Now the fun begins…

  • November 3, 2005
  • Gary Kaltbaum


Gary Kaltbaum is an investment advisor with
over 18 years experience, and a Fox News Channel Business Contributor. Gary
is the author of href=”https://tradingmarkets.comtmu/store.site/swingtrading/Books/6026/”
>The Investor’s Edge. Mr. Kaltbaum is also the host of the nationally
syndicated radio show “Investor’s Edge” on over 50 radio stations. If you
would like a free trial to Gary’s Daily Market Alerts


href=”https://tradingmarkets.comsubscriptions/details.cfm?item=5736&subcat=st”>
click here
or call 888-484-8220 ext. 1.




$60 oil…indictments…Iraq…Fed raising rates…long-term rates
rising…Iran.

You name it, bad news continues to grab the headlines. In
spite of this:

 

The recent follow-through is alive. In fact, the move up is starting to get
some teeth. Once again, the market is teasing the upside…and hopefully, one
of these days, the market will finally decide to break out of this nauseating
22-month trading range.

 

I like:

 

That all the areas that topped in July are now turning the corner and turning
back up. The list includes HOUSING
(
HGX |
Quote |
Chart |
News |
PowerRating), RETAILING
(
RLX |
Quote |
Chart |
News |
PowerRating), GAMING and other CONSUMER areas.

 

The NEW HIGH LIST is expanding. The NEW LOW LIST is contracting.

 

Volume patterns have been bullish. Higher volume on the up days and lighter
volume on the pullbacks are ingredients for higher prices.

 

Major indices are back above moving averages. The Dow
(
DJX |
Quote |
Chart |
News |
PowerRating) still needs a little
work but as you know, we give less weight to the Dow.

 

Breakouts…breakouts…breakouts are occurring.

 

All this is terrific but now the fun begins. Major indices are now getting
closer to their recent highs. I suspect we will know sooner rather than later
what the market has in store.  For 22 months, it has been one giant tease, both
to the upside and downside. Eventually, something is going to give. I will
take it either way.

Gary Kaltbaum