In This Market, Here’s What You Should Pay Attention To

I was asked last night if there was anything I like about the markets.
Absolutely! Here are some positives to chew on.

WORLD MARKETS are still in good shape. I do not believe it will be easy for
our markets to go into a real bear market when most other markets are still
acting well. That said, our market right now is weaker than most.

I like the fact that the S&P and DOW are putting up a fight right where they
need to. That is 1163 and 10,350ish respectively. As long as these areas
hold…

INTERNETS are trying to turn the corner. GOOGLE has moved above near-term
resistance. The HHH has made its first higher low. I am bringing this up
because the INTERNETS had led the market for a long time.

I still have a list of stocks that are acting well…short as it may be. I
continue to like the action in many RETAILING names and a few other areas.

I like the fact that the DOW/S&P only have been down only 4% and NASDAQ about
9-10% and hearing lots of talk that the world is ending.

All in all, I do believe a corrective bounce is close at hand. The most
important thing you can do is to measure the bounce based on its volume and
where it aborts. If bounces continue to be anemic and if the A/D does not
improve, the market does not have a chance. You must also continue to scan to
see if more and more positive charts start to surface. The more…the better.
So far, not thrilled but as you know, anything can happen. More importantly,
we are now headed into earning’s season. Pay more attention to the reaction to
the numbers….not just the numbers and certainly not to opinion.

Lastly, do not forget, my radio show comes to you from Washington DC tomorrow
by invite from the White House. I will be interviewing many luminaries from
the Bush administration. You can listen at
www.businesstalkradio.net live
from 5-7 pm est.

Gary Kaltbaum