Here’s What I See For The Nasdaq
I have been talking
about the topping-out process the market has
been going through…and most do not believe it.
about the topping-out process the market has
been going through…and most do not believe it.
I have been talking about the many sectors that
have broken down and have seen their highs for this cycle…and most don’t
believe it.
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I have been talking about the fact that this tape
is going to remain challenging at best…and most don’t believe it.
is going to remain challenging at best…and most don’t believe it.
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While the average stock continues to act poorly,
most keep saying that the major indices have hardly budged…so don’t worry. I
think you may want to worry.
most keep saying that the major indices have hardly budged…so don’t worry. I
think you may want to worry.
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Just like the bottoming process took months to
complete, so does the topping process. The market does not ring a bell at tops
or bottoms. One literally has to get out the microscope and go deep into the
internals on a daily basis.
complete, so does the topping process. The market does not ring a bell at tops
or bottoms. One literally has to get out the microscope and go deep into the
internals on a daily basis.
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I believe some areas of the market need to put in
a goal-line stand…right here and now…particularly the Nasdaq.
a goal-line stand…right here and now…particularly the Nasdaq.
Looking at the chart, we see only negative
action. Notice how we dropped straight down for a few days recently on heavy
volume. Then, look at the past 3 days’ bounce…very lackluster bounce and a
deterioration in volume on the way up. Very simply, a break below Friday’s
lows should take you to March’s lows at 1896. At that point, the Nasdaq would
be under the very important 200-day average. A break of that number…and see
you at 1800.
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Keep in mind, the Nasdaq will be the worst place
to be as we transition into a bear market. So far, that has been the case. I
do believe the highs for this cycle have been put in for the Nasdaq
already. It can bounce at any time but notice how all the recent bounces have
been anemic, at best. If you have been listening, you own no Nasdaq
TECH-TYPES at this point in time.
to be as we transition into a bear market. So far, that has been the case. I
do believe the highs for this cycle have been put in for the Nasdaq
already. It can bounce at any time but notice how all the recent bounces have
been anemic, at best. If you have been listening, you own no Nasdaq
TECH-TYPES at this point in time.
Gary Kaltbaum
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