An Ugly Start on Wall Street
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.
“The sea was angry that day my friends, like an old man trying to return soup
at a deli.”
George Costanza of Seinfeld
Yup…the seas are angry. No need to show charts. Just think New York Knicks…just
think Britney Spears’ career. That is what the market looks like and is acting
like.
Let me be clear. The 70% of the market that was already in a bear market is
now being joined by most of the rest. Simple as that…and ultimately, it is
going lower. How much? Don’t know. But I do believe popular averages have the
feel that the 20% bear market threshold will be hit. But even if they do not,
the carnage has already been plentiful. But…odds favor, there is more to go.
Do not be fooled by the normal Wall Street rhetoric where everything is ok
and everything is either a value or cheap. Bear markets take things down…and
usually go farther than expected. Just look at Countrypuke Financial…now near
$5. Yes…I will take credit for that call. Next up…CITI in the teens.
BIG BOUNCES lie ahead…any day…any moment. Bounces relieve oversold
conditions after ugly drops. I would use these bounces for any additional
selling you need to do in the many broken sectors and stocks that are out there.
My next worry is earnings. Look what happened to A T&T when they lowered
expectations yesterday. I believe there is a solid chance we are going to hear a
lot of that in the next couple of weeks during earnings season. There should be
no doubt now that a recession is at hand…and normally, earnings are going to
come down…maybe sharply. If you want to know why I know we are in recessionary
territory, not only look at the market itself…but also look at what is
starting to lead. BEVERAGES, DRUGS, HOUSEHOLD PRODUCTS, UTILITIES, TOBACCO and
all the recession resistant areas.
Lastly, I believe the word “change” should now be banished from the English
language. I have heard that word several hundred thousand times in the past few
days…and it is sickening me. These candidates are acting like we are living in
a third world country that needs to be turned upside down. Shame on every one of
them.
Gary Kaltbaum