The bear market is gaining teeth
Gary Kaltbaum is an investment advisor with
over 18 years experience, and a Fox News Channel Business Contributor. Gary
is the author of
>The Investors Edge. Mr. Kaltbaum is also the host of the nationally
syndicated radio show “Investors Edge” on over 50 radio stations. Gary is also
editor and publisher of “Gary Kaltbaum’s Trendwatch”…a weekly and monthly
technical analysis research report for the institutional investor. If you
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Call Dr. Baden for the autopsy because the attempted rally is dead as the NASDAQ
broke below the lows it set on June 14th.
The blame for Thursday’s action was OIL going up another $3. The blame for
Thursday’s action was heightening Middle East problems. I wanted to be clear. If
we were in a bull market right now, the stock market would not be going down
like this. I am not naive. Geopolitical news does have an effect on markets. The
news does not help…but we have had Middle East problems since I was born. OIL
PRICES have been in the 70s for months. Please recall the London bombings. The
markets went down for a few hours and then ramped right back up. Why? Because
the market was still in a bull phase at that time. Keep things in perspective.
This bear market started on May 11…not on July 13.
What now?
Nothing but a bloodbath over the past week with no let up in sight. This bear
market is gaining teeth and desperately needs to be respected..
The worst acting areas…NASDAQ/NASDAQ 100/SOX have had a mini-crash over the
past few days. The best thing I can say is that they are so due for a
bounce soon. Any type of stabilization in this market will send these very
extended and oversold areas into bounce mode. Just keep in mind, in bear
markets, every bounce will eventually be sellable…and who says we will even
get a bounce.
The TRANSPORTS have now put in the double top we told you about and are now
starting to roll over. This is another important area that has gone by the
wayside.
As I thought would happen, the rest of the market is now playing catch-up to the
weakest areas. Their patterns are horrid. We continue to believe you should be
at your most defensive position right now because we believe we are still in the
early innings of this bear that will have more to go in time and price.
We will have a much bigger report for Monday.
Don’t forget to watch the FOX NEWS CHANNEL’S BUSINESS BLOCK
SATURDAY AT 10 AM ET. I WILL BE APPEARING ON “CASHIN IN” AT 1130 AM.