Play pullbacks in these areas
Gary Kaltbaum
is an investment advisor with over 20 years experience, and a Fox News Channel
Business Contributor. Gary is the author of
The Investor’s Edge. Mr. Kaltbaum is also the
host of the nationally syndicated radio show “Investor’s Edge” heard on many
stations across the country. Gary is also
editor and publisher of “Gary Kaltbaum’s Trendwatch”…a weekly and monthly
technical analysis research report for the institutional investor.Â
is an investment advisor with over 20 years experience, and a Fox News Channel
Business Contributor. Gary is the author of
The Investor’s Edge. Mr. Kaltbaum is also the
host of the nationally syndicated radio show “Investor’s Edge” heard on many
stations across the country. Gary is also
editor and publisher of “Gary Kaltbaum’s Trendwatch”…a weekly and monthly
technical analysis research report for the institutional investor.Â
First off, I was wrong on
my latest short-term OIL call. I nailed the big move since the
first of the year…but really thought they would get a good correction. Well,
they corrected for four hours before ramping for a couple of more days.
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The only thing I want to say today is that lots of
stuff is stretched and extended. GOLD, OIL, COMMODITY, SEMISÂ have all had
moves in January that are good enough for a year…no…two years. If there is
anything I do know and you need to know is that stretched and extended stocks
and sectors can only go so far before returning to the norm. Maybe these
groups just sit around consolidating recent gains…maybe they pull back into
moving averages and support levels…like they are supposed to. Once again, I
am just letting you know: risk picks up after such moves.
stuff is stretched and extended. GOLD, OIL, COMMODITY, SEMISÂ have all had
moves in January that are good enough for a year…no…two years. If there is
anything I do know and you need to know is that stretched and extended stocks
and sectors can only go so far before returning to the norm. Maybe these
groups just sit around consolidating recent gains…maybe they pull back into
moving averages and support levels…like they are supposed to. Once again, I
am just letting you know: risk picks up after such moves.
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I simply want to play pullbacks in these areas.
Whether or not we get any is another story. I just think it important to not
only have a sell discipline but you best have a buy discipline. If you don’t
know where a stock and a sector came from before buying, you are already deep
in the hole. Just don’t get me wrong. These groups are in bull mode. Until
price and volume action change, any pullbacks will be buyable at some point. I
just think there may be some work to do.
Whether or not we get any is another story. I just think it important to not
only have a sell discipline but you best have a buy discipline. If you don’t
know where a stock and a sector came from before buying, you are already deep
in the hole. Just don’t get me wrong. These groups are in bull mode. Until
price and volume action change, any pullbacks will be buyable at some point. I
just think there may be some work to do.
Gary Kaltbaum