Was That A Pullback? I Don’t Think So
There is a good chance
that the recent NASDAQ outperformance is over. Thursday’s action was
gross. I was taken aback by how easily things were undone…especially the
SEMIS. Regardless of what you hear, we need to give respect to yesterday’s
action. I heard nobody being worried. In my report yesterday, I told you the
SEMIS would probably pull back. I know pullbacks. Pullbacks are a friend of
mine. This was no pullback..
How do I know this was no ordinary pullback?
SANM, HPQ, NVDA, MCRL, ESST, CRAY, ISIL, DCLK
VRTS, CDWC, AVT, SKIL, INFA, MNST, DOX, EXAR
MICC, CRUS, IBM, LEXR, ONNN, PSFT, SEBL ,XLNX,
VIP
MBT, UTEK, BEAS,CY, LSI, RFMD, FCS
SDS, JBL, LSCC, ELX, IR, SMTC, AMKR
When you have a moment, take a gander at some of
these charts that have broke down badly. This would not happen in a normal
pullback. These are all TECH names…some very important. You can also add INTC
to the list of names that have broke below near-term support.Â
I excluded the many RETAIL names that are acting
horrid. I don’t know how a market goes higher without RETAIL and the SEMIS
working.Â
This market remains as tough as it gets. Just
when you think there is light at the end of the tunnel, it disappoints and
dumps. The nauseating trading range continues.
My staff and I would like to wish all a happy and
safe July 4th weekend.
Gary Kaltbaum