How To Stay Ahead Of The Game
So…which
is it? Will the NYSE cave and play catch-up with the recent
drubbing in the Nasdaq or will the NYSE be strong enough to lift the Nasdaq
back up? I just don’t know…but here is what we do know.
Many leading stocks have gagged. I am a big believer in following leading names.
The SOX
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) broke
the 494 level I told you about. I do believe the SOX has some work to do before
it can get moving to the upside again.
I suspect a bounce is due about now for the Nasdaq-types.They are a bit oversold.
I will know a lot more by how good the bounce is.
ON THE OTHER HAND, the NYSE-types continue to display
fabulous relative strength here. In fact, the DOW is now a stone’s throw away
from 10,000. Of course, for you and me, this number is meaningless. Others are
frothing at the mouth. Bigger-cap indices remain in great shape and should be
overweighted.
At this juncture, I am just playing it stock by stock…sector by sector. You
do need to know that things have changed as the big money is flowing elsewhere
right now. If I had a guess, I would say the Nasdaq will remain vulnerable…and
IF the NYSE-types start to gag, we may be in for
a decent correction all around. But that’s noise. Let’s continue to interpret
the day-to-day action to get the clues we need to stay ahead of this spastic
game.
Gary Kaltbaum