Breakout…It’s A Start
I was not going to write today. BUT…I received numerous emails about
Wednesday’s near-term breakout of the major indices. Here are my thoughts.
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CORRECT! Let’s take a look.
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The DOW breaks above near-term resistance.
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The S&P 500 breaks above near-term resistance.
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The TRANSPORTS move to a yearly high. WOW!
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The RUSSELL 2000 move above near-term resistance.
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As I told you in my last report, the SEMIS moving out could be a harbinger of
better things to come. The SEMIS have always been a great forecaster for the
market.
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So…there are the facts…the reality. What does it mean? You don’t get
crazy. You stick to your discipline. For sure, more and more names set up when
the market gets healthier…and I am seeing more and more names.
The NEW HIGH
LIST is expanding. Take this opportunity to probe those names that break out
on high volume…and as usual during this whipsaw environment…close your
eyes, hold your nose and pray.
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A technician has to like what they are seeing. This technician needs to see
more and more and more of it. So far, so good.  Let’s hope the indices hold
this latest near-term breakout.
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On another note, the BOND MARKET is now cooperating. It seems the market has
already telegraphed big Al’s move next week.
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I will be interviewing Treasury Secretary John Snow on Friday. Tune into my
radio show live 5-7 pm EDT at www.garyk.com.
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Lastly, I will be appearing this Saturday at 1130 am est on FOX NEWS
CHANNEL’s “CASHIN IN.”
Gary Kaltbaum