This Remains A Great Indicator
I don’t have a whole load
to add to my recent reports, except to say the markets remain in
fine shape, short-term corrections aside. Major indices held support right at their
respective 50-day averages. ..right where they should hold to stay in this
up-move. If there is anything you need to watch to tell you the rally is over,
it’s the 50-day average…especially for the
SEMICONDUCTORS. This group remains a great indicator for the market.
to add to my recent reports, except to say the markets remain in
fine shape, short-term corrections aside. Major indices held support right at their
respective 50-day averages. ..right where they should hold to stay in this
up-move. If there is anything you need to watch to tell you the rally is over,
it’s the 50-day average…especially for the
SEMICONDUCTORS. This group remains a great indicator for the market.
- I expected a bounce off of the 50-day but it
was much stronger than I thought.
- The NEW HIGH LIST expanded strongly last
week…a strong positive.
- Lots of negative talk about the market
reversing the great GDP news.
- World markets continue to act well.
That all said, the tape has become split as many
stocks have blown up on their earnings reports. I would avoid those names that
just gapped to the downside and find new names that are just emerging. The message remains…buy the strong volume
breakouts…stop out quickly when wrong…and never fight the tape.
stocks have blown up on their earnings reports. I would avoid those names that
just gapped to the downside and find new names that are just emerging. The message remains…buy the strong volume
breakouts…stop out quickly when wrong…and never fight the tape.
Gary Kaltbaum