THE HIGH?

-By Gary Kaltbaum- December 4, 2018-

-The hope that the rally would turn into more than a bearish market rally is now dwindling. The hope that pullbacks would be controlled and rotational just aint happening. We called A LOW last Monday and THE LOW last Wednesday off the Fed…but now think that’s it for the rally. Yesterday’s highs will be THE HIGH for now…with markets heading back to test towards THE LOW…but…something is up and it is not good!-

-As we write this, TRANSPORTS are down over 440 today…and what’s up with FEDEX and UPS? Not bullish! And why is JB Hunt (JBHT) at new yearly lows? Again…not bullish.-

-The 10 year is down to 2.92%…someone is making a certain bet. Not bullish.-

-FINANCIALS are rolling over with a few names at new lows. Have you looked at Goldman? (GS) Not bullish.-

-REGIONAL BANKS acting horribly. Not bullish.-

-MID CAPS and SMALL CAPS hardly budged in this rally off the lows. Not bullish. The RUSSELL 2000 is almost back to its lows. Not bullish.-

-The SEMIS act horrid. Not bullish.-

-RETAIL acts horrid…not bullish.-

-HOUSING gross…not bullish.-

-INVESTMENT MANAGERS near lows. Not bullish.-

-GAMING, AUTOS, DEFENSE, CRUISE LINES, DISCOUNT RETAIL, OIL, COMMODITIES, STEEL, METALS, MINING, INDUSTRIALS…all have very poor patterns, rallying into resistance and selling off badly. They continue to act bearish even though from trough to yesterday’s peak, DOW was up 1,600 points. And this all happening with knowing the Fed is now dovish and supposedly a deal will come with China. Something’s up!-