As Long As I Keep Finding Charts Like These, All Is Well…

  • January 20, 2004
  • Gary Kaltbaum

Before
I get into the stock market,
I just wanted to point out that I do believe the dollar has put in a near-term
low. The dump in Gold and other commodities forecasted
this, as well as an article written in the Journal last week. Amazingly,
it was entitled…”How To Play The Lower Dollar.” Imagine that…an
article like that AFTER the move.

Back to the market…I can talk from now to next week about the market, but
the only thing that matters to me is the number of stocks setting up to break
out, as well as breakouts themselves. Well, I am seeing a ton of them right
now. If there is any one indicator for a strong market…it is how many names
are acting well. Here are just a few important big-caps that just broke out.


image src=”https://tradingmarkets.com/media/2004/Kaltbaum/gk012004-01.gif” width=”380″ height=”325″ />


(
GE |
Quote |
Chart |
News |
PowerRating)…perfect high-volume
move.


image src=”https://tradingmarkets.com/media/2004/Kaltbaum/gk012004-02.gif” width=”383″ height=”325″ />


(
NOK |
Quote |
Chart |
News |
PowerRating) gaps out of a
trading range.


image src=”https://tradingmarkets.com/media/2004/Kaltbaum/gk012004-03.gif” width=”382″ height=”328″ />


(
IBM |
Quote |
Chart |
News |
PowerRating) gaps also out
of range.

I show these first because
the bigger names will have a lot of influence on the indices.

^next^

As I said last week, the TELCOS were poised for higher prices. MAN…did they
smoke over the past few days…as well as the FIBEROPTIC stocks…which went
nuts.


image src=”https://tradingmarkets.com/media/2004/Kaltbaum/gk012004-04.gif” width=”380″ height=”325″ />


image src=”https://tradingmarkets.com/media/2004/Kaltbaum/gk012004-05.gif” width=”380″ height=”320″ />


image src=”https://tradingmarkets.com/media/2004/Kaltbaum/gk012004-06.gif” width=”382″ height=”323″ />


image src=”https://tradingmarkets.com/media/2004/Kaltbaum/gk012004-07.gif” width=”381″ height=”324″ />


image src=”https://tradingmarkets.com/media/2004/Kaltbaum/gk012004-08.gif” width=”377″ height=”323″ />


image src=”https://tradingmarkets.com/media/2004/Kaltbaum/gk012004-09.gif” width=”383″ height=”321″ />

As you can see, these stocks are under $10, but have great charts. Many are
saying this is a sign of a speculative blow-off. Maybe…maybe not. I try not
to go further than today…and many of these same people have been calling for
a top since 1500 on the Nasdaq. Don’t think it is just these names. There are
plenty of others. As long as I keep finding charts like this, all is well.

Gary Kaltbaum