TRENDLINES AND SUPPORT HOLD YESTERDAY

There are times I am bullish. There are times I am bearish. There are times where I think markets are in no man’s land just being moved around by the news du jour. I think we are in one of those times. I think we could go higher here as the lower end of the wedge the market has been forming held almost to the penny yesterday. Also, I am seeing some relative strength out of the all important Semiconductors and Retail. Those two areas are vital to the health of the market. Add in the fact that major indices are still stretched away from their moving averages…and again, I think we can rally some.

When markets are in no man’s land, I simply take a step back and watch until the next big set-up shows up. The big picture still has some major issues but for now, it “feels” like the market made a big save yesterday. The problem is the past few weeks have been as tough an environment to trade as I have experienced. One cannot go home feeling secure about the next day, let alone the next hour as the intraday moves have been sudden. I do not think there have been many news-driven environments like this…and now we have to deal with Europe every other hour.  I think it is going to remain tough on a daily basis but thinking the bias for the near term is to rally back towards moving averages. Just don’t blink!

Gary Kaltbaum owns Kaltbaum Capital Management, LLC (“KCM”), an investment adviser registered with the U.S. Securities and Exchange Commission. The opinions expressed herein are those of Mr. Kaltbaum and may not reflect those of KCM. The information offered in this publication is general information that does not take into account the individual circumstances, financial situation or individual needs of an investor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results.