04/04/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST
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https://archives.warpradio.com/btr/InvestorsEdge/040418.mp3
JUST LETTING YOU KNOW
A blah day in the market today. Started off bad. Ended up bad. But I must say…it could have been a lot worse.
Today was a distribution day on the Nasdaq. Again, as I have been telling you, I wouldn’t go anywhere near anything resembling a commodity stock. They are in a bearish phase and are completely underperforming the market by huge amounts. And every time we go down, they continue to lead down. What happened today is that a few more things started to join the commodities front, but not in a bad way.
Growth stocks still look fine. In fact, a few of them that were down early, stiffened up by the end of the day. We better hope they don’t come in.
There’s a three important areas I have to talk about today.
The Three Big Stars
As you know, if you’ve listen to my radio show or read my articles, I put a big, BIG star next to those sectors because they are important leaders of the market. The third star is…”How are Growth stocks doing?”
Semiconductors
As it breaks below the 50-day moving average today, I go underneath the surface and look at names like Applied Materials (AMAT) is breaking down now. Texas Instruments (TXN) broke below the 50-day. Analog Devices broke below the 50-day. Altera (ALTR) is rolling over. Xilinx broke below the 50-day.
If that continues, we really have to be on guard because the Semiconductors have been a really good harbinger.
Financials
The XLF hasp which has resistance at 16 and the IYF has resistance at about 59.25, have in the past 2 ½ to 3 weeks shown an inability to get above it. And today was a little bit of a rough day. They didn’t break down. But they started pulling off of those resistance levels.
If those areas can’t break through to the upside, that’ll be another head wind for the market.
Growth Stocks
Growth stocks will tend to cut through and also outperform both good and bad markets. So far, I have seen very little damage (if any at all) in Leading Growth Stock land. I am seeing some pulling in. I am seeing some distribution. But I’ve yet to anything break down in a meaningful fashion in my universe of growth names.
I have yet to see any major tops in Growth Stock Land.
If we start to see that, we’ll talk a little more.
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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.