Gary Kaltbaum is an investment adviser with over 25 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 market experienced a follow through day last Tuesday…putting the market back into a confirmed rally. This simply means you now look to take advantage of the market until distribution days show up. But before I get into the markets, I can’t help myself. As you know, I am quite the passionate man as to what is been going on not only in Washington but across the rest of the U.S., as many state governments have also lost their mind.
Most of you already know my complaints as you have seen me on TV and listened to me on my radio show…not to mention my writings. But there was one headline that stood out for me from last weekend…and from the NY Times. Yes…I still read the NY Times. It is a headline and a story that for me, encompasses all that is wrong with the 3 card monte game being played by people that were elected into power….and seems to have no end to it.
The title of the article: “STATE PLANS TO BORROW TO PAY ITS PENSION FUND; THE LENDER IS THE PENSION FUND!” I did not make this up. Here are the first two paragraphs of the article:
“Gov. David Paterson and legislative leaders have tentatively agreed to allow the state and municipalities to borrow nearly $6 billion to help them make their required annual payments to the state pension fund.”
“And in classic budgetary sleight-of-hand, they will borrow the money to make the payments to the pension fund – from the same pension fund.”
NEED I SAY MORE? Our wonderful government, both federal and state, continues with their sleight of hand. We are so much in debt, I just don’t know how we are going to come out of it. And all we get is lip service. We get more taxes, more spending bills, a health care bill no legislator read…and now we get a President that wants to use a tragedy to push more taxes for a bill that amounts to nothing more than fantasy land.
Last I looked, you cannot fly airplanes with windmills. I am just so worried that so many of the people that put us into this position are still in their position of power…and couldn’t give a hoot about what is really going on. Keeping fingers crossed!
Nonetheless, the market is back in a confirmed rally. Since Tuesday, we have had three quiet days. This is good news…but we will need to see a move above those levels…which I do expect will happen as the past three days have given the market a decent handle to move off of. But let me be clear, there is a ton of resistance above here with a ton of stocks remaining in bad shape. I do believe any rally will be narrow and then we get to deal with what happens as we move up into the meat of resistance.
I do not believe it is going to be easy pickings and I do expect to see more nauseating gaps and reversals both to the upside and the downside…so keep your hats on. In sum, major averages and leading stocks are now in rally mode. There is no way of knowing how long or how far things will go. Until distribution rears its ugly head, we will continue to go after names that are emerging out of sound price patterns.
Since I am asked every day, GOLD broke out to new highs with GOLD stocks finally catching a bid. I think they look playable into any little pullback. The weekly charts of this group look terrific. I wonder what this group is saying.
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