As I’ve Said Before, It’s Not The News
The market’s tone, the market’s feel
and the market’s advance/decline figures continue to improve on a daily basis.
Pullbacks and corrections continue to be controlled and rotational.
and the market’s advance/decline figures continue to improve on a daily basis.
Pullbacks and corrections continue to be controlled and rotational.
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For sure, the market is overbought on a near-term basis. But overbought or
not, keep an eye on the following resistance areas. (DOW 10,365…S&P
1131…NASDAQ 1920…NASDAQ 100 1436…SOX 399Â ) A move above these levels on
a closing basis will be nothing but positive and give the major  indices
another leg up.
not, keep an eye on the following resistance areas. (DOW 10,365…S&P
1131…NASDAQ 1920…NASDAQ 100 1436…SOX 399Â ) A move above these levels on
a closing basis will be nothing but positive and give the major  indices
another leg up.
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What hasn’t changed is what I started telling you in late January. The tape is
going to remain challenging as this market remains split. While the numbers
have improved, only about 45-50% of all stocks are in good technical shape. If
that does not improve, it will have longer-term implications…but let’s not
throw cold water on the better action we are seeing right now.
going to remain challenging as this market remains split. While the numbers
have improved, only about 45-50% of all stocks are in good technical shape. If
that does not improve, it will have longer-term implications…but let’s not
throw cold water on the better action we are seeing right now.
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Other thoughts:
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I continue to see bad news NOT being sold off. We started seeing that with
names like TXN and NSM as they rallied on poor earning’s outlooks. As I have
said a million times, it’s not the news, it’s how markets react to the
news…and as long as the reactions are positive, we can continue to probe.
names like TXN and NSM as they rallied on poor earning’s outlooks. As I have
said a million times, it’s not the news, it’s how markets react to the
news…and as long as the reactions are positive, we can continue to probe.
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OIL prices continue to stay in the mid $40s. OIL stocks continue to lead. In
fact, the NEW HIGH LIST was littered with OILS today.
fact, the NEW HIGH LIST was littered with OILS today.
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Keep a close watch on the SOX…which I previously mentioned. A move above 399
would be the first time in quite a while that the SOX has made a higher low.
would be the first time in quite a while that the SOX has made a higher low.
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I gather we will have a great idea of what the 4th quarter has in store in the
next few weeks. It’s earning’s season soon…and oh yeah….a little election
is just around the corner.
next few weeks. It’s earning’s season soon…and oh yeah….a little election
is just around the corner.
Gary Kaltbaum