Despite All The Negatives, Look At What’s Happening

  • August 21, 2003
  • Gary Kaltbaum

CISCO’s poor
action couldn’t do it. The worst blackout in history couldn’t do
it. Bombings at the U.N. embassy in Iraq as well as in Israel couldn’t do it.
HEWLETT PACKARD’s blow-up couldn’t do it. Simply put, in spite of all these
negatives that could have derailed the market, the bulls continue with the
upper hand.

Other potential negatives… The VIX is now below 20…but I must tell you…I
am so sick about hearing about the VIX. It has been low for the past 17 weeks.
Maybe one day it will have a profound effect.

 

Sentiment remains horrid as bulls are outnumbering
bears by a very wide margin.

 

GOLD stocks continue to move higher.

 

BUT…

 

What’s happened since Monday?

 

The SOX breaks out…

 

The NEW HIGH LIST expands to over 500 names.

 

The RUSSELL 2000 moves to new highs.

New names are breaking out of primary bases, like:

 

 

…and older leaders are breaking out of secondary
bases.

 

Yes, the market is overbought near-term. In fact,
just on a price basis, we could get a pullback soon. But overbought can become
more overbought. Surprise…surprise…surprise…the bulls are keeping the
upper hand.

Gary Kaltbaum