05/31/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST

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http://archives.warpradio.com/btr/InvestorsEdge/053118.mp3

JUST LETTING YOU KNOW

We Had a Wicked Day in the Market

Very bad early. Then, right toward the close, the market was ripping and then I don’t know what the heck happened. They slammed it back down by the close.

The story of the day, was that wicked action toward the close. The Dow, at one time today, was at a low of 12,316, so that’s 77 points lower than where we finished. The Dow was down 103. The Nasdaq, at one time today, hit 2801. So that Nasdaq was down about 36. The Nasdaq-100 hit 2507, so the Nasdaq-100 was down 30. So it was a good comeback.

But, on the other end of the spectrum, there was a pretty good drop at the close.

At 3:40p EST, the Dow hit 12,490 which is 97 points higher than the close. The Dow was up 71 at 3:40p EST…just sank like a stone into the close. I have no idea what happened. But they hit it and hit it good to finish with the Dow down net 26.

At one time today, the Nasdaq was actually got to be up 5 before finishing down net 10.

Some were saying, oh it’s rebalancing end of month. I don’t know.

Tomorrow is the Fake Unemployment Number

It is so full of caca, I don’t know where to start. It has become a political number. They are arbitrarily taking millions of people out of the workforce to make the unemployment number look better and it’s almost laughable to me.

I’m waiting to hear one journalist say to the labor secretary, who’s usually on, on the day of the unemployment number:

“Hey, do you have that list of the millions of people that are out of the workforce now that has enabled us to be at 8.1% unemployment? That if they were actually still looking we’d be in the 10% area?”

“Where is that list?”

But they don’t ask that question. They just go by the number.

I just don’t buy it. I believe it’s rigged. The employment situation has gotten a little bit better, but tepidly so. Tomorrow, I believe the expectations are for the unemployment rate to stay at 8.1%.

Here are the Most Important Things to Pay Attention to

  1. The market remains in corrective mode. That corrective mode is of unknown price and time. We can never predict. What we just want to do is to try to look for clues that the market is trying to turn or do better…and then take it from there.
  2. As of this second, the only thing I can tell you right now is that at some support levels, the market was again defended today. For certain areas to the penny.

Support Levels

  • The Dow. 12,300. A break below 12,300 would not be good news.
  • The S&P 500 held 1300. The low as 1292 a couple weeks ago, so I call it the 1292 to 1300 area. By the way, 200-day moving average is really just below all this.
  • The Nasdaq. The low of the past couple weeks was 2774 and held that 2800 area. I call support 2775  to 2800.
  • The Nasdaq-100. I’m calling support at 2475 to 2500.
  • The Russell 2000. I’m going to call support 745 to 750.
  • The Semiconductor Index looks like vomit.
  • The Midcap 400 held a higher low today. The low was at 905 and hit only 913 today which doesn’t mean that much. 

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Gary Kaltbaum owns Kaltbaum Capital Management, LLC (“KCM”), an investment adviser registered with the U.S. Securities and Exchange Commission. The opinions expressed herein are those of Mr. Kaltbaum and may not reflect those of KCM. The information offered in this publication is general information that does not take into account the individual circumstances, financial situation or individual needs of an investor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor 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.