It’s Off To The Races!
I can be very short and to the point.
The “market” continues to act perfectly. In fact — and to my and almost
everyone’s amazement — it has been “off to the races.” Advance/declines,up/down
volume and everything else under the sun cannot be acting any better. All one
has to do is look at some market proxies.
Take a look at the charts of the Russell 2000
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PowerRating), Nasdaq
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PowerRating) and any other market
proxy. The only negative I can say is that they are now stretched and in dire
need of a pullback. Of course, I have been saying that for a few weeks. Very
simply, every pullback has been bought up and every breakout has been strong.
Until things change…and as of this second, it hasn’t…ride it out. I suspect
a 1000 S&P
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PowerRating) could provide a wall…but I can’t say the wall won’t be broken down.
Overbought and extended does not do justice. Somewhere we are going to get a
pullback…probably close at hand. Until things change, buy the pullbacks…and
in the meantime, keep playing the new breakouts as most are following to the
upside.
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Until next time,
Gary Kaltbaum