Don’t Sweat It
Capitulation!
Capitulation! Capitulation! Capitulation! What’s with that? All day
Friday. All weekend. The new buzzword: One more time, everyone join in:
Capitulation!
Is it possible that just one of these supposed gurus could look at the numbers?
1800! 1800! 1800! 1800! The Dow dropped almost 1800 points in 10 days. Eighteen
hundred points. Why is this good? These gurus are saying that the Dow dropping
so much is good for the market. Maybe I am nuts.
Is it possible that just one of these supposed gurus could look at a chart?
Here is one:
To all the gurus: This is a bad chart.
Here is another one.
This is a bad chart.
This is a bad chart.
I know about Thursday’s high-volume reversal. I know about the VIX. I know about
the VXN. I know about the covers of Newsweek, Time, US News
and Fortune. I know about the TRIN or Arms Index. I also know about three
Fed rate cuts. There are a lot of positives on the sentiment front. There are a
lot of positives on the monetary front. The problem is the most important aspect
of investing: The technicals are still in bad shape .Hmmm! Maybe this is the
capitulation and the bottom is in place. After all, at the lows in ’98, the
technicals were in bad shape. That didn’t stop the market from making a
V-shaped move. One problem: I knew the 98 bottom.
                   Â
    The ’98 bottom was a friend of mine.
                       Â
 This is no ’98 bottom.
Simply put, if Thursday was the end of the bloodbath, don’t sweat it. You will
have plenty of time. The technical condition of most sectors and stocks is still
in very rough shape. Lots of time to heal the damage. There is absolutely no
leadership at this point in time. There are hardly any setups. I definitely want
to be a little late, not early in this game right now. I do believe there will
be more upside testing here. I just have my doubts at how long it last.
There are a few names in Gaming that are popping out like
(
SHFL |
Quote |
Chart |
News |
PowerRating) and
(
SLOT |
Quote |
Chart |
News |
PowerRating). A few Semis have broke out above resistance but are still
50% plus off their highs. Believe it or not, that’s it. Going through
Dailygraphs this weekend proved nothing to me. Not even close.
