Focusing On What Matters
On Sunday, May 12, Mother’s Day,
my mother-in-law, Roberta Firtell passed away. She put up a fierce battle
against cancer for over two years. I just wanted
to let you know that throughout the past two years, through chemo and
radiation, through losing her hair and through
losing her strength…the woman never
complained once…not once. When I catch a cold, I whine and whine.
So, I ask everyone today who reads this column to think
about what really does matter.
Not money, not the stock market…but family. I urge every one of you
to follow Roberta’s lead by living every day to its fullest and to be the
best you can be. I don’t believe it is a
cliché anymore to say that every day counts
and that you should cherish what you have. I know I do.
As far as the market, for the first time in quite a while,
I couldn’t care less. But there
is a job to be done…so here she goes.
Despite last Wednesday’s monstrous day, I
am even more worried about the technical
condition of the market. The rally was made up of the worst-acting
stocks and sectors in the market. This is not
good. The technical condition of
the Nasdaq and most TECHS
are still in horrid shape. These areas were the most
oversold they had been in quite a while and had to bounce. It should not
happen all in one day. This smacks of
short-covering. Combine this with the big
giveback on Thursday and Friday and the picture could be dim. And just to
show you how the market is trying to screw
everyone, look how the Nasdaq gapped 50 plus points on Wednesday. In other
words, you couldn’t even buy the first
50…the last two days gave back over 100.
You think that’s bad. To make matters worse, the areas of
the market that were acting the
best are now starting to gag. I found a bunch of previous leaders
breaking the 50 DMA. I could go on about how the major indices’ charts
look terrible, but I think you get the hint by now. I would be quite
cautious on the long side. Simple as that. I
know the markets could follow through off of Wednesday’s
action. I just don’t believe the technical condition warrants any action…even
if this does occur. There will be bounces. I promise you there will
be bounces…some of them will be big…but if more and more names begin
to break, the only outcome will be negative.
I will let you know if things change,
but that would take quite a lot.
God Bless!