This Is My Advice To You…

• September 25, 2003
• Gary Kaltbaum

Well, that was one big
giant matzoh ball. Before we get into the technicals, let me just
say that the bears are already out in force suggesting the top is in and the
party is over. They may be right but I would rather let the market dictate my
decisions, not opinions.

First, let’s
discuss what I perceive some negatives at this point.

Speculation is becoming more and more rampant.
In fact, I am seeing action in some stocks that remind me of 1999-2000. When I
wake up in the morning and I see a BIOTECH
company with no revenues and major losses go up 50% because
THE COMPANY says Phase 1 trials are going well,
that’s speculation.

Nasdaq margin has now topped March 2000 levels.
I leave that with you to think about. Lessons have not been learned.

Sentiment remains extremely one-sided as the
masses remain overly bullish. Please remember that sentiment is a lagging
indicator. The market usually catches up to it in due time. I hear many saying
sentiment does not matter any more.

Insiders are selling at a clip that I have
never experienced. Once again, I am hearing not to worry about this. My
advice…worry. These are the people who are running the companies you invest
in. Who knows better?
OK…so that’s the noise. Here are the technicals.
You don’t need me to tell you that Wednesday is
one big distribution day. Volume was heavy. I am seeing trouble in a few
places you need to know about. Taking a look at the
BIOTECHS, I am seeing a potential top being put in place over the past
few months.

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