This Sector Has The Makings Of A Move

  • September 13, 2004
  • Gary Kaltbaum
 

I believe we are all a
product of our experiences. This past weekend, I had the humbling
privilege of appearing on FOX NEWS CHANNEL. The show emanated from a terrace
from a building overlooking the 9/11 site. Words cannot describe my feelings
as I stood there looking out at the loved ones calling out the names of the
deceased. I have never been accused of being speechless. This was one of
those times. Never forget!

 

Nothing has changed since my last report.

 

TECHS/SEMIS NASDAQ continue to get money flows.
Please notice how I did not have to predict anything about the SEMIS. I
simply interpreted that a low was put in on Thursday. Time and again, we prove
that all you really need to know is what is happening today. I noticed several
things all occurring at the same time:

 

Just about every ANALyst on Wall Street turned
bearish…at the lows!

 

Extreme bearishness on the group.

 

A ton of confessions by the companies AFTER the
drop.

 

BIG volume off the low on Thursday.

 

Combine this with the fact that this area has
become under-invested and heavily shorted and you have the makings of a move.

 

Let me be clear…I have no idea how long this
lasts or how far this move goes. I do know, as of this second, I expect it to
continue. Keep in mind, there is a lot of repairing to be done. It is normal
for the first move off a low to be violent. If it continues, more resistance
will be hit where you will see pullbacks and better entries.

 

I did want to make note though, that underneath
the surface, it is starting to feel that the DOW/S&P-types are now feeling
tired out. It almost feels like the world is now ignoring the areas that HAD
been working in order to buy TECH. This is a complete flip-flop (no pun
intended) from the past few months. So…expect the NASDAQ to continue to
outperform for this second.

 

Gary Kaltbaum