JUST LETTING YOU KNOW…
I think we are in a corrective phase, for unknown price and time…for areas of the market. Doesn’t have to be the Dow. But we have areas that have issues.
New highs are contracting. There’s some distribution in there. And there’s areas that I would avoid – ADDING ONE TODAY…there are a lot of names in that area that are rolling over.
I wouldn’t sweat it very much yet. We 197 sectors and not everything moves at once and you will have bull and bear markets sitting side by side in differing sectors. But overall today, I give it a win – when Dow is down 90 and finishes down 15, that’s a win. When the S&P was down at one point 11 and finishes down 5, that’s a win.
Areas to Avoid:
- Look at XME, the Metals and Mining ETF – Wow! Just completely rolling over.
- Look at the KOL, that Coal. Completely rolling over.
- Look at the SLX, that’s steel. That’s rolling over too.
I don’t like the action in Gold and Silver, especially Silver. I just think last week’s sell that was not Aunt Mary and Uncle Bob — could be meaningful.
NOW…we gotta talk about oil.
- Go look the OIH. This is just a short-term thought. It couldn’t get above resistance and appears to be doing a little rolling over here.
- Go look at the XOP. Maybe…
- The XLE, that’s bigger oil – that held better today because they were buying up the EXXON and Chevron kinda reversed.
Now there’s another area that has to be watched.
Go look at the SOX today. Any technician worth his right mind does not like today’s action since you took out the entire move since February 2nd .
Just want to let you know…not a good thing to see the Semis doing what they’re doing here. Let’s hope it turns back around to the upside.
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Gary Kaltbaum owns Kaltbaum Capital Management, LLC (“KCM”), an investment adviser registered with the U.S. Securities and Exchange Commission. The opinions expressed herein are those of Mr. Kaltbaum and may not reflect those of KCM. The information offered in this publication is general information that does not take into account the individual circumstances, financial situation or individual needs of an investor. 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.