In Market Related News, Giants Win!
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
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888.484.8220 ext. 1.
GIANTS! GIANTS! GIANTS! GIANTS! GIANTS! GIANTS! GIANTS! GIANTS! GIANTS!
GIANTS! GIANTS! GIANTS!
I take back all the bad things I said and thought about Eli Manning during
this season. If you are a Giants fan like I am, you know how I feel right now.
Just hearing my father scream on the other side of the phone was enough for me.
How the heck did Tyree catch that ball? That was divine intervention! The other
side of this great game was that my family had season tickets for the Dolphins
the year of 17 and 0. I still remember each week of the 80,010 people at the
Orange Bowl every game that season. I gather the champagne was flowing at the
houses of Czonka, Kiick, Morris, Mandich, Griese, Shula and the rest of that
great team. Ok…I am done. GIANTS! GIANTS! GIANTS!
Hillary Clinton said Sunday she might be willing to garnish the wages of
workers who refuse to buy health insurance. Did you hear that? Government
garnish wages because government now mandates to you what you can do with your
life? This is the person you want to vote for? Why not just bring Castro or Hugo
Chavez to run the country? I know how you Clinton lovers feel about Bush…but
you had better take a step back and think about the Marxist economic policies of
this candidate. Yes…I said Marxist! $5,000 to each baby…take money away from
oil companies…surtaxes on the “privileged few.” What next?
As a follower of the Oneil principles of investing, I can understand why they
refused to call the recent strong day on heavy volume NOT a follow through day.
(A follow through day turns the market from a downtrend into a confirmed rally.)
I have seen where in the past that a 1% move was considered…then changed to
2%…then 1.7%. But there is another consideration to this important
characteristic for turning the market up…and that is the other half of the
equation…leading stocks breaking out of sound bases of decent length. The
other part of the equation is toast right now. I cannot find even a handful of
growth stocks that fits the bill. So we remain in what I call no man’s
land…where the market has been rallying but rallying all the bear market
areas….the ones I pointed out to you almost 2 weeks ago off the fed steroids.
The steroids the fed injected are simply unprecedented…1.25% in a week’s
time…even though they say there isn’t any recession. HMMM! Because of this,
everything interest-rate sensitive is on the run…well, at least they are
recovering some of their crash. HOUSING, BANKS, BROKERS, LENDERS have all got
the kick in the pants. If you have held onto these pigs, you may want to send a
thank you letter to uncle Ben.
If the current rally is a meaningful one…and is going to get legs, then we
will start to see more and more stocks set up and start to break out. I will be
glad to give it every chance. I do realize that every major index remains under
heavy resistance as well as all moving averages…so there is work to do. If
this is nothing more than a bear market rally, I expect it to start puking in
the next couple of weeks as we will start to see distribution days show up.
Sector-wise, I think you can now add the awful SEMICONDUCTORS that will join
the contratrend rally group as the group finally starts to rally off its lows
back up into declining moving averages. I think oil may also try…and add
CHINA/SHANGHAI to the list that I think can start bouncing. I also make note
that I think GOLD/SILVER are about to pull back into their rising moving
averages.
Did I tell you the Giants won the Super Bowl? And they didn’t even have to
videotape the other team!
Gary Kaltbaum