The ‘Wrong-Way Crowd’ vs. The ‘Right-Way Crowd’
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. If you
would like a free trial to Gary’s Daily Market Alerts
Not a lot has changed from my recent reports.
Very simply, the market refuses
to get a head of steam here…but the good news is that it continues to hold
what is now becoming more important support. I am now using the word
“important” because it has now been retested several times. I am talking about
support because the market has been reversing any early up move. I am talking
about support because OUR markets have refused to move higher even though
European and Asian markets continue to act well.
It is now a simple task. If support is broken on the major indices, what has
been so far a controlled and rotational correction…would become something a
little bit more nasty. If support holds and the market starts to lift AND HOLD
the move, then we can look at the leadership names I have told you about in
past reports. Yes, I do believe we can potentially be at an important
juncture.
Support levels are S&P
(
SPX |
Quote |
Chart |
News |
PowerRating) 1219 and more importantly 1215…DOW
(
DJX |
Quote |
Chart |
News |
PowerRating) 10,503…NASDAQ
(
COMP |
Quote |
Chart |
News |
PowerRating) 2129…which happens to be the 50-day moving average.
I do like the fact the SOX
(
SOX |
Quote |
Chart |
News |
PowerRating) is trying to turn up here. I do like the fact that
everyone I speak to is worried about the “dreaded” month of September. I do
like the fact that specialists continue to short at a low rate while odd-lotters
continue to bet on lower prices. It is not often a bad thing when the
“wrong-way crowd” is betting on lower prices and the “right way crowd” is
betting on higher prices.
In any case, I believe it is important to take a step back and let the market
decide its next move.
Gary Kaltbaum