Trading Setups
Just a small note that the Greek elections are June 17th…not sure what it will mean. It is amazing that many believe the answer is more debt and government spending. This is what is believed here. I dont know when we got to that point but it is sickening to watch. The answer is the opposite. The politicians try to use the word austerity but it isnt. It is just spending what you are taking in…like any normal person would do.
Markets remain in correction. I will start with the good news.
The good news is that there is a little positive divergence as the nasdaq holding up a little better than the dow…which is always a good thing. Not sure if this lasts. The good news is everyone…well almost everyone is bearish. Of course, they were all bullish a few weeks ago. The good news is that major indices have been holding recent lows…but then the bad news. The bad news is that so far, the bounce off the recent lows is a joke…anemic is the word. The bad news is that a ton of stuff has broken down. The bad news is that foreign markets are worse. The bad news is that there is really nothing to buy. So…
here are my leaders…
alxn,amzn,bbby,biib,crus,cern,
Of those names, alxn, dltr, ua and v just got back above the 50 day…and as long as they stay above, I am fine…as they build bases. Of that list, best names are expe,ebay,gnc,mnst, shw,swi.
aapl,cmg,isrg and pcln are the strength from the last move but all are below…but starting to base. There is nothing wrong with a past leader basing below the 50…in fact, it is quite normal…but nothing to think about as they cant go higher until they are back above.
Also, housing remains my favorite group…and defensive issues like abt,cl,df,ecl,hsy,kmb,
ko,kft,t and vz continue to be strong…which is really not good news.
I am still sitting. Shorting will come on any further anemic bounce or if major indices break down out of the past couple of weeks. Also, we have to always worry about the maniacal Bernanke when shorting as he can unleash is fake arsenal at any time to prop up markets.
Other than that, I am quite happy to sit out the nausea after making good cheese off the last up move. It is vital to be patient and let the market run its course.
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.