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. If you
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"You're harder to decipher then Greenspan!"
Hey thanks! That's the first time I have been remotely
compared to easy Al.
In my last report, I told you that things were very
stretched...and when things get stretched, risk picks up in the near-term. I
also went on to tell you that the last time I was thinking this way, it was end
of November/early December. The market then went through a correction of a few
weeks and a few percentage points...stopping and rallying right off the 50-day
moving average.
Well, here we go again. It is correction time...and right on
cue. Very simply, the market is now pulling back into support as well as moving
averages. This is normal. The question remains on whether it turns into
something more than a correction...but only time will tell. That said,
reactions to earnings will dictate policy for many stocks. The playing field
will change and you need to stay on top of the reactions as the numbers come
out.
As I am writing this, (YHOO | Quote | Chart | News | PowerRating) and (INTC | Quote | Chart | News | PowerRating) have blown
up, the futures are down 10 points and Japan is down over 900 points in the past
2 days. Are we having fun yet? Just keep in mind, the market moves over the past
couple of years have been feast or famine...with very little in-between. Until
we all start to see better reactions to earnings and with markets stretched, I
am taking three steps back.
Sectors of note-
OILS are still in fine shape. There are just too many names
that are extended. the bigger caps are now coming up the right side and deserve
a look.
GOLD is toooo extended. Stay away until they pull back.
AIRLINES have topped badly as many are already breaking moving
averages.
I do not want to say too much more as I want to see if the
market can show some grapefruits from the early bludgeoning it is going to get
on the open. More to come!
Gary
