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!
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Things I am seeing:Â 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.
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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.
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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!Â
Gary Kaltbaum