What Happens After the Cut?
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.
Hillary Clinton and Warren Buffett are killing me. They were out yesterday
tag-teaming for higher taxes on the “privileged few!” What the heck is the
matter with these people? Why do they believe that the hard-earned money of
Americans should be in the government coffers? Why do they believe that hard
working Americans should have to work into June or July before they make dollar
one? A few trillion isn’t enough for our government? I do not think these people
realize it is not their money.
It amazes me that the whiners are out complaining that the fed caused the big
drop on Tuesday. They state that a quarter point was not enough. Do these people
actually believe a half point will have done the job?. The market did not go
down because of the Fed. It went down because the market was up 1000 points in
11 days. That’s 50% of it. The other 50%? Simple…70% of the market remains in
a bear market…and they were done bouncing up into resistance. In fact, many
FINANCIALS moved right back up into their declining moving averages. Some moved
into them to the penny. Just look at WB, WFC, BAC, CMA, MER for starters. Also,
the nascent bounce in the HOUSING stocks ended. As I told you, they would go
into bounce mode but also told you that they would fail.
From here…very tough to say but don’t believe it to be a positive when you
get such a massive distribution day so soon. It is #2 for the NASDAQ.
The major indices’ charts look horrid here. Small and mid-caps continue to
lag…and badly. Small caps could not even get back above the longer-term 200
day average.
I am now worried that the December rally may have already hit a wall. At the
very least, this remains a tough game to play with vicious moves up and vicious
moves down. It is that much tougher that so many areas of the market cannot come
out of their own private bear market. If breadth does not get better…and soon,
I am very worried about January as January has been a very tough month the past
few years.
Gary Kaltbaum