The Ice is Getting Thinner
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 internals and the technicals continue to wither. The new low list is now picking up with more and more names breaking down. It is simple as that. I really don’t even need to talk about support because bottom line, if more and more names continue to break down and roll over, then the major indices will surely follow. I wish I had better news but it is what it is. The action had better change and in a hurry. I do not have to talk about sentiment…I don’t have to talk about opinion. I am just watching the 2 most important characteristics and that is price and volume. The rest is noise. We shall see what is at hand in the days ahead…of course, we have another bank bailout as well as the blob…I mean the stimulus bill.
Speaking of the stimulus bill, I have a message to President Barack Obama…and it is a serious message on several fronts. TRY AND START OVER! Of course, the mainstream media would never admit it, but just about everything you have done and said needs to be re-thought. I wish Superman was around, just as he was in the “Superman: The Movie” when Lois Lane died and he flew backwards around the earth, turning back the clock…but we can’t do that…can we?
Mr. President…you need to get off your high horse and realize all the adulation you received was based on a campaign. You are now in the real world where you make decisions that will affect the world. It is no longer just campaign rhetoric. Off the beaten path, you have already found out the talk of negotiations with the bad guys was silly as Mr. Wonderful from Iran has already stuck his middle finger at you…but my job is the economy and the markets So here you go.
1) You are on TV too much. Every time I turn around, you are talking on the tube…too much in my humble opinion.
1B)…and when you are on TV, you continue to tell the people of this great country, about how bad things are and will only get worse unless your stimulus bill is passed. I guess you have not had one of your aides show you what happened to markets from the day Paulson and Bush used the same tactics to sell their laughable TARP plan. Maybe the following numbers will get your attention…3400 DOW POINTS. That is how many points the DOW is down since “the misery” Paulson proposed TARP. You are just repeating what the past numskulls did.
2) Your stimulus bill…who are you trying to kid? Even an economically illiterate person can see the stimulus bill for what it is. The list is out there for everyone to see. As I have said on TV, this bill couldn’t stimulate a moose in heat. Start over…COMPLETELY OVER.
3) Stop nominating and then electing tax evaders. Again, who is everyone trying to kid by telling the public Geithner’s tax problems were just a “mistake?” The problem with this is that the IRS loses teeth when it goes after tax cheats in the future. People will now have precedent to use the “mistake” clause and point to your own treasury secretary. You now have a chance to make amends by telling tax evader #2 Tom Daschle that he is no longer going to be in your cabinet. This will send a message to the people and the markets that you meant what you said about change and accountability and that there are repercussions. You cannot go after the bad Wall Street people while excusing your own cronies.
4) Stop leaking stories…and if you are not leaking stories, tell the people that are telling the public that “sources in the administration” talk is a bunch of b.s. In 2 days, Bubblevision says a bad bank is just around the corner…and then said it wasn’t…causing markets to gyrate when they did not have to.
5) Speaking of the Bad Bank idea, take your time and be very careful. Why? Simple! The wonder boys of Wall Street are still hiding massive derivative losses. Let me use that word again: MASSIVE! If you start pricing these assets, look out below as all the skeletons will come out. I believe things are much worse then they let on. And I would probably take my word for it as I called most all of this. I don’t personally have the exact right answer for this mess…but I do know one thing: I would not make the decision in days. How about taking a little time on such important issues unlike the Bush/Paulson nauseating quiniela?
I am rooting for you. I do not agree with a lot of your economic agenda, as I believe it penalizes the successful in order to reward those that are not. I believe you need to incentivize people to be successful, not give them handouts. Taxes are not low to keep people wealthy. They should be low to make more people wealthy. Please take your time and please take a deep breath before putting this country more in hock. Every dollar spent will be coming from somewhere…and you may, just may want to look at the price of Gold to see what will possibly come down the road if we continue this way.
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