Still Waters Run Deep

July 20, 2001
Gary Kaltbaum

Deep, deep, deep. Need
to go deep into the market to figure out what’s going on.
First off, and you can write this down: I don’t know when and I don’t
know which
way, but when the market decides to move, it’s going to be a doozy. I
have no preconceived notions, but my one
worry…my one big worry is that sentiment
is too complacent for my tastes. The percentage of bearish newsletter
writers is down to 23.5%, a multi-year low. This is getting to an extreme number
that makes me sit up and take notice. Remember January when I kept
mentioning that bullish advisors were at a ten-year high? Get the hint?

Keep this in the back of your mind…or front.

The market continues to decisively prefer the value areas
of the market. I am
talking about the SEARS and the JCPENNYs of
the world. My best advice for this
weekend is to take the NEW HIGH LIST and go through every stock. There
were actually 328 names. But dig deep. Yes,
there are some pretty solid names…but also a ton of illiquid-trading,
less-than-$20 stocks. So, if you hear
someone talking about the expansion in new highs, you know how to answer
them.