BIOTECHS continue the 2 day romp…up on average 6% this week. Biotechs with substance (sales and earnings) as well as biotechs with nothing (not only no earnings but no sales) are big to the upside. A glance at the IBB or BBH show new high ground has been taken intraday. This is both meaningful to the group but also meaningful to the NASDAQ/NDX. This whole group should be on your screen for entries once things calm down. Leave no doubt, this is a beta group which potentially augurs well for overall markets. When beta is humming, it usually is a good thing. But as of this second, it still remains a very split tape.

We suspect this move was set off by the buyout of KITE by GILD. KITE’s purchase was for $11 billion cash even though no drug has hit the market yet and the company loses a ton of money. Go figure! GILD stock (the acquirer) is also moving strongly to the upside off of this. Is this a sign of a frothy market? One can make that case but to us…JUST WATCH PRICE ACTION!


—Gary Kaltbaum- August 31, 2018—
 —Maybe it is just end of month window dressing. Of course, window dressing is illegal so it does not happen. But support levels that we outlined for you have held. Pay no attention to the Dow only being up less than 30 points yesterday. The underlying market was equivalent to the Dow being up over 200 points.—
—As the market gapped down on Tuesday morning,supposedly because of North Korea, sellers dried up, buyers stepped up and the support levels we outlined for you were defended. The market easily reversed back up. Simple as that. Again, even though the Dow has not moved much since, we have seen enough to tell us those levels will hold for now. Whether or not we get serious upside is another story. And yes, we do know September is coming up and we do know this is pre-holiday trading. Keep in mind, we remain range-bound.—
—Off of a buyout for a whopping $10 billion for a biotech company with no drugs on the market yet, biotechs were bought with a fervor. They had been dormant. A bunch of speculative names soared while a bunch of names that have strong numbers also soared. This was huge to the NASDAQ/NDX.—
—Off of decent earnings, SEMICONDUCTORS also look like they have turned back up, The SOX sits in a 12 week trading range but definitely better action. Another big help to the NASDAQ/NDX. The SEMIS have remained strong while so many other areas have been hit.—
—The TRANSPORTS also held support off of 2 strong days. They remain a laggard but the move helps and is more evidence support is holding. The TRANSPORTS have done nothing for 9 months and have under-performed but most importantly, the big support held.—
—Our favorite big growth names lit up like a pinball machine. It is always a positive when these names lead up.—
—On Tuesday, the DOW held the 50 day average to the penny. The NASDAQ/NDX are back above also. These are very important moves.—
—Now let’s see if we can go topside. So far, we are just back in range and there is still plenty not working…but definite improvement regardless of the small Dow move.—

RADIO SHOW 8/30-I turn Bernie Sanders into mulch!



Pay no attention to the Dow which is actually down a point. NASDAQ up 36…NDX up 39. AND:

BIOTECHS lighting up like a pinball machine. KITE was bought out on Monday for $10 billion even though no drugs to market yet. That is lifting the whole group. Many hitting screens today.

SEMIS up nicely. As we have told you, market has literally no chance to get smacked if SEMIS are working. The SOX is in the 12th week of a new base since it topped out June 9th. The pattern is wide and loose but could tighten up.

TRANSPORTS 2nd straight strong day after holding support yesterday. The TRANSPORTS in a 9 month range…and has rallied back into the middle of it.

Much better tone this week…but remain in very choppy action.


First off…amazing stories, pictures and video of amazing survival, rescues, generosity and downright tenacity. We repeat…the best of this country…and in plain sight. If you want to donate, the best way is through the Red Cross.

Futures up a wee bit. Good reversal yesterday as major indices defended at or near support. Transports had an important day as they have been week. You can see the 8900-9000 area remains a vital area of support.

Keep in mind a couple of things:

It is end of month window dressing time even though it is illegal and does not happen.

More than half the market aint happening thus one needs to be sector and stock specific more now than in the recent past.

Flop and chop seems the name of the game in here as lows hold but been tough to get a foothold on the upside. There is nothing wrong with sitting for a while…as long as major support is not taken out.

ADI with decent gap to upside in the SEMICONDUCTOR space. DY is gapping down.


When they gap it down on supposedly bad news and buy it up…it is good news.

When the worst areas like TRANSPORTS get defended at support, it is not bad news.

When leading growth names remain tight, it is good news.

When major support cannot be breached for major indices, that is good news.

That said, it is still a 40ish-60ish market. But gotta be happy they had a chance to do damage today and not only could not, but things were bought up. Then again, it is the end of month window dressing…which does not happen because it is illegal.

I am sure we just gap up a bit tomorrow and then sell off. (sarcasm) Expect more whippy action but we will take today as a positive.