It’s Going To Take Time
Ralph
Kramden: “This is probably the biggest thing I got into.”
Alice Kramden: “Ralph,the biggest thing you have ever got into is
your pants.”
Now that’s
comedy… and with a market like this, one needs to laugh and smile
about something.
I went through my charts not only once on Sunday, but twice. Just had to make
sure I was seeing what I was seeing… or not seeing. What I am not
seeing is any resemblance of breakouts. Not even close. Yeah, I heard all the
talk about the Naz reversal on Friday. Only one question. Where was the volume?
Reversals need volume to clean out the panicky sellers. Maybe the Naz bounces
higher here, but don’t expect it to last. No
leadership. Maybe most of the damage is done in price — maybe.
After all, 55% should be enough. I just think it’s going to take a lot more time
to repair the damage.
I am more interested in writing about interest-rate-sensitive sectors. They have
been the linchpin for many bullish analysts to hold onto during the last year.
They have now topped, at least in the near term. Banks, finance, homebuilders
and utilities have all now started to play catch-up. So what’s left? Not much.
If these sectors are becoming toast
while the Fed is lowering rates, there may be more wrong than meets the eye. Now
I am an optimist at heart, but this is getting downright hairy.
My best advice: a good dose of “All in the Family,” “Honeymooners,”
“Mash” and, of course, “Seinfeld.”