Here are 7 bull and bear markets for you to trade…
Gary Kaltbaum is an investment advisor with
over 18 years experience, and a Fox News Channel Business Contributor. Gary
is the author of
>The Investors Edge. Mr. Kaltbaum is also the host of the nationally
syndicated radio show “Investors Edge” on over 50 radio stations. If you
would like a free trial to Gary’s Daily Market Alerts
Two words: ‘RED CROSS." I urge every one of you to
help out their fellow Americans in dire need. I continue to be amazed at the
destruction we have seen. I remember helping out for 3 days when Hurricane
Andrew hit in Homestead Florida. I thought that was bad. Well, it was. But
what we are all seeing is beyond all imagination.
The "market" continues to stay in a tight range.
There are many that say the market is ready to tank, akin to what happened in
2000 after Labor Day…and there are those who say a major rally is just ahead
in the last part of this year. I think it more important right now to talk
about sector analysis than the market itself. Short-term calls are just too
tough in here. The more important point is that there are bull and bear
markets occurring side by side in differing sectors.
OILS – Anyone who jumps all over this most noisy
area is jumping into a risky place. Very simply, the group is trading wide and
loose and is mostly extended in price. Wait for pullbacks.
HOUSING – This group is trying to carve out a
near-term low. Volume patterns have been turning positive but a break below
last week’s lows negates any positives.
RETAIL – RETAILERS, for the most part, have been
doing bungee jumps. Until they repair the damage…which could take weeks, we
would be sellers of any bounce. Most are trading below short and longer-term
moving averages.
BIOTECHS – This group continues to be very strong.
If the group breaks down, it will be time to really worry about the market as
leading groups failing is a strong sign. Names like
(
AMGN |
Quote |
Chart |
News |
PowerRating),
(
DNA |
Quote |
Chart |
News |
PowerRating),
(
GENZ |
Quote |
Chart |
News |
PowerRating),
(
CELG |
Quote |
Chart |
News |
PowerRating),
(
MEDI |
Quote |
Chart |
News |
PowerRating)
and others continue to outperform.
SEMICONDUCTORS – The SEMIS are turning into a mixed
bag with poor acting names like
(
ADI |
Quote |
Chart |
News |
PowerRating) and strong names like
(
TXN |
Quote |
Chart |
News |
PowerRating). A break below
457 would be a negative while a break below 450 (the recent strong breakout)
would signify a market getting into trouble. This group has led the market up
and down for years.
FINANCIALS – Short-term rates going up and
longer-term rates coming down is toxic for many lenders. At the best, some are
staying in trading ranges. At the worst, see a chart of CITIGROUP
(
C |
Quote |
Chart |
News |
PowerRating)…where by
the way, insiders are selling at the lows.
BROKERS – Surprise, surprise, surprise. The
BROKERS are acting just fine. In fact, Lehman
(
LEH |
Quote |
Chart |
News |
PowerRating) is moving out to new highs
followed by other names. It is always important for the BROKERS to act well as
they have always been a great market proxy.
As you can see, there are many crosscurrents right
now. This market is far past the point where you can throw a dart. The last
word: if the major indices break last week’s lows, what has been a somewhat
controlled correction for the indices, will become something less accommodative.
Gary Kaltbaum