Some Important Things Have Happened
Well, I thought the
market would have a short-term bounce off of the 50-day average.
I did not think the market would ramp up so quickly. Welcome to the
continuance of the bull move. A few important things happened in the past
couple of days.
market would have a short-term bounce off of the 50-day average.
I did not think the market would ramp up so quickly. Welcome to the
continuance of the bull move. A few important things happened in the past
couple of days.
All major indices bounced right off their
important 50-day averages.
important 50-day averages.
Volume was heavy on Tuesday, indicating
institutional buying…and may I venture to guess that short sellers were also
scrambling to cover. I know of quite a few that became more than emboldened
last week.
institutional buying…and may I venture to guess that short sellers were also
scrambling to cover. I know of quite a few that became more than emboldened
last week.
A good number of breakouts occurred…especially
in the SEMI area.
in the SEMI area.
The SOX has already moved to a new high.
The NEW HIGH LIST expanded once again.
Mergers and buyouts are becoming more frequent.
That takes stock off the market and values companies in the industry at higher
multiples.
It has been a very tough, very choppy and very
psychotic market the last few weeks. The short -erm moves have been
incredible…both up and down. BUT…the last few weeks have now passed. Do I
dare say the market has gone from oversold to overbought in two days? With
Tuesday’s action, I would buy the names that have just broken out…or on
pullbacks towards their pivots. Of course, just in case, keep your normal
stops.
Gary Kaltbaum