The Next Leg of the Bear
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 Market Alerts click here or call 888.484.8220 ext. 1.
The stock market, both ours and around the world are now starting their next leg down in this bear market.
There is not much more you need to know. As I said in my last report, an ugly reversal like we saw on Tuesday almost always leads to further downside. This time… viciously. Anything that had been left standing…are now coming apart at the seams. Whether it is the big tech leaders like Apple
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I am short the markets and I am happy. As I have been telling you since the top, I have no idea how long this bear market lasts or how far down it goes, I just know that since the top, I have not wavered because of the clear lack of leadership. Yes… we have seen follow through days… and yes I gave them every benefit of the doubt… but no leadership showed up so there was nothing to do.
A few other thoughts:
Did you see the NYSE? It has already broken the bear market lows. Wow! This is because it is laden with OILS that cannot find a friend.
COMMDODITY stocks, for lack of a better word… have crashed. I gather they are due for a vicious bounce but I have no clue from where or when. Please study my major sell signal call from July 2.
RETAIL and FINANCIALS are still holding up. My guess is not for long. Too many are now pounding the table to buy these areas only because they have relative strength. I believe these calls are misguided.
I would not attempt to catch the falling knife! I hate the cliche. This is a market that has no interest in accommodating the bulls. We are in a new world of fast money… thus the amazing moves. I do not believe this is over, and suggest recent lows will eventually be taken out. The main characteristic of the latter legs of bear markets is vicious and panicky sell offs. We may be starting to see these characteristics rear their ugly head. STAY TUNED. The good news… IT IS TIME FOR FOOTBALL!
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 can not assure its accuracy or completeness. Neither the information or 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.