Over The Past 8 Days, Here’s What We’ve Seen

  • November 5, 2004
  • Gary Kaltbaum

I purposely have not written all week.
I would have simply told you to wait. Wait for the election. Wait for the
reaction. Wait for the job’s report. Methinks we don’t have to wait anymore.
The market has spoken and so far…rates a big WOW. The lagging S&P, led by
the lagging big-caps…are no longer lagging. 

 

GE, WB, WFC, WMT, AXP and other big caps had a fire lit under them…simple as
that. We haven’t seen this in quite a while. If anyone had any question about
the reaction to a Bush victory, you now have your answer. When Kerry was first
announced the winner by the soon-to-be retired exit poll business, the market
tanked. You have seen what it has done since.

 

The market is going to gap up this morning on a good job’s report. THE MARKET
IS EXTENDED, OVERBOUGHT, FROTHY…you name it. The S&P will gap to a new
yearly high this morning. Thus, be careful about buying into this open. I
would not bet against a pullback here but just don’t know. A lot of uncertain
money is coming off the sidelines all at once and anything can happen.

 

But that doesn’t change the fact of what we have seen over the past 8
days…serious accumulation by the big money crowd…and I will never argue
with that.

 

That leads me to the NASDAQ. It had been leading up until the past couple of
days. Some say that is a negative. I say that if this market move continues,
you will see money flowing from one area to another…in a bullish way…so
don’t bet against it just yet. As always, we will play it day by day. I will
have a much more comprehensive report for you on Monday.

Gary Kaltbaum