07/13/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST
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https://archives.warpradio.com/btr/InvestorsEdge/071318.mp3
JUST LETTING YOU KNOW
On Wednesday, I said to you on this show, that the worst areas were actually setting up decently here to move higher in the short-term (not the long-term because you never know). I mentioned to you the financials and the oils.
And, of course, yesterday they gapped them down and then reversed them. But they still kept them in that good pattern. Remember that things can’t go up or down unless they’re set up to go up or down.
The oils and financials have been in a bear market. But recently, the market has acted better and it’s been rallying up a little bit. And then we six down days in a row. But that enabled certain things to pullback.
If you look at a watch or a clock…11 o’clock down to 5 o’clock…a move that way, after a move up, not breaking the lows…we call that a bullish wedge. And does not mean that, it has to break to the upside off that wedge.
You never know.
And you never know what the catalyst is going to be, though we knew we were entering into earnings season.
Today, the Financials and the Oils…both made that move off the bullish wedge. Those two areas are 40% of the S&P. Thus the market had a pretty decent day, albeit volume was a joke.
When you have a chance, go look at what we look at. And remember, we’re just talking about the short-term. The Oils and the Financials are not in a bull market, but they’re in a recovery market. We’re better off the lows here, but they have more work to do.
But this is the type of action that improves the market. Look at the XLF. It went up and then pulled back on the declining 50-day moving average and then popped off it into the upside.
Rumour!
There was a rumour that the European Central Banks were buying Euros today. Thus, the Euro had a better day. That means that all the multinationals tied to the dollar had a good rally. When the dollar is weaker, they rally. Remember that I told you on my radio show that IBM was tied most? It was up 3 today which was worth around 28 Dow points. And a bunch of others lifted also.
So a good day in the market today. I don’t have anything bad to say, except that volume was an absolute joke. And I would like to say that it’s a Friday during the summer. Well, three days were during the summer and volume was a lot heavier. That’s the only thing that throws a little water on today the action today. But as for all the major indices:
- The Nasdaq went a little below the 50-day moving average yesterday and got back above it today.
- The Nasdaq-100 got a little back above the 50-day today.
- The NYSE held…and by the way there a lot of oils in the NYSE.
- The Russell 2000 held.
- The Dow held and got above the 50-day.
- And the S&P 500 did the same.
That’s good news near-term, walking into a massive amount of earnings reports next week.
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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.