kaltbaum premarket

Market gapping up a little this morning. So…after very oversold conditions last Friday, we got a reversal…a big gap Monday and a drift up on light, holiday conditions volume. Market not on a follow through day but I am impressed with the territory covered in the past week…and next week gets us into end of month…so they can certainly keep this going.

 

I have no problem with buying some things without a follow through day. Typically, I will tell you to probe. But not interested in trading light volume like this even though the gap started the week off nicely. I am in the camp A low is in…but jury is still out that THE low is in. I do like the fact that foreign markets are stronger than ours…even Japan very strong in past week…and China much better on a relative basis.

 

If THE low is indeed in and all we had was a correction, then major indices will break back above the 200 day, leading names will break out…and there will be plenty to do. Much easier to make money on long side than short side so let’s hope that is the case…and if you are asking about how a market can withstand the negatives…first off, end of the world is not at hand…and the Fed is still printing a monumental $40 billion/month. Not sure most understand how much that is.