The “another life preserver for Greece” has markets feeling it. The EURO is strong which means the DOLLAR is smoked. This has markets juiced as the weak dollar/strong markets correlation continues. Overall, major indices remain in the same multi-month trading range I have been talking about but now, technically, the major averages have a chance to move out of range. Let me remind you that a breakout for major indices above old highs off of a long trading range is huge. A technician could not ask for more. Do not argue with it. I know the news stinks. I know unemployment is high. I know housing remains in a depression. I know Washington continues to destroy the future. I follow markets. They have been known to go against the least possible expectation. I did want to also add that for the first time in a while, financials actually have a bid as again, they get a life preserver when Greece gets one. I still don’t trust a word that comes out of their mouth but have to recognize, they do have an impact on the market. There may just be another leg up for this market…but don’t blink. Important resistance lies at 12753 and then 12876 for the Dow, 1356 and then 1370 for the S&P, 2879 and then 2887 for the NASDAQ and 2819 for the NDX…which is very close right here. Just remember, resistance must be taken out.
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.