Here’s what a real upside reversal looks like

  • October 19, 2005
  • Gary Kaltbaum

Gary Kaltbaum is an investment advisor with
over 18 years experience, and a Fox News Channel Business Contributor. Gary
is the author of

href=”https://tradingmarkets.comtmu/store.site/swingtrading/Books/6026/”
>The Investor’s 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


href=”https://tradingmarkets.comsubscriptions/details.cfm?item=5736&subcat=st”>
click here
or call 888-484-8220 ext. 1

Albert “Einstein” Greenspan is now saying energy prices are a drag on growth.
Hey thanks!

 

Unfortunately, the market is following the script to a tee. The recent bounce
was anemic and light volume. The recent bounce could not get the major indices
above resistance. The recent bounce looks to have already failed.

 

Notes:

 My call of a near-term top in OILS is now taking on something of
intermediate-term consequence. Volume patterns are horrid and should be
respected.

 

CONSUMER areas that topped out first are now attempting to carve out new lows
after their recent bounce.

 

NEW HIGHS…what new highs? NEW LOWS have been expanding.

 

WORLD MARKETS continue to follow us down. The one positive factor that I was
pinning my hopes on was the ability for WORLD MARKETS to hold up. In the past
3 weeks, they are joining the ugly party. This only adds to the negatives.

 Other COMMODITY areas are also going for the ride on the downside. Just
another check mark for the negative column.

 

I wish I had better things to say, but hey, I just interpret the action. Unless
we see a monstrous high volume reversal day to the upside, stay clear. A high
volume reversal to the upside would wash out all sellers for the near term. I
don’t predict an occurrence like that. I react to them. What you would be
looking for is a very weak open on so-called bad news…and a reversal to the
upside.

 

Lastly, Wilma is no longer a joke. It is now a monster Category 5 hurricane.
Anyone in its wake, you should get out…including my family. As of this
second, it looks like southern Florida is going to catch the brunt but the
rest of Florida should get some sort of hit. If it turns just a wee bit north,
the Kaltbaums will be in the crosshairs. Not thrilled!

Gary Kaltbaum