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WEEKEND NOTES

ByGary Kaltbaum
1 Comment

The move to 20,000 ran into a road block. This is normal as big numbers are tough to get through the first time visited. Just feels a little tired. We say that because the financials feel a little tired. After all, they have been acting like high beta growth stocks since the election. We say that because of the big contraction in new highs. We say that because we see a slew of names finally pulling back. Just keep in mind, pullbacks are normal. Pullbacks are way overdue. Pullbacks wipe the smiles off of faces and put doubt back into the game. Nothing wrong with it.

A few area thoughts:

Emerging markets remain very weak. If we do head lower for a bit, we expect it to be led down by this area.

Since we are asked incessantly, gold remains bearish. We see no changes.

Maybe start watching restaurant stocks as we see a few set-ups in the group.

The en fuego Russell may be losing some momo. Keep in mind, it has been a ton of small banks helping this index along.

There remains a good number of energy names that have set up just above resistance. We are on watch.

 

We will also be on watch as banks, steel, industrials pull back towards support/moving averages. We suspect they will provide another buy point.

 

 

One Comment

  1. All my indexes are setting up as shorts.
    I closed mine.

    My two secret indicators are saying this market is strong, even though breaking down.

    I, looking for a raly soon here, and into EQO. ( End of quarter.)

    Watching (xyz ) for a long trade off the 50 day.

    I’d say long into year end, we’ll see what happens in January.

    x

    China:
    China is selling UST ( us treasuries ).
    Price down, interest rate up, as…. the US fed is raising rates !

    Can anyonesay massive rally in the market on higher bank profits,from rising interest rates ?
    Fart… me neither..

    Lets talk market fall.
    As interest rates rise, the market will fall.

    Butt.. that was the old paradigm, where the market was made up of longs and shorts.
    We have a new paradigm,longs, shorts, and now, the fed.

    Q: Will the market fall ?
    A: I dunno, ask the fed, will they allow it ?

    x

    Yoda has spoken.

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