Look At The Action On These Past Leaders
For
me, pictures are worth a thousand words.
The Nasdaq dumped yesterday on
huge volume. One day of selling is meaningless but…
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(
SNDK |
Quote |
Chart |
News |
PowerRating) breaks down on massive volume.
src=”https://tradingmarkets.com/media/2003/Kaltbaum/gk120403-02.gif” />
(
CECO |
Quote |
Chart |
News |
PowerRating) does a bungee jump.
src=”https://tradingmarkets.com/media/2003/Kaltbaum/gk120403-03.gif” />
(
LEXR |
Quote |
Chart |
News |
PowerRating) goes night-night.
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These three stocks are past leaders. Other names I have listed in this column
that were leading are…
(
AMZN |
Quote |
Chart |
News |
PowerRating)…which failed right at its 50 day average.
src=”https://tradingmarkets.com/media/2003/Kaltbaum/gk120403-05.gif” />
(
ERTS |
Quote |
Chart |
News |
PowerRating) which broke another near-term low.
src=”https://tradingmarkets.com/media/2003/Kaltbaum/gk120403-06.gif” />
As markets go through corrections, I am seeing more and more blow-ups. This
is not to take away from the many stocks that are still in fine shape. I just
wanted to point out that things are getting tougher. I would be tightening things
up a bit…especially in extended stocks.
One last point to make is that the Disk Drive
stocks are toast…
(
WDC |
Quote |
Chart |
News |
PowerRating),
(
STX |
Quote |
Chart |
News |
PowerRating),
(
MXO |
Quote |
Chart |
News |
PowerRating),
(
FLSH |
Quote |
Chart |
News |
PowerRating). Historically,
the Semis follow soon after. We
need to watch this closely as the Semis have been a great indicator for the
market.
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I know this report sounds negative. My main point is that I want you to go slow
here….especially in the hottest areas of the last few months. They provide
a great reward when things are going right. BUT things
eventually change. Those caught napping will pay a stiff penalty. I would rather
think about potential negatives before they happen. My guide will continue to
be the daily action the market provides…good or bad.
Gary Kaltbaum