So Far, So Good

  • May 2, 2001
  • Gary Kaltbaum

Hey
kids! Let’s do some technical analysis of
the major indices today. Why? Because…so far, so good. The market is going
along with my script quite nicely.

Many investors are continually worried that the Dow is going to run into a ton
of resistance at 11,000. They are right. Well, not necessarily to be worried but
that 11,000 could be tough to overcome. This is about as definable resistance as
you can get. I will just go to say that if the Dow does break out above 11,000,
it would be another notch in the bulls’ belt. Watch this number carefully.

The S&P 500 has a load
of resistance at the 1290-1300 level. First off, you have to like the fact that
it broke above the April 19 high at 1253. Again…so far, so good.

The Nasdaq…yes the Nasdaq.
The index that turned millionaires into not-so millionaires in the last year. Very
simply…if the 2200 holds…and odds favor it does (especially with a
few big-cap names acting better), it would complete a cup and handle off of the
lows. I never like to predict but if my arm was twisted and pulled back just
enough….I would have to blurt out 2400 as the next stop. What a courageous
call!

So let’s recap. It is very important that
the Nasdaq stay above 2200 and the S&P 500 at 1253. Tomorrow is another day.

Yes, I know the market is overbought. In fact, very overbought. Just a little
lesson…How many times was the market oversold in the last year only to
continue to go lower? Get the hint. Just play things day by day and you will
stay ahead of the game.

Big
Joke of the Day

Hey, I didn’t know Henry Blodget was still around. How in the Big Guy’s name can
somebody roll this guy out with his opinion of Priceline?
In his defense, he was bullish most of the way up…but this man rode the stock
down from $165 to $3 with a buy
rating…changes it to neutral at $3…watches it rally to $7 and then upgrades
it. Now, call me stupid, but does this man deserve any credibility? I hope none
of my readers or listeners fall into the same trap of listening to these donut-heads
just because it is a better market. No offense to Mr. Dunkin.  Â