Price Takes Precedence

November 29, 2001
Gary Kaltbaum

Most of my
reports over the past couple of weeks start with the words that
“not much has changed.” Well, this time is a little different. First
off, IÂ have been harping about all my sentiment indicators flashing
warning signs. They are outlined in my
last report. Sentiment indicators work very well for me but price action
always takes precedence. Wednesday’s and Thursday’s action could change the
playing field.

BUT, it’s important to not jump the gun and think
that all of a sudden it is the end of the market. After such a strong run, you
have to expect pullbacks. It is the type of pullbacks that now matter. I will be
looking for several key themes to tell me whether this is normal, or something
much worse. Easily, the most important thing I will be looking for is
breakdowns. If some of the leading names start to break support, that occurrence
will be worrisome. If the continued drops occur on heavy volume and the rallies
on light volume, that will be worrisome. If complacency pervades the drops, that
will be worrisome.

Let’s move on to another insider report. You remember the
last time I put out a bunch of names with insiders selling at the lows?
Those stocks, on average, were crushed. Here are a few more for your review.
Please remember that just because insiders sell, doesn’t mean the stock will go
down. I just believe in logic. If insiders sell after a big drop, would you have
confidence? Some of these names have heavy selling, some with a little. Some are
options-related, some are not…and some were on the first
list I gave out.

This is not a commentary on the overall technical condition of these stocks —
they are listed as targets for further research for one reason only: reported
insider selling.

Price Takes Precedence

BUY THE FEAR, SELL THE GREED

Quick Links

Company Info

Contact

Company Resources