Post-holiday market action

Gary Kaltbaum is an investment advisor with over 18 years experience, and a Fox News Channel Business Contributor. Gary is the author of The Investors Edge. Mr. Kaltbaum is also the host of the nationally syndicated radio show "Investors Edge" on over 50 radio stations. Gary is also editor and publisher of "Gary Kaltbaum's Trendwatch"...a weekly and monthly technical analysis research report for the institutional investor. If you would like a free trial to Gary's Daily Market Alerts click here. 888-484-8220 ext. 1.

Just a few short notes because I want to be quiet until I see what happens the next few days following the holiday.

OILS

In my past couple of reports, I talked about the rolling over of these areas. So far, these areas have made a "goal-line stand" as they held support right where they needed to. In fact, much of Friday's move was led by these areas. The OIH held right at $134...the short-term support that we outlined for you. This is the 6th time the OIH has held in the $130-134 level since January.

COMMODITIES

If you take a look at the charts of (NUE | Quote | Chart | News | PowerRating), (X | Quote | Chart | News | PowerRating), (ATI | Quote | Chart | News | PowerRating), (AL | Quote | Chart | News | PowerRating), (BHP | Quote | Chart | News | PowerRating), (TIE | Quote | Chart | News | PowerRating), and others...you will see the same. All held important support levels...in fact, vital support levels. Any break below last week's lows...and see ya.

If the COMMODITIES and OILS can get back in gear, you will have two areas of leadship that helped the market along back in the game. So far, they have just bounced off the lows...a start.

Add GOLD into the mix as it held the very important $600. SILVER is now leading GOLD by a wide margin. As long as GOLD can hold $600, things are fine there.

The market is acting just fine. The follow through day of August 15 continues to work...as the market continues to repair itself. So far, we continue to see the opposite of what we saw for three months. For three months, we could not find any buyers. Now...it feels like sellers have taken a powder.

I will have a lot more to say in coming days. As long as we see no distribution, all is cool.

Gary Kaltbaum