Chart courtesy of StockCharts.com
JUST LETTING YOU KNOW…
More of the same.
- Crash into early August, then hit a low where market rallied up 10% in six days.
- We then dropped about 7% in 3 days.
- We then rallied up about 9% in 7 days.
- And then in 2 days we dropped about 8%.
- In 2 days we rallied up 5.5%.
- And then next 2 days we dropped 6%.
- And the next 5 days we rallied up…7%.
- And the next 3 days we dropped about 9%.
- Next, we rallied up about 7%.
- The next 4 days we dropped about 10%…Culminating with the wash out on Oct 4.
- And then in 5 days we rallied up 11%.
- Sat around…had two big gaps into the highs of late August and then we did two big gaps down.
- A little rally up.
- Another big day down.
- Within a day, a gap up. Then another big drop.
- Went down about about 9% in seven days.
- And this week on two days that gapped up, a total of about 640 points.
- We finished with a rally this week of 8% and this one was for the books because …you couldn’t get in because they were gaps.
And where does that leave us?
MAJOR AVERAGES ARE IN THE MIDST OF NEAR-TERM RESISTANCE UNDERNEATH MASSIVE RESISTANCE THAT WAS MADE AROUND MARCH TO JULY PERIOD.
Since July 1st the Nasdaq has had 16 days where it was up 2% or more. Some of the days it was up 4%.
So on those 16 days, the Nasdaq was up about cumulatively 40%. And the Nasdaq’s still down about 6% or 7% which tells you how wild the swings have been. …In this very, very, very, very, very tough environment…up or down.
Next week — We’re into resistance. We gapped up twice and we’re already overbought. As I’ve been telling you for weeks now, there’s no way to put your thumb on this. And anybody telling you they can is lying. We’ll see what happens.
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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.