The 3.8 percent surtax on investment income, meant to help pay for healthcare, goes into effect in 2013. It is the first surtax to be applied to capital gains and dividend income.

The tax affects only individuals with more than $200,000 in modified adjusted gross income (MAGI), and married couples filing jointly with more than $250,000 of MAGI.

The tax applies to a broad range of investment securities ranging fromstocks and bonds to commodity securities and specialized derivatives.



kaltbaum premarket

Some not so normal stuff occurring right now. This morning…euro is soaring…but futures are down a little and gold is being smoked. Normally, gold goes up when the dollar is weak. Also, oil prices getting hit…so a change in what we are seeing with the currency/market dynamic.
Without a doubt, markets hit a wall at logical resistance yesterday as the 50 day containing things. That doesn’t mean the market doesn’t just go through it to the upside today…just that odds dont favor that. If we are in a topping out process for the market, so far, this is how it is supposed to play out. You first get a topping phase…then a couple of drops…selling then picks up. All of a sudden, market hits a low and has a sharp rally into resistance areas…and then fails at those resistance areas. I am willing to say…SO FAR market has failed into resistance but quite aware between operation twist and qe infinity, the fed is printing $125 billion/month…so we stay judicious.
Adding nothing but if nothing changes, will provide a list of uglies tonight.



November 16 was a Friday. That day the market was in a fall into that day. That day was getting real ugly. And on that day we had something called massive put buying. The whole world was buying puts on the market, betting on further downside AFTER a big drop.

And that day the market turned around and finished up on volume, which just about always will lead to upside testing.

Well, fast forward to today.

We walked in. The market was up strong. Couldn’t hold it. Turned around to the downside. Hmm. And interestingly enough, ladies and gentlemen, where did that occur?

Well, the S&P 500…right at the 50-day moving average. Why do I bring this up? Go look at what contained the S&P on November 2. Go look at what contained the S&P on November 6. And maybe, just maybe…as of this second, look at what contained the S&P today.

Yes, it was that all important declining 50-day moving average.

To continue with that, the Nasdaq on October 17 rallied just above the 50-day before tanking. Today, the Nasdaq rallied just above the 50-day before selling off.

The same goes for the Nasdaq-100 to the penny today. In another words, the Nasdaq-100 hit the 50-day on 10/17 and 10/16 and today to the penny. I’m not making this up. Go check it out. The 50-day moving average is at 2700 on the Nasdaq-100…tagged it and closed at 2671.

Well, you’re getting my point. Just letting you know, in here at lower highs, we got churning and distribution at these levels.

What does it mean. I don’t know. But if we’re in a bearish phase, this is how they play themselves out. So we’ll be watching this closely.  

Just letting you know, at the very least, I think this rally hit a short-term high today and probably now has to do some mucking around or pulling back or sitting around before we can potentially move higher from here. That would be the guestimate.

That’s regardless of if news comes out from the “them politicians.” It’s regardless of any other news.

Keep in mind, we’re now in December. They did the mark-up period and we entered in December and all of a sudden they couldn’t keep it up today. How interesting.

I’m watching closely as we head in to January.


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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.




kaltbaum email

Nothing good happened today. In fact, if there wasn’t all this noise on the fiscal stiff, I may just look to do some shorting. Market sold off right as it hit inflection points today…namely the S&P at the 50 day.
Good sale today on RAX…did not like the straight up move…so will look at as it pulls in.
Let’s see how we open tomorrow. I have a bunch of potential shorts.

kaltbaum email

I am tinkering a little here. RAX is sloppier than others…straight up action. Go sell. My hope that the straight up condition gets pulled in where it can be revisited.

kaltbaum premarket

Amazingly, with today’s gap to the upside, major indices are back into the day after the election…when markets really turned down. We got a reversal on Nov 16 and haven’t looked back as they rammed this thing in a shortened Thanksgiving week and continuing into month-end and another gap into the new month. I stopped asking why. This morning, the excuse for the gap was that European economic numbers WERE WORSE than expected…thus expect more money printing…thus expect higher prices. Europe up strong so we follow.
On top of that, AAPL leading NASDAQ on the leash with AAPL now back into the 200 day with analysts falling over themselves trying to get the stock back up.
Letting today pass…and hoping we get some pulling in to get charts looking more reasonable…v-shaped charts do not thrill me.

kaltbaum weekend report

AMGN- Acting fine but sloooow.
EXPE- Acting fine…but not much ooomph!
EBAY-Good breakout Monday and sticking.

HD- More new highs but no entry.

MA Acts fine but no new entry.
REGN- Good move Thursday…right back down Friday.
RAX- Good move…a little straight up though.
SHW- Heading back to 50 day…not thrilled with volume.
V- New high but no new entry.
ULTA- Adding off the gap Friday. We’ll see what comes of it.
AMZN is back above 50 day but tough to add because of a big loss for the quarter…but no doubt, market likes the sales growth.
Currently, EXPE,EBAY,RAX on the service but a little pissed MA and V are not…just extended this second.
Market is up into resistance. Since the reversal low, not much in the way of pulling in. There was one ugly looking fade this past week but it was bought up. At this juncture, there are not a lot of set-ups. I mentioned last week the breakouts in CVLT,DDD,SSYS…and now all starting to come back. I may look at them if they pull in properly. I am also watching the handles in EQIX and LNKD but both trade below moving averages.
We are going to have to deal with the fraudulent fiscal cliff noise. I won’t get political here except to say it is all a sham…created on purpose to further agendas. They all suck.
For new subscribers, the leader’s list is what the service believes are the strongest growth stocks in market. The service looks to buy off proper buy points…but often, cannot get a decent buy point. Both MA and V did not give a good chance while the market was correcting…and had to wait for earnings to be reported. A stock will usually come off this list on a break below the 50 day/10 week moving average on volume.