The Benefit Of The Doubt

December 31, 2001
Gary Kaltbaum

The markets continue
to act well. In fact, more and more stocks are setting up
in bases. Whether they break out or not is another story. The good news is
that more and more names have
broken out as the NEW HIGH LIST has expanded.
SECONDARY
stocks continue to lead the way as many stocks under $20 are acting
well. This is happening while the
major indices have been churning.

This scenario
can also play out badly. I never want to see speculative froth. It
is long-term bad for the market.
But until the market starts gagging, it gets
the benefit of the doubt. About the only thing the market has going
against it is that all my
short-term sentiment indicators continue to flash red
lights…but stock price performance counts first, and secondary indicators
are named secondary for a reason.