Delusional
Gary Kaltbaum is an investment adviser 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.
Citigroup chief Vikram Pandit says that “rumor mongering is at the heart of their problems”; Pandit wants to keep the company together and they will not spin off Smith Barney. It also states that Pandit has reiterated that “Citigroup’s capital position is strong.”
I just read that. The only word that comes to mind is DELUSIONAL. CITI is actually blaming rumors and short sellers – and not the fact they have hid losses for a year – CITI stock has dropped from $57 to $3.70 as I write this, and that is all these people have to say. CITI was at $14.71 just 12 days ago. Remember what I have told you…IT IS THE MARKET’S OPINION THAT COUNTS…AND MR. MARKET IS SPEAKING LOUDLY!
I cannot believe how stupid corporate America is. Amazingly, I am now also watching JP Morgan crash…down over 50% in those same 12 days. ;Every other major bank has been crumbling.
Markets have now broken recent support, but be careful. I have seen many times a break, and a move back up. Also, the DOW just came down 2100 points in 12 days. But the fact remains, when I scanned my usual 2500 stocks last night, it was as bad as I have ever seen…and I have studied them all.
I now want you to focus on a couple of items that no one is focusing on. Therein lies the edge. Start watching the DOLLAR and GOLD. The DOLLAR has soared recently in a “flight to quality” orgy. I am not sure this can last. GOLD is now starting to outperform the DOLLAR…so I am watching for the GLD to move above the levels it is sitting at now.
Get a chart of GLD and you will see it is trying to come up the right side of its recent range. Typically, I would tell you markets would rally if the DOLLAR weakens…which has been the case in recent months…but not sure. I would guess all commodities would get a lift if the DOLLAR dropped, as they are massively stretched and extended to the downside…which will help the indices but markets need the financials…and this second, financials cannot find a friend.
If I do any buying, it will most likely be in the COMMODITY areas…but not ready yet. Need more evidence…but starting to see the start of the action I need in COMMODITY areas.
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