It Was a Great 233 Years
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.
I will get into the better action this week in a second. I would rather talk about your ever-shrinking wallet. You see, since this administration took over, I have been yapping on TV, yapping on radio and yapping in these reports that this leadership was going to come after your money. I have stated that this leadership has a socialistic and central planning bent. I have stated that the mainstream media refused to investigate the past of this leadership and gave all a pass while skewering a Governor of Alaska.
I have told everyone that ultimately, this leadership could not hide their true selves and will be proven to be liars of the highest order on who they are and what their intentions were. The fact is they just don’t like you…but they love your money. They believe if you make too much, it is a sin. It is a sin that you should be relieved of. Well…not only was I right, it is much much worse than even I thought. Many of you have emailed me telling to me to give them a chance…and that I was wrong. All of you are now agreeing with me…with many of you telling me their vote would be different at this point in time. Terrific!
The health care bill, the cap and trade bill, the raising of taxes, the sham tax cuts, the arm twisting in auto negotiations, the raising of more taxes…it all leads to one road…and explosion of government funded by the “privileged few!” Unfortunately, these people don’t get it…or maybe their goal is to simply kill the economy in order to create more victim votes. Yes…I am that skeptical of these people and what they are doing.
I can spend more time telling you about my feelings but I will stop here and leave you with one quote that is indicative of how these people think. When queried on Fox News Channel on whether it was fair to tax the upper income earners to pay for health care for others, Congressman John Yarmuth (D-KY) stated and I quote, “They benefited unreasonably under the Bush tax cuts!” Yup…those people working their rear ends off to make successes of themselves benefited from our government largesse. Are you kidding me? Hey John…in case you forgot, it is the government that benefits from the people’s largesse, not the other way around. IT’S OUR MONEY! WE GIVE IT TO YOU…NOT THE OTHER WAY AROUND! Unreasonably? 35% rates are unreasonable? People in high tax states end up paying 45% at that rate. Unreasonable?
The problem here is simple. People like Congressman Yarmuth think it is not your money and it is theirs to decide what you get to do with it….and the bad news is…they are deciding. In January, I said I expected rates to go over 50%. We are going there. My expectation now is for rates to go into the 60s and maybe even higher. We are just spectators in the biggest robbery in history and a legal robbery in plain sight. If there was some opposition that had any grapefruits, I would make a large bet that these overreaching socialists would be out of power in the next election…but this opposition is impotent…afraid of uttering a cross word…and afraid of their own shadow. When G.W. Bush lowered tax rates by a measly 4 percentage points, the opposition was out on a daily basis using terms like “risky scheme” or “con job” or “gift to people who don’t need it.” They called Bush the ugliest of names on a daily basis. Today’s opposition stays mostly silent…and yes…while the mainstream media continues to kiss tush!
The market teased the upside, teased the downside…and almost out of nowhere, blasts back into the upper half of the recent 2 month-plus trading range. I am not amazed by this but I am amazed at how quick the moves are. I consider myself pretty decent at this and it has been tough going for me trying to navigate on a daily basis. We are now starting earnings season in a big way. We get a few big ones this week but a ton in the next 2-3 weeks. The reactions will dictate policy. I am closely monitoring resistance levels on all the major indices. A break above and we get another decent leg up. The NASDAQ and NDX remain the strongest…they would be the first to move above and are within a smidge of moving to new highs….with the S&P next above 956 and then the DOW…which continues to lag.
The NEW HIGH LIST and leadership has started to expand a bit. I am hoping to see more. Most leaders in the market pulled back to their 10 week moving averages where they bounced once again…giving the market the impetus this week.
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