The importance of follow-through days
Gary Kaltbaum is an investment advisor with
over 18 years experience, and a Fox News Channel Business Contributor. Gary
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As I have said, the market is never ever going down again.
Would you believe I have received emails asking me if I was serious.
I cannot add much to what we are seeing in the market. In spite of extended,
stretched and overbought conditions, the “market” refuses to correct for even a
few hours. Unless distribution shows up in a meaningful fashion, play it for
what is worth. Just keep in mind, eventually everything reverts back to the norm
eventually.
COMMODITY stocks of all kinds are now in play again as many groups are now
coming up the right side. This does include OILS as I believe OIL PRICES are
putting in a near-term low here.
The SEMICONDUCTORS have acted awfully recently…and were on the verge of
breaking down out of an inverted cup and handle. SAVED! The SOX popped
yesterday…which only elongates the market’s move. I think it is noteworthy
that so many names in this group have warned but refuse to drop.
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warned yesterday and popped for almost $2.
The BOND market held right at intermediate support. I will know a lot more on
this rally…but watch the
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PowerRating) as a break below $86.72 would be a big
negative.
The better BOND MARKET is starting to help the HOMEBUILDERS again., In spite of
dire numbers, they refuse to buckle and break the recent lows. I am actually
seeing a few make higher lows. The more names that break above resistance…the
better.
I really don’t need to say much more. This is a moment in time where one has
their mouths wide open looking at the persistent move in the market. Short
sellers must have no hair left on their heads. The August 15th follow through
got me off the short side. All I can say is WHEW! I am glad I follow O’Neill’s
rules and discipline about follow-through days. I was skeptical of this one but
it was good enough for me to respect it.