One Big Day Doesn’t Do It
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
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Consumer confidence numbers plunge.
Durable goods numbers are a horror show.
Beige book shows slowdown across the board.
FRE lowers dividend by 50%.
CITI gets 7.5 billion at junk bond rates.
Housing numbers continue to plummet.
So what do we get? 550 DOW points in 2 days. So…if the news is all bad, how
is the market in a romp all of a sudden? Simple. It had dropped very far…very
fast…and ended up extended and oversold to the downside. I have been bearish
since the highs and even I told you in my last two reports that the DOW and S&P
were due to bounce back into their long term moving averages at 13,200 and 1480
respectively. Little did I know that it would happen in just 2 days. Welcome to
hot money city. Now what? How about some facts?
Everyone is saying that Wednesday’s rally was because of some dovish comments
by a fedhead. Well…the last two times the Fed cut rates, the stock market
popped. But the market has given everything back.
The NASDAQ’s price gain on Wednesday was one of the biggest of the year…but
I have told you many times that one big day doesn’t do it for me unless it comes
in the 4th through 10th day off a low. Wednesday was day 2. But here is a very
important fact. The Nasdaq’s nine biggest up days of all time all occurred
during the bear market of 2000 to 2003…and the Nasdaq’s biggest up day of this
year came on Nov. 13 ââ”