This Is What I Am Seeing Now

Are we having fun yet?
The one thing I have told you for months…stands! This tape is
going to remain tough. Go slow!

 

Things I am seeing: The 10-year yield sliced
right up through intermediate-term resistance.

If this continues, it will add to the pressure we are starting to see in
anything INTEREST-RATE SENSITIVE. I am watching the bond market more closely
now than ever before.

 

Most COMMODITIES-types started their pullback in
the last few days. It gained some teeth yesterday. I suspect we are going to
see more corrective action here…especially in the ridiculously extended
OILS.

 

SEMICONDUCTORS continue to show excellent relative strength. They were hardly
down yesterday…while the market tanked. Continue to watch the 450 area for
the SOX. A break above would be quite positive for the SEMIS.


Overall, bulls cannot be excited about yesterday’s
high volume drop that breached the recent breakouts of the DOW and S&P. I am
not willing to call it a day yet…but let’s be clear: if more distribution
days show up here, the “market” will not have a chance. I expect more day-to-day whipsaw. Go slow! 

Gary Kaltbaum