kaltbaum weekend

“The DOW finished below the 50 and 200 day.

The S&P finished below the 50 day but above the 200 day.

The NASDAQ/NDX finished below both.

The RUSSELL remains above both showing some relative strength in the small caps.

The NYSE remains above both.

 

 

THAT ALL SAID: We are held hostage here until the corrupt assclowns in Washington come up with another fake deal to save the day. If something happens over the weekend, expect market to gap up. Keep in mind, it is a guarantee that eventually something gets done…and for whatever stupid reason, the market will react well to it. I just do not know when something gets announced.”

 

 

Well…the market was just sitting in the weeds because over 2 days, first Monday and then the big gap Wednesday:

 

 

The NYSE broke out…the RUSSELL broke out…the MIDCAPS broke out…the SMALL CAPS broke out…the FINANCIALS broke out…TRANSPORTS break out…the NEW HIGH LIST has expanded markedly because of all this…and lastly, foreign markets are smoking as they are all now printing money.

 

 

The S&P is close to new highs…the DOW less so because of a few names…the NASDAQ and NASDAQ 100 lag as AAPL doing the opposite of what it did in the first months of 2012.

 

 

My only thought is that when major indices break out above bases that formed over almost 2 years, it is very bullish. I do no sweat Dow lagging and do not sweat Nasdaq and NDX are lagging because of a few important big names.

 

 

So I told you to buy market proxy again and told you EBAY and MA buyable…and we just need more. I am already reading about doubters to this move because it is fed induced or the economy sucks or employment is bad and deficits are high. Well they are right on all fronts…but I have news for them…most of the move since March 09 has been fed induced and now, Japan printing, Europe printing, China massively easing…and of course, we are printing an unprecedented $1 trillion/year…and we are not even in recession. The bottom line is that central banks are trying to create an asset bubble and with no accountability as to how much, they are going to print and print and print…and I wont fight it. I see it in the crappy earnings and sales for companies but money printing is money printing.

 

 

 

SHORT TERM…the market is beyond is beyond overbought and is beyond stretched on a near term basis…but with so many stocks, sectors and countries doing the job, not so sure they can pull this in much. Of course, unless Washington does something even more stupid. So the goal here is to keep adding until we see distribution but must tell you, a lot of charts have turned. Before I go further, here is the growth list:

 

 

 

 

 

 

 

ULTA- Downgraded Friday and needs to hold 50 day.

 

I am adding to this list CVLT,DDD,SSYS but they are not buyable..and frankly, very extended. The purpose to put on list is to be watching for potential secondary buy points.

 

I am also expanding out as seeing too much strength in non-growth to ignore. You have autos,airlines,banks,

money mgmt,oils and all kinds of stuff on the move. Am amazed to watch stuff that have down earnings and flat sales on the move but that’s what you get with trillions of bucks chasing assets. Even doughnuts like KKD having powerful moves.

 

Chart the weeklies…not the dailys right now…massive weekly break-out in so many things but so many things also extended in near term because of that freakin gap. I hate freakin gaps…especially off stupid announcements…but it is what it is.

 

Right here…tough to play after that gap but no issues with probing back into CRM here…and will probably use a break of the 21 day…not the 50 day if it comes in.

 

I like the base LNKD is putting in but only buy if it breaks above $117.32.

 

Lastly, in coming weeks, there is a chance I am merging this report with someone else’s that covers all areas of the market and has a great track record. It is not a done deal yet and there will be no additional costs.