Whew!
Gary Kaltbaum is an investment advisor with
over 18 years experience, and a Fox News Channel Business Contributor. Gary
is the author of
>The Investor’s Edge. Mr. Kaltbaum is also the host of the nationally
syndicated radio show “Investor’s Edge” on over 50 radio stations. If you
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I told you in my last report that unless the market experienced one of
those positive reversal days, odds favored more downside work.
If you think I have any idea about what happened in the last half hour
yesterday, you are being too kind. The market was falling off a ledge…and
someone pushed the life saver button…simple as that. I do not believe in the
Oliver Stone theories that whenever the market gets in trouble, there is a
PLUNGE PROTECTION TEAM…but closes like yesterday make you wonder. Maybe
yesterday’s last half hour was one of those positive reversals…but markets
still finished down…but nevertheless, what a comeback. As a technician, I
wont even try to make heads or tails out of a move like that…except to say
that we could have seen a near-term washout. All that means is that we had a
big 3-day drop…and as the markets broke important support levels, a ton of
selling…some panicky selling…occurred. It then fed on itself washing out
everyone who wanted to sell in the near term. At that point, buyers and short
covering took over. I suspect there will be some upside testing here…but
nothing has changed. The charts did not change…and they are gross. Very
simply, all the ugly action we have been seeing, all the breakdowns and all
the deterioration do not change because the market MAY HAVE found a near-term
low.
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ENERGY… When I made the call of a top, little did I know we would see a
bungee jump…but with so many momentum players into the game, one had
to figure it could get ugly very quickly. I suspect ENERGY will bounce here
also. It remains to be seen whether this was a real top or just a blip in a
larger bull market. I will have a huge report Monday morning.
Gary Kaltbaum