Why January Is More Important

  • December 23, 2002
  • Gary Kaltbaum



Received lots of good feedback from my

last report. If you are not doing the exercise now, please just
try it out. I promise you it will make a world of difference in your life.

After a three-week drop, there is a chance that Santa will appear this week. I
say this for several reasons. First off, the market did drop sharply for three
weeks. Markets do not go up or drop in a straight line. Secondly, markets are
oversold, and thirdly, this week is a seasonally positive week.

My issue is not about this week and into the end of the year. My issue is about
January. I just don’t believe that as it stands, the market’s intermediate-term
rally which ended three weeks ago…will be bettered any time soon.

Here is some evidence:


Nevertheless, you may
want to go slow in the next few days due to thin trading. But if at any time,
regardless of all the noise, the S&P 500 breaks 872 accompanied by  a break of
the DOW at 8300 and a NASDAQ 1320, then what has been a tough few weeks could
possibly get downright ugly for the longs…possibly taking the market down to
the July and October lows. I say this because there is just no underlying
support underneath these levels. You must take a look at the fact that the
market made another “V” off of the October lows. There was an absence of base
building. There have been several “V'” formations in the past 33 months. All
have failed.

My staff and I want to wish you a wonderful holiday season and the happiest and
healthiest of New Year’s.