You don’t hear this type of talk in bull markets
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Someone’s going to jail.
Both ATYT and HCA were bought out this morning. Anyone see how they
both traded last week? How does all this news leak beforehand? Has no one
learned a lesson about insider trading?
Near-term, I think we can get a bounce. Just remember, that is the trees. The
forest is the overall market…which has been a horror show. Why a bounce? The
same reason for the other bounces we have seen. The markets are already extended
to the downside…that’s for sure. But the other reason is that the RUSSELL 2000
(
RUT |
Quote |
Chart |
News |
PowerRating) is sitting right at support at 670…where it would be normal to
bounce. I could also say the same thing about the MIDCAP 400.
Lastly, it’s end of month. You already know the shenanigans that goes on into
the end of every month/quarter.
Also of note:
The OIL SERVICES INDEX
(
OIH |
Quote |
Chart |
News |
PowerRating) was the latest to do a bungee jump. It is at
significant support at $130…where it could also put up a fight. The same goes
for many COMMODITY names THAT HAVE BEEN WHACKED.
BONDS are now cooperating. I believe the BOND MARKET is technically ready to
break out of above resistance. I will let you know if that occurs. This would
not hurt the market.
I am “feeling” lots of bearishness out there. Certain pundits are actually
reaching for the DEPRESSION word. We haven’t even had a slowdown yet…and still
hearing this type of talk. I am also hearing the talk that the only way to make
money is to short stocks. You don’t hear that type of talk in bull markets.
Do not let this short-term talk sway you away from the big picture…and that is
the tape is a mess. I can’t begin to go over all the ugly…starting with
TECHNOLOGY/NASDAQ/NDX/SOX. Seeing a brutal bear market in those areas…with no
let-up in sight. I will also state that these areas are due to bounce…but
every bounce so far has been anemic and short in duration. Every drop has been a
meltdown.
Gary Kaltbaum