Since I told you markets were starting another leg down, major indices have dropped a whopping 8-10%…and that’s just in days. So…to be clear…markets are again stretched, extended and oversold to the downside. This doesn’t mean a good bounce is coming and this just keeps heading lower…just that the conditions are now set for a bounce to come. Add in that finally, many are calling this a bear market…and maybe, possibly, in the short term, markets could bounce some. Keep in mind, this does not change the big picture…at all! It just means many names and many areas have had mini-crashes in the past few days…and it would be quite normal to bounce somewhere in here.
Lastly, I do want to make note that indeed, the selling did affect all the growth leaders as they have been crushed in the past few days as the big money crowd sells everything that has held up.
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.