Nothing But Improvement
Gary Kaltbaum is an investment adviser with over 18 years experience, and a Fox News Channel Business Contributor. Gary is the author of The Investors Edge. Mr. Kaltbaum is also the host of the nationally syndicated radio show “Investors Edge” on over 50 radio stations. Gary is also editor and publisher of “Gary Kaltbaum’s Trendwatch”…a weekly and monthly technical analysis research report for the institutional investor. If you would like a free trial to Gary’s Daily Market Alerts click here or call 888.484.8220 ext. 1.
The overall market has not done much since my last report but underneath the surface, I am seeing nothing but improvement. The worst areas are coming off their lows and breaking above the 50-day moving average.
(TRANSPORTS, REITS, RAILS) TECHNOLOGY continues to have a bid. RETAIL continues to have a bid. RESTAURANTS are strong. But the most important thing I am seeing is the clear lack of selling going on and the market’s ability to hold above the 50-day average.
For me, it is simple. I am giving the market the benefit of the doubt as long as the major averages and world markets stay above the all important 50-day average. This moving average is bounced into as it declines in bear phases and is pulled back into as it is rising in bullish phases. Right now, it is leveling off…meaning a potential transition phase.
On top of this, COMMODITIES continue to trace out a loooong potential bottoming process that has gone on for the better part of 6 months. Just a couple of strong days will take this area above first resistance which will most definitely help the market. This includes OILS, STEEL, METALS-ORES.
In my past reports, I had stated that this rally has a better chance to stick versus all the other rallies that petered out quickly and croaked. That doesn’t mean this won’t follow suit. But right now patterns are better and I want to give this every chance. A move above the past week’s highs will go a long way in showing the market wants higher prices…in spite of all the nausea we get to read about on a daily basis. NEW HIGHS are still on the light side but that’s because of the serious damage that has been done. Leadership will take time but seeing more and more come to the forefront. Watch to see if the new high list expands to tell you everything you need to know about the market in the near term. Earnings season soon…which will dictate policy for many stocks.
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