It is early but so far, today is the first time I have seen strong growth stock action in weeks…and it came right at an important juncture. As you know, I thought many weeks ago that the market was going to correct. So far, it has been nominal measured by the indices, almost 10%. The near-term good news is that a few important major indices have been sitting on longer-term support…and notwithstanding the mother of all reversals today, those support levels are holding. Just one glance at the NASDAQ will show vital support going back to March at 2603. Also, the RUSSELL and the S&P held the 200 day moving average in recent days. Are we off to the races? Quite unlikely. Loads of resistance ahead. But I am just happy to see important growth names bid up and shorts having to cover. Now we need to see a follow through day to get a potential trend change. No matter what, as I have stated for months, it ain’t going to be easy.
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.