The Most Important Characteristic Of This Market

• September 15, 2003
• Gary Kaltbaum

Very little has changed
since my last report. The market remain in fine shape. Regardless
of the daily zigs and zags, it is important that you stay focused on the most
important characteristic of this market: the simple fact that most
stocks continue to be in technically healthy shape. I can’t overemphasize
enough that the market will not run into much trouble until that changes. My
best guess is that 7-8 out of 10 stocks are either in uptrends or sound
consolidations. Another important point is that I cannot find too much that
looks shortable. When the market was in a downtrend, it was like shooting fish
in a barrel for the shorts.

That said, I
want you to continue to concentrate on those areas that look the best. They
include SEMIS…on pullbacks only, TELCOM, BIOTECH,
WIRELESS, INTERNET,
SCHOOLS, GOLD…only on pullbacks.

I also wanted to make note that
BONDS are doing
just what I thought. They bounced on cue and are now into resistance. I am not
so sure about how much more the bounce goes.

Lastly, BIG-CAPS have been notably the laggards of
this rally. Let’s take a look at several charts. After all, a picture is worth
a thousand words. Very simply, if these big-cap names break out, you can
expect another move in the DOW and S&P.