JUST LETTING YOU KNOW
Yesterday, I said there was nothing I liked about yesterday’s action. The market was still in correction. The market was up nicely and they sold into it.
Today the opposite happened. They bought into the early selling and finished near the highs of the day. That’s good action.
Overall, the market does not have a confirmed uptrend. We have not had a follow-through day.
I love the action in the growth leaders that I have told you about on my radio show. All my growth stocks have the same characteristics:
- Great relative strength vs. the market.
- An ability to not go down while market is.
- Great earnings and revenue growth for the most part.
- Whenever the market gets some light at the end of the tunnel, they start ripping to the upside.
But again, we need to see a real confirmation that the market correction is over. The fly in the ointment today was that volume was light. I would have like to have seen bigger volume today. Volume measures conviction of the buying and selling from the Big Money Crowd.
So I’m not so sure the conviction was there today.
On some individual names, there was conviction.
The Nasdaq held the 200-day moving average. And actually, you’ve got some resistance at 2882. The 50-day moving averages looks to be at around 2950.
The Nadaq-100 looks like the Nasdaq. It needs to break above 2570. A lot of that is Apple.
The NYSE remains the weakest of the major indices. That’s below the 200-day moving average. Keep in mind that oil components are what’s holding that back.
Russell 2000 is back above the 200-day moving average. That’s good news for now.
The S&P 500 is back above the 200-day moving average and so is the DOW.
That is good news. My guess is that Wednesday put in a good low for now.
Basically, when I use that terminology, it means at least over the next couple weeks, I do not think that low gets taken out on the downside, if at all.
If something changes, I will let you know.
If we’re going to get a big move out of here, we’ll need a Follow-Through Day. Today didn’t qualify and volume was a joke.
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Gary Kaltbaum owns Kaltbaum Capital Management, LLC (“KCM”), an investment adviser registered with the U.S. Securities and Exchange Commission. The opinions expressed herein are those of Mr. Kaltbaum and may not reflect those of KCM. The information offered in this publication is general information that does not take into account the individual circumstances, financial situation or individual needs of an investor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results.