Gary Kaltbaum is an investment adviser with over 25 years experience, and is 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 would like a free trial to Gary’s Daily Market Alerts click here or call 888.484.8220, ext. 1.
I believe there is a decent chance yesterday’s action constituted a turning of the corner for the market. Volume was higher and most importantly, the names and the groups that had led the market until this recent correction, started to lead again. 5 weeks ago, I told you about an impending correction but I must tell you, I would have expected more out of it in price and time. But with a Fed that continues to leave rates at zero and continues to print hundreds of billions of dollars, right now, the market is more focused on just that.
All major averages are now above the all-important 50 day moving average. This is an important occurrence. Things cannot go up if they are below. But the bigger key is that leading growth names are now breaking out nicely with secondary names holding moving averages and now moving up.
Do I think it is going to be easy? It is never easy…especially with the market’s bull phase 2 years old. But the action I am seeing is more than impressive…and until distribution shows up again, giving it the benefit of the doubt. I do expect a little flopping and chopping as major indices have now entered important resistance but again, I have to like how many growth names are now leading the indices.
I am often asked with all the bad news, how has the market been able to shrug things off? Good question. As you know, my #1 motto is that it is not the news, it is how the market reacts to the news. In bear phases, good news is sold. In bull phases, bad news is bought.
Gary Kaltbaum owns Kaltbaum Capital Management, LLC (“KCM”), an investment adviser registered with the U.S. Securities and Exchange Commission. The opinions expressed herein are those of Mr. Kaltbaum and may not reflect those of KCM. The information offered in this publication is general information that does not take into account the individual circumstances, financial situation or individual needs of an investor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results.