kaltbaum premarket

A bunch to cover.

 

Officially, IBD has market still in CORRECTION. I am not treating the market that way for several reasons. First off, we can play off of yesterday. Simply put, if the lows of the last week are breached, that would probably take us out. But during the correction, KORS didn’t budge…and now it is breaking out again. During the correction, financials only pulled back…and now, names like BAC are breaking out. During the correction, some lower beta names just sat and are now moving out. So…I am thinking…let the market take me out by breaking the recent lows and turning down areas like the financials.

 

The problem is that growth aint happening. In past weeks, aapl,alxn,amzn,biib,crus,eqix,goog,lnkd,mlnx,swi,

shw,ulta,ua and wfm all broke…leaving just a few names left. That’s the conundrum and that’s the reason why I told you yesterday to just buy the market.

 

The employment number last month was indeed fake. Today’s number goes back to 7.9%…just under 8%. Did you believe they would let it back above 8%. Our govt is led by corrupt people…but futures are up…in extension to yesterday…as financials lead up and commodities do better.

 

Before the open yesterday, GDX looked to be in play but then saw something that easily took me off of it before playing. ABX was breaking down off of earnings…with others following the lead. On top of that, GLD was wedging up so it was a gimmee not to play the GDX. GLD is now down decently this morning breaking off a wedge…so nothing to do with this area.

 

This morning:

 

EQIX up $8…but still below the 50 day…and they actually missed by a penny.

PCLN up about 11% as they beat handily but they beat lowered numbers and their numbers continued to decelerate.

LNKD gapping up again into the middle of a looooong base.

SBUX gapping up also but nothing there.

 

There are a bunch of gaps to the downside in names like FLR,MELI,VRTX,RL and a few others.

 

 

The service owns KORS and whichever ETF you bought yesterday to mirror the market.

 

The two best looking charts are KORS…which the service owns with a cost of about $49 and BAC…but BAC opening up about 2.5%. I think you can take an initial position in BAC…as FINANCIALS are strong again…and then see if it pulls back to add or we have to add as it moves higher.

 

We are now into November where markets could get seasonal strength. Of course, the election can change things but we deal with what is in front of us today. I am in hopes that further strength brings out more names and in hopes the correction is over.