What The Nasdaq Action Tells Me
I am heading for Phoenix today where I hear it is
108 degrees…in the shade. Yippee!
My main point today is simple:
I believe the bounce/rally this market has had
since last Tuesday is at an inflection point. I say this because this rally is
now into the heart of resistance that has stalled the market since the
mid-January top. I say this because all of a sudden, the SEMIS started to gag
on Wednesday…and you know how important the SEMIS are to my work. I say this
because BROKERAGE stocks are still acting poorly. I say this because the last
time we were at these levels, there were many more NEW HIGHS and many more
stocks participating in any rally.
The good news is that there has been a pick-up in
NEW HIGHS…so there has been some names breaking out. I am hoping to see many
more before I can get really excited. The process of this happening would take
time as there are not enough bases to buy off of.
CONCLUSION:Â As I have said many times, this is
going to remain a very challenging environment. Even if the market continues to
rally, fewer and fewer stocks are leading. I still believe we are in the late
innings of this bull move but we will let the market decide. I would
especially be careful about owning the NASDAQ here as I do not like the recent
action. Combine that with major resistance just ahead and we may have the
makings for some near-term action to the downside.
I will be appearing on FOX NEWS CHANNEL’s CASHIN
IN on Saturday 1130 am EDT…that’s 8:30 am in Phoenix. You can watch the whole
business block from 10 AM-Noon EDT.
I finished reading Neil Cavuto’s book yesterday…entitled
“MORE THAN MONEY.” It is now in bookstores as well as can be bought on Amazon.
Let me say this: it is one of the most inspirational books I have read in a
very long time. It will be required reading for my children. I urge you to
read it for the many great life lessons it teaches.
Gary Kaltbaum