The Breakouts Are A Good Sign. But Here’s The Fly In The Ointment

  • August 26, 2004
  • Gary Kaltbaum
I am traveling today so I will
be brief…but as usual, blunt.

 

I told you the market was going to bounce…and
that’s exactly what we are getting. I must admit that I did not expect a “V”
shaped bounce, but you never know what you are going to get.

 

I want to repeat a couple of things I have said
recently.

 

Keep probing. If the limited amount of breakouts
stick, it is a sign that the market wants to stick. If this is the start of
something big, more and more names will show up on a daily basis. So far, not
a lot, but we’ll take what we can get.

 

The fly in the ointment remains volume. Volume
continues to be a joke on this move up. I am just not seeing the conviction
one would want to see to tell us this move has staying power. BUT…we will
just continue to play it day by day and not get ahead of ourselves.

 

The market is now in the meat of resistance. I
would suspect it normal for the market to pause into this resistance before,
hopefully, attempting to move higher. I would continue to go slow until
massive volume shows up.

 

I will be appearing on Fox News Channel’s “Bulls
and Bears” at 10 AM ET this Saturday. The whole business block can be watched
from 10 AM ET to noon.

Gary Kaltbaum