Financials Could Be In Some Trouble Here
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
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The BROKERS have rolled over and badly. Readers
of this report know how much emphasis I put on this group as a proxy for the
market. Bulls will say it is an overdue correction. Bears will say it will augur
in a period of weakness. All I know is that the last time BROKERS acted like
this, it was late April of 06. Just one example…MER…breaking support and
moving averages here…just like it did last April 28th. LEH, BSC, MS and others
are going along for the ride.
LENDERS and other FINANCIALS now getting creamed.
Names like C, BAC, WM, CFC, ACF and others now under pressure. Keep in mind,
FINANCIALS are also a great proxy…so this is worrisome. I still remember
Greenspan and the Fed saying not to worry about the subprime market.
I believe it is a negative that the TRANSPORTS were able to drop over 120 points
yesterday. I know…it is just one day…but I still make note of it.
I do not like that past leaders like GOOG, LVS, WYNN, MA, NYX and others are
under distribution.
And lastly…and this is the big one…every major index look exactly like they
did in late April of last year. The DOW and S&P were extended. The TRANSPORTS
were extended. The COMMODITIES had just gone parabolic. The NASDAQ and NDX were
lagging. I am on serious watch now…serious watch. That means if major indices
break support and or moving averages, I will be of the belief a top of unknown
price and duration will be in.
You should take this time to compare major indices today to last April. It is
uncanny. Add in the overwhelming fact that no one is used to a correction. Add
in that everyone is leaning bullish. Add in a Fed that continues to say we live
in a perfect world. Add in the fact the WORLD MARKETS are ridiculously above
moving averages and due for a sharp correction…and it may be time to take out
the umbrellas. You will know if support is broke at DOW 12536 and then
12431…S&P 1431 and then 1416. If these support levels hold…well…not sure
they hold at this point but will be watching.
Gary Kaltbaum