I could do 20 shows on the Fiscal Stiff. I ask myself, is it worth it at this point and in time? And I don’t know what to say. Just remember what I’m been telling you for years. They were going to spend it first and come after the money second. Job well done.

I blame the media 51% as they are no longer are watchdogs of the people in power. They were great watchdogs of previous president. But they are no longer watchdogs. It does not matter what is done, how it’s done…nothing is wrong. Nothing is wrong.

We’ve run up another $6 trillion in debt in the past for years. They had promised to cut our spending and the deficits and they are not going to do it. They are only going to start raising taxes.

And let me be clear. If any of you think they want to raises taxes from 35% to 39% and that’s it…huh…that’s why if I am in the Republi-CON’s shoes, I’d tell the president to take a fly. Because there’s a con game going on. This tax hike does nothing for nobody. It pays for nothing for nobody. Does nothing for the middle class. This whole thought process that the middle class can’t move up because of the rich is a load of crap. And it’s getting tiresome to hear.

And none of this could happen without the help of your national mainstream lapdog paws in the air tongue wagging panting national media.

Moving on…

Well, we had this day again today where it was driven by “oooh we have this deal on the Fiscal Stiff…on no there isn’t a deal on the Fiscal Stiff…oh there’s a deal…no there isn’t – back and forth up and down. And I’m sitting here really shocked and amazed that the market would actually go up because of a deal on raising taxes. But, of course, the other part of the equation is that nothing gets done and they’re telling you the world’s going to end. I don’t know. We will see how it plays out.

One little note…we have now entered the zone. As you know we were stretched and extended in an oversold condition to the downside. We had that turnaround day on volume. I told you we’d get some upside testing. We are now in the zone.

What zone am I talking about? Massive overhead resistance, in and around the 10-week/50-day moving average for the indices – not just individual stocks. I am in particular paying attention to how markets act right around here.

It is going to be muy importante around here. In spite of any news on the Fiscal Stiff. 


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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.