Pullbacks Are Buyable In This Sector

  • October 8, 2004
  • Gary Kaltbaum


We are now starting to get the anticipated pullback I told you about.
But, I think
it more important to talk a bout what is going on in individual areas. I say this
because the markets continue to be in the nauseating trading range that started
in January of this year.

 

The DOW will continue to lag. Please keep in mind, the DOW is 30 megacap stocks.
With names like MRK, PFE, KO and other big names that are acting like death, I do
not expect much from the DOW.

 

HOUSING stocks have topped. I expect bounces but bounces are now sellable.

 

SEMICONDUCTORS may have hit a wall after the move off the lows. This would be
normal, but I am watching volume. If volume picks up on the downside, the short-term
party we have seen would be likely over. 

 

OILS have been leading but are very…very overextended. Pullbacks will happen.
Pullbacks are buyable. The same goes for most COMMODITIES. This includes STEEL, COPPER
and the rest of the METALS.

 

GOLD and SILVER look to be buyable as the DOLLAR looks to be breaking down.

 

DRUG STOCKS…well, they are on life support right now. I would sell any bounce
as they continue to be in a brutal bear market. Technically, I have been
telling all to sell big-cap DRUGS for a couple of years. I was laughed at. No
one is laughing any more.

 

I will be appearing on FOX NEWS CHANNEL’s “BULLS AND BEARS” this
Saturday at 10 am ET. We will be debating the debate. Don’t miss it and the rest
of FOX NEWS CHANNEL’s Business Block. 

Gary Kaltbaum