Overloved And Overowned…And Just Look What Happened
We believe sector
analysis is more important right now as the “market” continues
its nauseating range-bound action.
We told you recently that COMMODITY areas had
topped. In our last report, we told you that after a brief bounce, the
bounce looked to be over. Not only is it over, but CYCLICAL/COMMODITY areas
are now being crushed…and on volume. We would stay far away from all of
these areas right now as they are under strong distribution. Â
We also told you that OIL prices as well as the
underlying stocks have topped. They are part of the carnage also.Â
In fact, the drop in some of the names this past
week has been startling. You may also include the TRANSPORTS in the areas
that are being bloodied.
Do not play games in these areas. As we have
said in past reports, they had become overloved and overowned AFTER the big
move. When things turn South, they turn South in a hurry.Â
We would love to talk major indices but we just
figure it will continue to go up and down 100 points every day. That’s a
joke…we think!
Gary Kaltbaum