What This Rally Is Missing

• June 8, 2004
• Gary Kaltbaum

The rally continues.
I do not want to throw cold water on things but…where is the volume? Volume
is the lifeblood of the markets. Without it, rallies fail. Maybe it is the
summer…maybe it is Reagan’s death. I don’t know. I do know one thing:
rallies cannot last without the “big money” in the game.

 

That said, technically, things continue to get
better.

 

The NEW HIGH LIST has expanded.

 

More and more stocks are setting up to POTENTIALLY
break out.

 

BROKERAGE stocks look to have turned the corner.

 

And…most importantly, major indices have moved
above near-term resistance and are poised to attack this year’s highs.

 

The DOW moves above  10,300.

 

The S&P 500 moves above 1130.

 

The NASDAQ moves above 2000.

Near-term, we are probably overbought, so maybe a pause could be in the
cards…maybe.

 

As you know, I try not to get too far ahead of
things…so I won’t today. I will just say that if there was conviction in
this move, real conviction, I would be 100% invested right now…just based on
price movement. There are enough good-looking names to get me there. Just show
me some volume.

Gary Kaltbaum