The Market Will Go Where It Wants To
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. Gary is also editor and publisher of “Gary Kaltbaum’s Trendwatch”…a
weekly and monthly technical analysis research report for the institutional
investor. If you would like a free trial to Gary’s Daily Market Alerts
click here
or call 888.484.8220 ext. 1.
FOX BUSINESS NETWORK…THE COUNTDOWN BEGINS…ONE WEEK TO GO!
I do not believe I have seen many slaps in the face bigger than when I saw Lebron James wearing a Yankee cap in Cleveland. What was this man thinking!
Al Sharpton is asking Isaiah Thomas to apologize for some of the things he
has been saying about women. I agree. But while you are at it, you may have him
and the Dolans’ apologize for destroying the franchise known as the Knicks. My
father cannot take it any more.
Washington Mutual announces a 75% drop in earnings. The stock goes up.
Merrill Lynch announces a meager $5.5 billion writeoff…at least that is
what Wall Street is calling it. When Wall Street makes money, it is a profit.
When it loses money, it is a writeoff. No…it is a loss. The stock goes up.
Citigroup says earnings will be down 60% from last year…including losses of
a meager $5.9 billion from mortgage-related trading. Citigroup announced all
this in a pre-recorded message in order to not have to answer questions. They
also moved up the day of the earning’s announcement. The stock goes up.
Bear Stearns’ earnings fall off a cliff…and is now being investigated by
the justice department. The stock goes up.
Corporate profits are expected to post a decline in the 3rd quarter for the
first time since the 2001 terror attack.
Oil prices are now above $81.
The Mets have one of the biggest collapses in baseball history.
Housing continues to implode. Lenders continue to be restrictive.
All this…and the market continues to ramp. Why? After all, the bears have
been right on housing, lending, retail…so how can the market go up?
Because it wants to. Simple as that. I have taught you that the market is its
own mechanism…and will do what it wants to do regardless of the news. In good
markets, bad news is good news. In bad markets, good news is bad news. This is
why I watch the tape…and let it decide. The market had a tepid follow through
day on August 29th and a major exclamation point on September 18th on the Fed
rate cut. They blinked…and the market went into gear…and I do not argue. At
the end of August, I was on TV saying September would be a down month. Wrong! I
actually thought the Fed would cut…the market would pop…and then sell off.
Instead, it kept going. As a decent technician, I just followed my rules and did
not fight the move. I started buying stocks the day of the follow through and
continue. The leading names I have told you about as well as the leading
groups…continue to do their thing. Until I see serious distribution, I am
going to play it for all its worth. I have no idea how far this move goes or how
long it lasts. I just know that right now, this market is acting well with
leaders on a roll. And now…time for earnings season where things will change
for many names.
The good news is that the market is broadening out a wee bit. The bad news is
that overall, this move remains narrow. Only about 50% of stocks are
participating here. Maybe the market can continue the move up in a narrow
fashion. Just be ready if things turn because of the many areas that are
lagging.
I love the OILS, SHIPPERS, FERTILIZERS, CHINA, HONG KONG, BRAZIL, INDIA,
GOLD/SILVER, INTERNET, SOLARS, METALS and MINING and the continued good list of
growth names like BIDU, RIMM, AAPL, AMZN and others. Just be wary that the best
areas are extended and overdue for some pulling back…where they can be bought.
Gary Kaltbaum