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The Chartman

Wall Street Due for a Pullback

NYSE, Wall Street


The market had a pretty solid week as evidenced by all the headlines announcing it was up 10 days in a row.  

Frankly, that always worries me, and it means the market is a) overbought, and b) ready for a pullback.  Of course, the latter is what’s needed to work off the froth, and if it does pull back, I’d be inclined to buy.

One stock I’d definitely look to pick up is (AMZN).  It’s been choppy, but right near support.  This is a good setup because you can buy with a fairly tight stop, making the reward high and the risk low.

Finally, if you’re looking for a clue as to the direction of stocks, look no further than General Electric (GE).  It’s poised to go up OR down right now, and there’s no way of telling which.  Look for the breakout or breakdown to diagnose the market’s overall health.

Gary B. Smith joined FOX News Channel in 1999 and is currently a regular commentator on "Bulls & Bears," including his own segment called, "The Chartman."