Here’s A Level Not Seen Since 1987
Texas Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating) warns. Nokia
(
NOK |
Quote |
Chart |
News |
PowerRating)
warns. Federal Home Loan
(
FRE |
Quote |
Chart |
News |
PowerRating) blows up on accounting problems as well as
possible criminal activities. A year ago, the market would be toast. Today, just
the opposite. Very simply, the market continues to shrug off any bad news. As I
have been telling you, the market remains in good shape. The pullbacks are being
bought up with ferocity and are quick and controlled…and now, more and more
groups that have not participated, are coming to the fore.Â
I have no idea how far this goes or how long this rally lasts. Just continue to
find stocks that are breaking out of quality bases with volume. The good news is
that while extended names are pulling back, new names are showing
up…indicative of strength.
I am now finding good charts in the OIL sector as the OIH broke out.
Names like
(
RDC |
Quote |
Chart |
News |
PowerRating),
(
PXD |
Quote |
Chart |
News |
PowerRating) went along for the ride.
BUT…please keep your eye on the ball. As of now,
we have been rallying for 12 weeks…just 12 weeks and the market is awash with
froth, speculation and fear of not being in. Bearish advisors are now down to
16%, the lowest level since mid-1987….yes…1987. So far, the extremely
bullish and extremely low bearish sentiment has not come into play. Let’s hope
that continues. The good news is that we give priority to market action
first…and nothing bad there.
Lastly, last Friday’s high-volume reversal day has not been taken out
yet…something that should be noted. It would be normal to rally back up into
that area before putting in a pullback that would last more that one day…but
let’s not get in front of the scenario…let’s react to it.
Gary Kaltbaum