I Am Seeing Some Cracks. Here’s Where…
did not watch trading most of the day. I had the distinct privilege of
chaperoning my 8 year old on a field trip.
Anything can happen…but after a 15 day surf to
the upside, I am seeing some SPECIFIC things that you need to know.
First off…WMT, MIK, ANN, BBY, BBBY, MAY, CHS,
HOTT, FDO, KSS, DLTR, LOW, ANN…I don’t think I need to add…but a glance at
these RETAILER’s charts say a TOP has been put in.
Second…take a look at the TLT…or a proxy for
the BOND MARKET. It has topped.
Many have been worried that a falling dollar
would eventually force interest rates up. Food for thought. Higher rates could
affect INTEREST RATE SENSITIVE stocks. For starters, many HOUSING names seemed
to have topped on Monday. Watch rates closely here.
^next^
Third…take a look at INTC, ADI, MU, MXIM…HMMM!
A few SEMIS already acting suspicious. Just needed to mention all this.
While everyone is going gaga over GOOGLE and OSTK, I am now starting to see some
cracks.
I am not saying the end of the world is coming.
It is just easiest to isolate early weakness while the market is strong. With
major indices extended, with froth and speculation starting to pervade the
market, with just about everyone I hear saying December will be powerful, I
feel it important to get your feet back on the ground and make sure you deal
with the tape. There are still plenty of positives out there. There is still
plenty of leadership. It just feels like we are about ready for more than just a
one day correction at this time…and a few areas are now starting to act
suspect.
Gary Kaltbaum