Read Larry Connors' blog – Short Term Trading Strategies
Gary Kaltbaum is an investment adviser 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 or call 888.484.8220 ext. 1.
The overall market has not done much since my last report but underneath the surface, I am seeing nothing but improvement. The worst areas are coming off their lows and breaking above the 50-day moving average.
(TRANSPORTS, REITS, RAILS) TECHNOLOGY continues to have a bid. RETAIL continues to have a bid. RESTAURANTS are strong. But the most important thing I am seeing is the clear lack of selling going on and the market's ability to hold above the 50-day average.
For me, it is simple. I am giving the market the benefit of the doubt as long as the major averages and world markets stay above the all important 50-day average. This moving average is bounced into as it declines in bear phases and is pulled back into as it is rising in bullish phases. Right now, it is leveling off...meaning a potential transition phase.
On top of this, COMMODITIES continue to trace out a loooong potential bottoming process that has gone on for the better part of 6 months. Just a couple of strong days will take this area above first resistance which will most definitely help the market. This includes OILS, STEEL, METALS-ORES.
In my past reports, I had stated that this rally has a better chance to stick versus all the other rallies that petered out quickly and croaked. That doesn't mean this won't follow suit. But right now patterns are better and I want to give this every chance. A move above the past week's highs will go a long way in showing the market wants higher prices...in spite of all the nausea we get to read about on a daily basis. NEW HIGHS are still on the light side but that's because of the serious damage that has been done. Leadership will take time but seeing more and more come to the forefront. Watch to see if the new high list expands to tell you everything you need to know about the market in the near term. Earnings season soon...which will dictate policy for many stocks.
Disclaimer: The opinions expressed here in are those of the writer and may not reflect those of Wunderlich Securities,Inc. or any of its affiliates. 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.
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
