A Storm Continues to Brew
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.
Found the following comments about me on a blog on the web:
“Is it me or does Gary K. look like Adolf Hitler if he was cast in Saturday
Night Fever?”
“Actually he looks like a 1970’s porn star or a motorcycle cop.”
Yup…these are my fans!
Someone is finally listening to my radio show.
A senior U.S. Securities and Exchange Commission official said on Thursday
insider trading appeared to be “rampant” among Wall Street professionals and the
agency has formed a working group to focus on it.”I believe we’re going to see
more insider trading cases,” Linda Chatman Thomsen, the SEC’s enforcement
director, told reporters on the sidelines of a securities fraud conference. “I
am disappointed in the number of cases we are seeing by people who make an
abundant livelihood in the market that they are sort of abusing by insider
trading,” Thomsen said, referring to cases already brought against professionals
this year. Insider trading “appears to be rampant” among Wall Street securities
professionals, she added.
I guess someone finally looked at the action in Hilton the day before a
buyout announcement…or that the FINANCIALS ramped the day before the FED
cut…or the buyout rumors that occur every day…it’s about time.
So…Countrypuke Financial rallies up because the CEO says things will be
better in 08. Let me get this straight :the “tanned one” sells $120 million of
stock in the last year…never says anything negative until things are REAL
BAD…is still selling as of 2 weeks ago…announces more than a $billion
loss…and now is trying to tell everyone what things are going to look like
next year. I can think of a great joke here but this is no joke…just nonsense.
I will be surprised if Stanley Oneal is still running Merrill by the time you
read this.
In the past week, the market bounced off its recent lows. More importantly,
the market closed near the highs every day. Just about every day the market was
being cheesed…and every day, the ugly was bought up. This, in spite of a few
ugly earning’s reports as well as more blow-ups in financial land. It is
normally a positive when markets close on a high note.
More importantly, I do not think anything has changed. All that happened is
that again, the good get gooder…and instead of the bad getting badder, the bad
bounced. FINANCIALS of all kinds had been melting down. They had not just become
oversold but had mini-crashes. Take a gander at the charts of INSURANCE
companies like ABK, MBI, PMI or FINANCIALS like DSL, FNM, FRE. I do not think
FINANCIALS bounced solely because of what the “tanned one” said. I think they
bounced because bungee jumps eventually bounce.
I continue to want you to overweight just a select few areas…because it is
these areas that continue to lead.
I start with COMMODITY-types which include OILS, GOLD/SILVER, STEEL,
ALUMINUM, COPPER and you can now add COAL to the list. On top of that, continue
to overweight SHIPPERS, FERTILIZER, SOLARS, MEGACAP TECHNOLOGY…but not the
SEMICONDUCTORS which are still in meltdown mode. You can also add UTILITIES to
the groups that are coming out of the bear. CHINA, HONG KONG, and BRAZIL remain
the strongest countries. Continue to overweight big cap over small cap…and
continue to stay away from almost anything FINANCIAL as this bounce will end on,
SEMICONDUTORS, LENDERS, S&Ls, REITS, BANKS, most RETAIL. Notice I am not even
talking major indices today. I could tell you how strong the NASDAQ and NDX
are…but I can also show you the NASDAQ A/D line at ALL TIME LOWS. This is not
“throw the dart” time. This is sector specific time…and until that changes, I
would not deviate as you are losing a ton of cake if you are in all the bearish
areas.
Gary Kaltbaum