If I was to write to you earlier this morning, I would have told you that AGAIN, market needed to put in a goal line stand as many major indices were again sitting on the longer-term 200 day moving average as Friday was putrid. I would have told you that odds favored that eventually the break would occur. But I would have told you again that we are now into the end of quarter window dressing period (that does not occur) in which markets rarely go down…and are very often popped up. As of this writing, that’s exactly what is occurring…another hold at the 200 day average. Since I have mostly a bear the past 5-6 weeks, I don’t mind mentioning the bull case. For the bull case, a continuous hold enables the market to have a chance to rally from here. For the bull case, today is another strong day for my favorite growth leaders. (AMAZON, CHIPOTLE, FOSSIL, GREEN MOUNTAIN COFFEE, LULULEMON, NETFLIX continue to come to mind.) Bottom line…and I admit this will sound amateurish…if the 200 day holds…potentially good. If it doesn’t, look out. Today, it holds again.
On another note: my thoughts of GOLD putting in a double top coming to fruition as GOLD cleanly broke the 50 day last week on volume.
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.