Who Snubbed the Markets?
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.
Greetings from my balcony overlooking the Pacific on the Big Island of Hawaii. Wish you were here. I was actually going to go into one of my rants but I am on vacation and very relaxed… SERENITY NOW! So… maybe next time I will get into more b.s. that continues to come out of the previously respected, now shunned, financial companies. Let me just say everything I have told you for the past 18 months continues to come to fruition, only a lot worse than even I thought. It continues to be a cesspool of obfuscation by greedy, slimy, stinky people. Did you see the latest out of Lehman
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PowerRating)? On top of the major league lie of lst-quarter’s earnings, we now find out that they have sold a ton of the ca-ca to others… taking it off their balance sheet… but still owning a ton of the risk associated. So what would you call this? More of the same!
Not much has changed in the market. I know about last week’s ugly but again, not much has changed. FERTS, COAL, OIL, STEEL, METALS/MINING continue to act just fine… and the rest? Well, let’s just say the rest ain’t happening. In fact, all that is going on is that the bear market areas are getting worse…taking the market further down. The DOW remains the worst off with the S&P not far behind. The NASDAQ/NDX continues to act better, but a word to the wise: as I have told you. for the past year, the NASDAQ/NDX was led by a select few names both up and down…and I am now starting to see that select few maybe, possibly, could be getting in trouble. Apple
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The TRANSPORTS remain the bull of the woods… but again, have started to feel some pressure recently. So far… not many problems… but a clear break… and look out as the market will only get worse.
Also of note:
I am finding more and more names breaking down or breaking moving averages. This simply means fewer and fewer stocks are helping out the market.
WORLD MARKETS are gross and getting grosser. Remember what I told you late last year. In previous corrections, world markets held up fine. It is a real negative that this time, they are being yonked.
Many financials feeling like they are now going through the “giving up” phase where people sell at any price because they cannot take the emotional pain anymore. FINANCIALS are acting like death here – and rightfully so as the companies themselves do not have a clue. Furthermore, companies that lose big money usually have stocks that only go one way. I do believe the group is waaaaaay oversold but one could have said that a week ago. I suspect dividend cuts will occur very soon for many of these financials.
We are in what I call unprecedented times. An imbecilic and ineffective Fed is now being trumped by other countries who are actually raising rates to fight inflation while Uncle Ben is now just starting to realize what his and Big Al’s moves have created. The question now is… is there any ammo left? I say they are all but run out. I would continue to play this market defensively… and if you had to be invested, I personally will be looking for the FERTS, COALS, OILS, STEEL, METALS/MINING… but only on pullbacks at this point in time. This market ain’t no hill for a climber and sometimes, it just pays to stay out of the way.
Finally, we get the Fed nonsense this week combined with the end of quarter window dressing. of course, that is illegal and does not happen. I Expect a decent amount of volatility this week… and would not be surprised to see some bouncing into quarter-end… notwithstanding another financial blow-up.