Read Larry Connors' blog – Short Term Trading Strategies
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 or call 888.484.8220 ext. 1.
I will repeat a line I have been saying for weeks: UNTIL MAJOR
INDICES BREAK SUPPORT AND OR MOVING AVERAGES, THE MARKET GETS THE BENEFIT OF THE
DOUBT. I am stating this again because I have seen many turn bearish in the past
week over the recent distribution that has occurred in the NASDAQ/NDX. I do not
disagree one bit with the fact that the NASDAQ and the NDX have been under
pressure. I do not argue with the distribution days. I just argue with
everything else.
The DOW, S&P have inched out to new highs. These two major indices have not even
been tempted to correct. But now...and more importantly:
The RUSSELL 2000 breaks out to new highs.
Charts courtesy of StockCharts.com
The MIDCAP 400 breaks out to new highs.
Charts courtesy of StockCharts.com
The SMALLCAP 600 breaks out to new highs.
Charts courtesy of StockCharts.com
You want more, the INDUSTRIAL SECTOR has broken out.
The TRANSPORTS have broken out and have skyrocketed the past 2 days.
Charts courtesy of StockCharts.com
In the past week, STEEL has gone nuts to the upside...ALUMINUM has followed suit...other COMMODITIES ditto.
In the past couple of days, anything to do with CONSTRUCTION, CONSTRUCTION PRODUCTS, TRUCKING, RAILS, HOTELS have lit up like a pinball machine. My previous thesis that the market is forecasting a stronger economy is on cue. These areas would not be lighting up if the economy was not accelerating. The market is the best forecaster...not someone's opinion.
I know the NASDAQ and NASDAQ 100 had failed breakouts. I also
know that leading names like AAPL, GOOG and a few others have topped. I know the
SOX continue to lag as badly as could be. I am just letting you know that other
areas are now front and center. ..and while I said in my last report that I was
seeing action indicating some of these areas were perking up, I in no way
believed we would see such a huge pop in stocks like MHK, MAS, X, JCI, CMI, CLF,
PKX, PCU and others....a big wow!
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