Sitting Tight…But Don’t Ask Where! 4-17-06
Good Evening
The market continues to put some fright into the hearts of the bulls as many of them took a few hits today, Kcap included. When the Nazz breached the 2332 level and started pulling back, it sparked nervous selling and the bids started evaporating. Although the market was rather ugly today, the total volume was light and the advance/decline was not too negative. The market even started a small recovery in the final hour. Importantly, the NDX closed over 1690 despite a small breach of that important support level intraday. All in all it was another classic Nervous Nelly shakeout that continues to churn the stomachs of every Bull in the land. All of this churning will surely lead to greener pastures as huge amounts of fertilizer are being created nationwide!
Technically speaking the market is still in fine shape and holding near impressive levels. The sell off in front of earnings is a welcome sight and should relieve some of the “sell the news” pressure as earnings are delivered over the next few weeks. We continue to believe that the next major move in the markets will be to the upside for those who have the patience and fortitude to stay the course. We recognize that this is easier said than done, however we take comfort in knowing that the Bear arguments are screaming and well defined, which is providing the best wall of worry that we have seen in quite a while.
We acknowledge that Bull markets are often more enjoyable when corporate earnings are blasting off and the macro environment is tamer than the present situation. In those environments multiples expand and the sky seems to be the limit. In the “wall of worry” environment (which is the present situation) the market climbs despite everyone’s fears that the end is just around the corner. The latter is more difficult to make money in due to the fact that getting shaken out is a constant threat.
If You Held a Taser To Our Head:
The Optical Space as well as the Semiconductors will provide the strongest fundamentals to carry the market higher especially when the happy sentiment returns to the market. Once the macro environment improves i.e. Iran and Commodity Prices, the market should find its footing assuming no major support levels are breached on a closing basis. For now it’s steady as she goes thanks largely to our experience and our good friends who manufacture Imodium AD.
We’ll be back again on Wednesday. ___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (âKTBâ) are for informational purposes only and should not be relied upon in making investment decisions. By using this site you agree that Kleiner Capital Management, LLC (âKCAPâ) and its principals are not liable for any action you take or any decision you make in reliance on any content. Please be aware that there is no commitment by KCAP to update the KTB. Furthermore, there may be inconsistent timing and follow up (if any) of posts.
None of the information on KTB is considered individualized investment advice and should not be construed as a recommendation or solicitation to purchase any securities. Reliance on information provided on KTB in no way establishes an advisor-client relationship. Investors are encouraged to seek the advice of a qualified investment professional prior to investing funds.
Clients of KCAP, as well as the firmâs principals and other employees, may be invested in securities discussed at KTB. However, any mention of said securities is not intended to influence market conditions for the security to the benefit of KCAP clients and/or principals and employees. KCAP is not affiliated with any advertisers on this site and does not endorse any of their content. For additional information and disclosures, please visit www.kleinercapital.com.
The information on KTB has been furnished from sources we consider to be reliable, but no guarantee is made with respect to accuracy.
___________________________
The market continues to put some fright into the hearts of the bulls as many of them took a few hits today, Kcap included. When the Nazz breached the 2332 level and started pulling back, it sparked nervous selling and the bids started evaporating. Although the market was rather ugly today, the total volume was light and the advance/decline was not too negative. The market even started a small recovery in the final hour. Importantly, the NDX closed over 1690 despite a small breach of that important support level intraday. All in all it was another classic Nervous Nelly shakeout that continues to churn the stomachs of every Bull in the land. All of this churning will surely lead to greener pastures as huge amounts of fertilizer are being created nationwide!
Technically speaking the market is still in fine shape and holding near impressive levels. The sell off in front of earnings is a welcome sight and should relieve some of the “sell the news” pressure as earnings are delivered over the next few weeks. We continue to believe that the next major move in the markets will be to the upside for those who have the patience and fortitude to stay the course. We recognize that this is easier said than done, however we take comfort in knowing that the Bear arguments are screaming and well defined, which is providing the best wall of worry that we have seen in quite a while.
We acknowledge that Bull markets are often more enjoyable when corporate earnings are blasting off and the macro environment is tamer than the present situation. In those environments multiples expand and the sky seems to be the limit. In the “wall of worry” environment (which is the present situation) the market climbs despite everyone’s fears that the end is just around the corner. The latter is more difficult to make money in due to the fact that getting shaken out is a constant threat.
If You Held a Taser To Our Head:
The Optical Space as well as the Semiconductors will provide the strongest fundamentals to carry the market higher especially when the happy sentiment returns to the market. Once the macro environment improves i.e. Iran and Commodity Prices, the market should find its footing assuming no major support levels are breached on a closing basis. For now it’s steady as she goes thanks largely to our experience and our good friends who manufacture Imodium AD.
We’ll be back again on Wednesday. ___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (âKTBâ) are for informational purposes only and should not be relied upon in making investment decisions. By using this site you agree that Kleiner Capital Management, LLC (âKCAPâ) and its principals are not liable for any action you take or any decision you make in reliance on any content. Please be aware that there is no commitment by KCAP to update the KTB. Furthermore, there may be inconsistent timing and follow up (if any) of posts.
None of the information on KTB is considered individualized investment advice and should not be construed as a recommendation or solicitation to purchase any securities. Reliance on information provided on KTB in no way establishes an advisor-client relationship. Investors are encouraged to seek the advice of a qualified investment professional prior to investing funds.
Clients of KCAP, as well as the firmâs principals and other employees, may be invested in securities discussed at KTB. However, any mention of said securities is not intended to influence market conditions for the security to the benefit of KCAP clients and/or principals and employees. KCAP is not affiliated with any advertisers on this site and does not endorse any of their content. For additional information and disclosures, please visit www.kleinercapital.com.
The information on KTB has been furnished from sources we consider to be reliable, but no guarantee is made with respect to accuracy.
___________________________
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posted by Kleiner Capital Management, LLC. | 6:21 PM
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