Some Changes You Need To Know About
I did not think I was
going to write for the rest of the week but I am seeing some
changes you need to know about. Most importantly, I have been telling you to
overweight NYSE/Dow-type stocks while being careful about the TECHS/SEMIS.
Well, my first point is I now think the Dowtypes may be pooped out. This is
not a bad thing. It is normal. The DOW is 500 points above its 50-day average
and needs to consolidate/correct. I saw some tired action in names like
(
GM |
Quote |
Chart |
News |
PowerRating) yesterday (which had gone parabolic).
believe there is a chance the Nasdaq-types have turned the corner. I thought there
was a chance for the first 10%-15% correction in the Nasdaq. We got a 6%
correction. The reason I say this is because of the fact that:
EBay
(
EBAY |
Quote |
Chart |
News |
PowerRating)
breaks out.
Amazon
(
AMZN |
Quote |
Chart |
News |
PowerRating)
puts in a low.
Amgen
(
AMGN |
Quote |
Chart |
News |
PowerRating) turns the corner.
These are just a few. I am now watching the SEMIS
closely. The
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) bounced back above its 50-day average…a near-term positive.
Remember, I said there is a chance. I am not writing it in stone just yet.
After all, it is tough making calls in a holiday-shortened, low volume week.
BUT…when I start to see things, I want to let you know.
We will know a lot more in the next few days. If I
see more and more names in TECH turn the corner and more and more names break
out, the near-term low would be put in…and if the Nasdaq breaks above its
old high, you would simply have an 11-week-base breakout.
Gary Kaltbaum