Why It’s Important To Remember My Motto: ‘It’s Not The News’…
I wrote this report on Sunday night. It is now Monday
morning. Europe is up 3.0% – 5.0%, and our market is once again being
jammed to the upside. Hey…another 200 point gapper…but this time to the
upside. As I looked at my report, I realized that I did not have anything to
change. Just play it slow, as there is just no way to know which way the market
is going to go overnight with all the war news. The best news is that the market
is acting bullishly to the news right now. I will be watching for reversals and
weakness in today’s gap to the upside. It is easiest to isolate weakness when
the market is strong.
The markets are still acting fine off the lows, but it is more important to talk
about what is going on underneath the surface. The fact is this market is about
as split as it can be. Before we talk about the sub-surface action, I want you
to keep your eyes on a few specific numbers…DOW 8524…S&P
500 896…and Nasdaq 1425. If
these levels can be breached on a closing basis, a move to January’s highs could
be in the offing. BUT…please understand that a ton of congestion lies ahead.
Regardless of some of the talk on Wall Street of 40% and 50% gains this year,
this market will continue to have an uphill battle as it heads into massive
resistance.
The war is still raging, and now we are entering earnings season. If you don’t
know my motto by now, I am going to give it to you again.
“It’s not the news…it’s how the markets react to the news.” We
will continue to do just that, react to what happens as the markets gap up, gap
down, reverse up and reverse down on every news announcement.
As of now, I am still worried about TECH and
SEMICONDUCTORS. I have been telling you of
their suspicious action as of late. Yes, they popped up when the market had a
big gain, but they are already starting to gag. I just don’t believe the market
can rally too far without the SEMIS, as they have been leading the market up and
down for many a month. In particular, pay close attention to
(
MSFT |
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News |
PowerRating) and
(
INTC |
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PowerRating) as they may hold the key. As of right now, both are acting poorly.
I am still finding decent action in INTERNET…but
would like to see pullbacks, BIOTECH…just
watch
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AMGN |
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PowerRating), REITs, and a smattering
of names in PHARMACEUTICALS and
GAMING…but don’t be too secure with
yourself, as there are still a ton of stocks in technically poor shape.
Nevertheless, it is an understatement for me to continue to tell you to just
take your time. The moves in the market are just too tough to play. Most of the
moves are now happening overnight…while the market hangs throughout the
trading
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