Market Remains in Fine Shape
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.
The Department of Energy was instituted on 8-04-1977. The stated objective for this department was to lessen our dependence on foreign oil. Fast forward 32 years…how has this department done in lessening our dependence on foreign oil? No need to answer! And at what cost? The budget for another government behemoth is in the range of a measly $24 billion/year….16,000 federal employees with a much bigger amount of contract employees.
Need I say more of what I think of a health care bill that will be voted on soon…by elected officials that have not read it…foisted upon good Americans by elected officials that in the past few months have floated a: VAT TAX…SODA TAX…STOCK TRANSACTION TAX…SURTAX ON THE WEALTHY…this on top of rising INCOME, ESTATE, CAPITAL GAINS TAX…on top of the CIGARETTE TAX…and TAXES, FINES and FEES in this health care bill if you do not follow the Bolshevik’s government mandate. Oh yeah…and the lowering of deductions on charity and others.
Remember what I have been telling you for a very long time. The scam is simple…scare the heck out of the American public in order to spend money…then tax the heck out of people in order to gain more control and more power over those same people…in order to re-distribute that money to “the masses” in order to tell “the masses” how wonderful you are…in order to have those “masses” continue to vote for you. And who heads the tax committee….someone who did not pay their taxes. Do not forget, this nonsensical bill will not come into play until after 2012 yet most of the taxes would kick in immediately.
There is only one bit of good news from all this…Americans are catching on…and are starting to get the scam. Remember, you and I have not caused the massive deficits. It is 535 people…most who have never run a business or handled a checkbook…but now tell us they can now spend $875 billion TO SAVE MONEY! And we are supposed to believe that that will be the actual cost…and we are supposed to believe it will save money? Name one government program that came in as expected…name one program that lowered deficits. Come on…I will give you all the time in the world to come up with just one. The other bit of good news is in a number…383 days. Yup…383 days until the next election with a few in between. I think it is pretty simple…run all of them out of Washington…into their next job…which of course would be lobbying….and bring in all new elected officials…and tell them if they want to keep their jobs, they will no longer spend OUR money into oblivion and mortgage our children’s and grandchildren’s future. It’s that easy!
The market remains in fine shape. The recent pullback took the market back to logical support (50-day moving average) where the big boys stand tall and defend. They did a great job again. I can count on one hand the groups that are in poor shape…thus most groups remain in strong uptrends. Please notice that every time the market does pull in, the bears come out in droves telling you the party is over. The market will decide when it is over and so far, the market continues to do its thing. I know about unemployment. I know about the talk the economy does not support the move…but I also know the market moves in advance of the economy and expect better numbers to come out soon.
All major indices remain above moving averages…most world markets the same. One of my favorite groups remains GOLD as it just broke out of a 19-month base on heavy volume. These types of long breakouts usually work well. The last time GOLD had a big breakout was in September of ’07 from a 16-month range…which led to a 50% move for both the metal and the underlying stocks. We will know in time if we will see another move like the last one…but if Bernanke continues with his idiotic 0% interest rates and our politicians continue to spend away into oblivion, GOLD will have only one way to go as the DOLLAR will continue to act like the Mets. Earnings season is upon us. Pay attention to the news but pay more attention to the reactions. Please notice there have hardly been any warnings…which may auger well.
Disclaimer: The opinions expressed herein are those of the writer and may not reflect those of Wunderlich Securities, Inc. or any of its affiliates. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results.