A Few Sector Changes You Should Know About
Nothing I have seen in
the past few days changes my thoughts about the market. The tape
is gross…and I am being nice.
the past few days changes my thoughts about the market. The tape
is gross…and I am being nice.
I have a few sector changes you need to
know about but first, we must take a look at the charts of the major indices
because…and listen carefully…THEY ARE TRACING OUT INVERTED CUP
AND HANDLES. Do not ignore! Let’s take a look at the DOW, S&P
500,NASDAQ and NASDAQ 100. A break below recent lows and the pattern is
completed. If those areas are breached on the downside, what has been
bearish action will only become worse. I will also turn long-term bearish at
that point.
saying the market is going to rally in a big way because it is oversold. As
of this second, oversold conditions have been worked off with anemic
bounces…sometimes intraday bounces. You must remember, in bear phases,
oversold conditions are much different than in bull phases. In bull phases,
markets pull back, get oversold and blast back to new highs. In bear phases,
markets bounce just to work off the oversold conditions and then lead to
lower prices.
know about but first, we must take a look at the charts of the major indices
because…and listen carefully…THEY ARE TRACING OUT INVERTED CUP
AND HANDLES. Do not ignore! Let’s take a look at the DOW, S&P
500,NASDAQ and NASDAQ 100. A break below recent lows and the pattern is
completed. If those areas are breached on the downside, what has been
bearish action will only become worse. I will also turn long-term bearish at
that point.
^next^
saying the market is going to rally in a big way because it is oversold. As
of this second, oversold conditions have been worked off with anemic
bounces…sometimes intraday bounces. You must remember, in bear phases,
oversold conditions are much different than in bull phases. In bull phases,
markets pull back, get oversold and blast back to new highs. In bear phases,
markets bounce just to work off the oversold conditions and then lead to
lower prices.
As far as groups go, two important changes.
I believe OILS topped yesterday for the
near-term. I am not saying you need to sell. I am saying you should
definitely hold off on any buying. These stocks have become loved and over
owned…and many are very extended.
near-term. I am not saying you need to sell. I am saying you should
definitely hold off on any buying. These stocks have become loved and over
owned…and many are very extended.
I believe the SEMIS are starting to at least
attempt to outperform. I say this because I am seeing an inability to go any
lower for this second. Understand, this is only an out performance in an
overall bear market for the SEMIS.
attempt to outperform. I say this because I am seeing an inability to go any
lower for this second. Understand, this is only an out performance in an
overall bear market for the SEMIS.
Continue to treat this market with the utmost
respect. Like the year 2000, we have nailed this topping process for you.
Only now am I seeing others on Wall Street figuring out what is going on. A
break of the DOW 9852 and S&P 1076 will make things that much worse. The
market needs a vital goal-line stand…and very soon.
respect. Like the year 2000, we have nailed this topping process for you.
Only now am I seeing others on Wall Street figuring out what is going on. A
break of the DOW 9852 and S&P 1076 will make things that much worse. The
market needs a vital goal-line stand…and very soon.
Tomorrow, I am putting out a report debunking
the myth that the market has to go higher when the economy is strong. I am
writing about this because every bull on Wall Street is out there claiming
the market shouldn’t be going down because the economy is in good shape.
Well, they are right on one count. The economy remains strong. On the other
count, I have issues. No opinions…just facts. Stay tuned!
Gary Kaltbaum
the myth that the market has to go higher when the economy is strong. I am
writing about this because every bull on Wall Street is out there claiming
the market shouldn’t be going down because the economy is in good shape.
Well, they are right on one count. The economy remains strong. On the other
count, I have issues. No opinions…just facts. Stay tuned!
Gary Kaltbaum