we would be thinking a little more defensive here…as we
stated…there is literally no support underneath if selling persists. The
emotions fear and greed are closer than you think. We know. We deal with them
every day.
Gary Kaltbaum