These Stocks Are The Place To Be…
Before I get into the
crux of this report, I want to repeat something I have been
saying since the 3rd week in January. I continue to stand by the words.NO
MATTER WHAT, THIS MARKET IS GOING TO REMAIN CHALLENGING. THE MOVE IN 2003 IS
OVER. YOU NEED TO BE MORE NIMBLE AND MOST IMPORTANTLY, SELL ANYTHING THAT
BREAKS DOWN…AS BREAKDOWNS HAVE BECOME BLOW-UPS.
crux of this report, I want to repeat something I have been
saying since the 3rd week in January. I continue to stand by the words.NO
MATTER WHAT, THIS MARKET IS GOING TO REMAIN CHALLENGING. THE MOVE IN 2003 IS
OVER. YOU NEED TO BE MORE NIMBLE AND MOST IMPORTANTLY, SELL ANYTHING THAT
BREAKS DOWN…AS BREAKDOWNS HAVE BECOME BLOW-UPS.
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The markets continue to act better…simple as
that. The tone is better. The “feel” is better. Leadership is better. As I
have told you, keep probing. If it keeps working, terrific. The main problem
remains a lack of volume. There is no way this market can get real legs
without the big money crowd showing up. As of yet, they remain on vacation.
Maybe next week will change the playing field as summer ends.
that. The tone is better. The “feel” is better. Leadership is better. As I
have told you, keep probing. If it keeps working, terrific. The main problem
remains a lack of volume. There is no way this market can get real legs
without the big money crowd showing up. As of yet, they remain on vacation.
Maybe next week will change the playing field as summer ends.
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In spite of Intel’s blow-up this morning, I am
watching:
watching:
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New highs expand.
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More breakouts working.
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Some leadership showing up…that has not
occurred in a long while.
occurred in a long while.
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The DOW and S&P 500 moving back above the vital
200 day average.
200 day average.
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The market is now in the meat of resistance. In
order to get through, and it will be tough, volume must expand. Be rest
assured, this market is in no way like 2003 where you could throw a dart.
Less than 50% of all stocks remain in poor technical shape (though the
number has improved). Plenty of groups are still not in gear and the all
important SEMISÂ cannot get any legs…as of yet.
order to get through, and it will be tough, volume must expand. Be rest
assured, this market is in no way like 2003 where you could throw a dart.
Less than 50% of all stocks remain in poor technical shape (though the
number has improved). Plenty of groups are still not in gear and the all
important SEMISÂ cannot get any legs…as of yet.
Â
The tape remains very split. There is no doubt
in my mind that the NYSE-types are the place to be. I am still very negative
on the TECHS and especially SEMICONDUCTORS, as I am still finding no
leadership in those areas. I would continue to completely underweigh those
areas except for an occasional AAPL or QCOM. I have been harping on this
theme all year in spite of many telling me I am nuts. I cant begin to tell
you how many pundits have been out there telling you to just “BUY
TECH”. There are just too many warnings and poor reactions in important
names . Your performance will most definitely be impacted by trying to pick
off the so-called lows. I have seen very little action in the way of
powerful accumulation in TECHLAND…and as I write this, the SOX is back at
new yearly lows. There will need to be a period of basing and bottoming
before any decent move can occur. Just too much damage is being done.  I
gather there could be a bounce in TECH soon as they are very oversold. There
are just no bases to buy off of.
in my mind that the NYSE-types are the place to be. I am still very negative
on the TECHS and especially SEMICONDUCTORS, as I am still finding no
leadership in those areas. I would continue to completely underweigh those
areas except for an occasional AAPL or QCOM. I have been harping on this
theme all year in spite of many telling me I am nuts. I cant begin to tell
you how many pundits have been out there telling you to just “BUY
TECH”. There are just too many warnings and poor reactions in important
names . Your performance will most definitely be impacted by trying to pick
off the so-called lows. I have seen very little action in the way of
powerful accumulation in TECHLAND…and as I write this, the SOX is back at
new yearly lows. There will need to be a period of basing and bottoming
before any decent move can occur. Just too much damage is being done.  I
gather there could be a bounce in TECH soon as they are very oversold. There
are just no bases to buy off of.
Gary Kaltbaum