My strategy guide for 2006
Gary Kaltbaum is an investment advisor with
over 18 years experience, and a Fox News Channel Business Contributor. Gary
is the author of
>The Investors Edge. Mr. Kaltbaum is also the host of the nationally
syndicated radio show “Investors Edge” on over 50 radio stations. If you
would like a free trial to Gary’s Daily Market Alerts
Wow…for a holiday week, received lots of nasty emails on my
market thoughts. It’s amazing how upset some people get when you are not wildly
bullish. I actually had to do a double take on my reports. The way the emails
were written, you would have thought I predicted the Apocalypse. Here is what I
did not say.
I did not say we are headed for a crash. I did not say we are
headed for a bear market. I did not say we are headed for much lower prices. I
did not say the end of the world is coming. All I said was that I am seeing the
conditions that in the past, have led to lower prices…but in order for that to
occur, support must be broken…and that hasn’t even occurred. If it does, we
will deal with it. That’s all. How anyone extrapolated anything else out of my
writings…I just don’t get.
As we end 05 and enter 06, there are a few things I want to
point out.
As of this second, I like the way the OILS are setting up
again. I have been in the camp that the recent drop in OIL PRICES was a normal
correction and another leg up was in the cards. We shall see. OIL STOCKS are now
building new bases here and will watch for breakouts and quality pullbacks. I am
seeing many names pull back into moving averages and holding. Probably not the
worst thing in the world to probe off of this moving average.
As of this second, GOLD is strong…and looks to me there is
more to go. GOLD STOCKS are actually outperforming the metal for the first time
in a while…which is normally a bullish occurrence.
In spite of the ugly action in
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PowerRating) and
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starting to see some decent set ups in the RETAIL area. There has been a lot of
noise about RETAIL during the holidays. I only care about what the stocks are
doing…and now starting to see a few decent bases form.
The Yield curve… Are we nauseated yet talking about the
inverted yield curve? Here is the deal. In the past, there have been times where
an inverted yield curve forecasted an economic slowdown and on occasion…a
recession. Let me be clear. If you just follow the yield curve to make your
decisions, you are in trouble. Watch the action in stocks. The market is the
greatest forecaster of economic growth going forward. If the market craps out,
then we can talk.
The market topped out the first day of 05. I have no clue what
happens the first week of the new year but I am of the belief January will see
some serious action one way or another. Stay on your toes.
Lastly, this is what Tony Dungy said at his son’s funeral this
week:
“Parents, hug your kids every chance you get. Tell them you love them every
chance you get because you don’t know when it’s going to be the last time.”
I end my radio show every day with “go home and hug your
children.” I started saying this many years ago…the day of the Columbine
incident. I can’t think of more important words.
I wish everyone a safe and happy New Year…and to our
military…God bless and come home soon.
Gary