What This Bounce Needs…
Despite the fact that the NASDAQ is only up 14
points since my Thursday morning report, I believe things have changed. I now
believe the NASDAQ will be more in sync with the rest of the market instead of
lagging badly. I say this because of the strong action in the SEMIS on Friday.
I still believe we will see the NASDAQ and the NDX lag but when the SEMIS get
in gear, I pay respect. The one major fly in the ointment for the NASDAQ as a
whole is that lack of volume on this bounce. Markets cannot continue to go up
without a surge in volume.Â
What I do love is the massive amounts of NEW HIGHS
on the NYSE. Even when the market was correcting, NEW HIGHS on the NYSE were
expanding…a positive divergence.
I also love the fact that Europe is hitting new
highs on a daily basis. I have not discussed this much, but I do believe the
London market to be a decent indicator for our markets.
I am much more emboldened here. It will be
interesting to see whether all major indices can get on a roll together. I
suspect we will know soon enough. Continue to exploit the high volume
breakouts on the NYSE in the groups we talked about last week…but remember,
volume will need to kick in for this bounce to turn into something much more
worthwhile.
Gary Kaltbaum