Market Is Oversold, but Will It Bounce?
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.
I will be on Fox Business Network Tuesday and Thursday from 2-4 pm.
Would someone please get Alan Greenspan to shut the heck up? Does this man
even care about the repercussions of his loose lips? Someone give him a couple
of valiums. What an egomaniac!
For many moons, I have outlined those areas that were already in bear
markets. Many of them topped as far back as February.
For many moons, I have outlined how the market was becoming more narrow by
the week.
For many moons, I have outlined that this type of narrowing was not a good
sign.
For many moons, I have outlined those areas that were still working.
They ain’t working any more!
The leading OIL group now has many names topping out.
The leading COMMODITY groups are turning into dust.
The leading countries like CHINA, HONG KONG, INDIA and BRAZIL have now
topped.
The leading SHIPPERS group is being blasted.
GOLD and SILVER look like goners as the stocks are leading the metals to the
downside. This almost always is a precursor for the metals to follow.
And now…the leading TECH-types like AAPL, RIMM, BIDU, GOOG and many other
leaders are being distributed out of wide and loose patterns.
That leaves not much left leading this market.
The short-term support levels I outlined for you yesterday were already taken
out. We still may receive a holiday bounce…especially off of very oversold
conditions…but that will not change a market with seriously deteriorating
internals. I was thinking the market would at least hold into the new year…but
as of this second, market continues to be distributed. I do not believe January
will be kind.
I do make note that the worst areas like FINANCIALS and RETAIL are very
oversold and due to bounce…but that does not mean they have to. In bear
phases, surprises are mostly to the downside…and oversold can become much more
oversold.
Gary Kaltbaum