Let The Market Come To You

October 16, 2001
Gary Kaltbaum

Sometimes, I
am at a loss for words. OK…just kidding. But with the market just
hanging around, I didn’t really have much to say. The good news is that the
markets continue to act well off of the move from the bottom.Â

I have this
indicator that is coming into play quite nicely right now. It’s called the final
hour indicator. I have always been taught that it’s best when the market is down
all day and then finishes at the highs.Â

This is exactly what we are seeing every
day. Whether it is an anthrax scare, a terrorist threat, or an earnings
warning…the market is putting up a daily fight. Until that changes, I will
give it the benefit of the doubt. The reason for watching the last hour is
because institutions place their bets towards the close. I want to be on their
side at all times.

Now, I am getting a ton of questions on whether the markets have bottomed. I
will come back with my usual rhetoric: DON’T KNOW.
I will let the market do its continuous talking. It still does worry me that the
latest rally has been another one of those sharp moves in short order…classic
bear market action. We will just have to see.Â

If this is the real thing, there
will be plenty of time and plenty of things to do. Stocks will start coming up
their right sides, form handles and break out. The more breakouts, the better.
If things fail, as long as you keep close stops, you won’t have to worry if the
market turns tail and does the smack-down again. Â Â

The NEW HIGH LIST is still lacking, but several
names are pulling out.

(
ADVP |
Quote |
Chart |
News |
PowerRating) moves out of a cup and handle on strong volume.