On Monday, I told you to expect growth leaders to start gagging. On cue, they are now being sold…and sold down hard. It was my contention that in bear markets, they eventually get them all. Eventually, anything in profits gets taken down as bear markets have to go through a coughing up stage. We are now entering that stage. I mentioned Priceline and Bidu for starters. Both have been mauled this week. I also mentioned the almighty Apple. Watch the $386 level which just happens to be the 50 day moving average. A break below and Apple will join in the ugly party. Other growth leaders that are now getting spanked are Green Mountain Coffee, Amazon and every high-end retailer.
This weekend, I will be providing you with a comprehensive report on every characteristic I reported to you that showed up during this bear market. It is amazing that in every bear market, these characteristics show up time and time again. As I have reported to you, this one has been classic and continues to be classic.
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.