JUST LETTING YOU KNOW
The Market Continues to Act Quite Poorly
To recap, the Nasdaq broke the 10-week/50-day moving average.
Dow and S&P which held up better, pulled back in to the 50-day moving average. We got a rally. But the Nasdaq only rallied up into it and failed. The Dow and S&P rallied up into the highs and failed as there was a huge negative divergence up there between new highs and price, amongst other things. Now the Dow and S&P have given way.
More and more stocks…and more and more sectors are breaking down. And if you watched me on Fox Business Network yesterday, I simply stated something is not right when we have the massive amount of blow-ups in individual stocks that we are seeing.
And it’s funny because my buddy at Hornstein who I’ve had on my show, out of nowhere, contacted me today and said, “Let me be crystal clear, you don’t get this many blow-ups from leading stocks and regular stocks if the market was just correcting.
Well, he may be right.
A lot more blow-up in today’s market. A lot more companies guiding lower going forward.
Now, we’re not out of earnings season yet and tomorrow after the close, two stocks will have an effect on the Nasdaq, both Apple and Amazon.
Beats the heck out of me what each are going to say, what they’re going to report and how the stock is going to react.
All I know is that now they are both under serious pressure, as well the whole host of things.
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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.