Market Needs Help from Financials
Gary Kaltbaum is an investment advisor
with over 18 years experience, and a Fox News Channel Business Contributor. Gary
is the author of
The Investors Edge. Mr. Kaltbaum is
also the host of the nationally syndicated radio show "Investors Edge" on over
50 radio stations. Gary is also editor and publisher of "Gary Kaltbaum’s
Trendwatch"…a weekly and monthly technical analysis research report for the
institutional investor. If you would like a free trial to Gary’s Daily Market
Alerts
click here
or call 888.484.8220 ext. 1.
In my last report on March 29th, I penned these
words:
“I suspect we are going to see markets head
towards recent lows. At the very least, you should be very wary of the action
and stay on the defensive unless we start to see accumulation as well as a
plethora of stocks breaking out of bases…which they are not many of.”
Hey…I also had the Germans at Pearl Harbor. I
can forgive myself because at the time, the market had everything going against
it…distribution after only 5 days from the confirmed rally…FINANCIALS
stinking up the joint…lower tops in WORLD MARKETS…TRANSPORTS that went
straight up and straight down.
But the market Gods are just not ready to roll
over in spite of the action off the top…and the good news is that over the
past week, the market continued to repair the damage with a strong day on
Tuesday. There are a few subtle things I do like. I like that:
Leadership is reasserting itself. Names like RIMM,
AAPL, CROX, AVT, GME, LEAP and others are moving out…and the NEW HIGH LIST is
expanding.
I like that after that distribution day, I have
seen and felt no selling.
I like that major indices have moved BACK above
their respective 50 day averages so soon after a trouncing.
I like that my “unofficial Kaltbaum list of good
versus bad stocks” is starting to be skewed towards the good list. This has not
happened in a while.
Many are already saying last week’s better action
had all to do with ligh volume pre-holiday trading. To me, it does not matter
when something occurs…just that something does occur. There is no law that
states markets can’t go down before a holiday.
That all said, do not for a second think we are
out of the woods and that we are off to the races. FINANCIALS are still acting
poorly…and I promise you that they will need to lift for the market to really
get going. This is not out of the question but want to see the evidence. I also
want to make note there are still a good many stocks in poor technical shape.
This market is far past the point where you can throw a dart at anything. Right
now, I am using the 50 day average as support with old highs as resistance. We
are going to find out soon which way the market wants to go…and then we get to
deal with earning’s season. Can’t wait.
Gary Kaltbaum