This Sector Is A Horror Show

  • July 8, 2004
  • Gary Kaltbaum
What a mess!
That’s the best way to describe this nauseating
tape. Nothing good has happened since Monday and Thursday’s opening does not
look to be promising with a few more important names gapping down on earnings.

 

Everyone is scratching their heads as to why the
ugliness is occurring…especially in TECHLAND. Look no further than these
names…FILE, JDAS, NITE, SCUR, ASCL, NTPA, SMTL, CNXT, KVHI, MUSE, EMBT, LSCC,
MAMA, VRTS, EXAR, AMKR, MERX, ELX, CAH, NTES…and for Thursday, YHOO, SEBL
and several others are gapping down on numbers.

 

Continue to stay defensive here as the market is
on the defense. Keep in mind, it is not just TECH that is the problem. INTERNETS
are now blowing up and the all-important BROKERS are a horror show. Have you
seen the charts of GS, MER, LEH?

 

 

The only thing the market has going for it right
now is that I expect a little panic on YHOO numbers so maybe we can get one of
those opening selloffs that cleans everyone out. Keep in mind, even if that
happens, I would continue to play things light.

 

On the positive side — and yes, there are some
positives — I believe GOLD/SILVER stocks are about to start a leg up as money
flows are now heading into that area. You can also add other COMMODITY plays
like COPPER, STEEL and COAL to that list that looks higher. While on
commodities, OIL STOCKS also continue to shine. OIL prices, after a nice
dumping, have now rebounded into the $40 area and seem to be holding.

 

All in all…and for the umpteenth time, I expect
this tape to remain as challenging as ever…and we just started earning’s
season.

Gary Kaltbaum

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