GARY PICKS APART THE MARKETS

TRANSCRIPT

GARY: Well, looks like we may just have another 5-10% correction…churn for a few days and forget the correction ever happened. This has happened 4 times previously in the past year. Just keep in mind, every rally up continues to take fewer and fewer stocks with it as well as an anemic number of yearly highs. The good news is the recent low looks like a decent low for now. Keep in mind, a break below would change a dynamic that has been going on for a while…which means a break would invite heavy selling.

That all said, ENERGY and ENERGY prices continue to head south. We gather a bounce is in order but overall, not a pretty sight.

RETAIL remains suspect with only a few names in good shape with many acting horrid.

REGIONAL BANKS…yuck…BIG BANKS…a little better but not much there as most trade below the 50 day.

The NASDAQ 100 (QQQ) remains the cream of the crop while the smaller caps (IWM,IJR) continue to woefully underperform the larger caps.

EUROPE acts poorly but is now bouncing off of a recent nasty drop. Many areas of Europe have announced they are back in recession but in QE markets, this is good news as investors recognize a bad economy means more easy money and money printing.

ASIA acts very well as the HANG SENG has really come on which means a slew of CHINESE ADRs are on the move also.

BIOTECHS are again finding a life…ignoring Mrs Bubble’s worries about over-valuation in the group. BIOTECHS have been an important cog in the wheel since the bull started.

The TRANSPORTS are back above the 50 day…quite important.

The SEMIS (SOX) still remains below the 50 day.

Most leading growth names continue to act fine. Most just pulled back or sat on light volume while market corrected. This is good to see. A few have already popped into new high ground.

All in all, there are still plenty of termites in the market as the internals continue to lag the indices but the lows have held for now with the NDX and NASDAQ leading.