THE CLOSE

Greetings from Aberdeen, Scotland!

Markets overbought, extended and still no pullback. Need we say more. Seeing some rotating pullbacks but that’s it.

Did want to mention HOUSING now on the move…Fed will not raise rates so soon and rates around globe still a joke.

Keeping this short because on the move today. Hope all is well.

THE CLOSE

Another good day for Dow/industrial types. Names that have been still, names that have been dormant…in chemicals, in stuff breaking out of range and working. Keep in mind, low beta stuff but in this market, can turn into high beta.

Also:

AIRLINES wake up. Probably want to get them on the screen. High volume moves off lows.

FINANCIALS still inching higher. REGIONALS did back away.

CHINA (FXI) big day into new high ground…China ADRs along for ride.

Same for EMERGING (EEM)…BRAZIL (EWZ)

Wish I could complain about something. OK…Giants are 0-4. Only thing to worry about here is VERY VERY overbought…but VERY VERY overbought means market has been  strong. Would love to see this cause a pullback/settling down action. Too much froth not thrilling.

THE OPEN

Very good day yesterday for industrial types, economic sensitive stuff and Dow types as the DOW led up. Simply put no complaints except all measures overbought here and would love a pullback. Pullbacks work off froth and speculation. Just keep in mind overbought is a good thing…better than being oversold.

“FANG” and GLAMOUR STOCKS

We continue to see not so good action is some of the glamour names as we head into earning’s season. AAPL, AMZN, NFLX, TSLA, PCLN losing some luster…trading BELOW resistance and moving averages.

FINANCIALS continue the slow ascent. Higher rates on the long end continue to  do the trick…just very slow stuff.

GOLD…market up, gold loses luster…trades below moving averages.

Hope all doing well. Continued prayers for those affected in Vegas and amazed at the heroism by many. Imagine laying on top of someone you don’t know to block them from bullets flying over head.

BEFORE THE OPEN

We just arrived in Dublin, Ireland. As we were on the train, we got the news. The deadliest mass shooting in U.S. history had occurred in Las Vegas. The recent highest number was right down the block from my office in Orlando. Last week, my wife and I toured Manchester, England and went to the arena where someone else struck. I am like you. Stunned. I am like you. Shaken.

I have been saying for years how amazing there are not more soft target hits in the U.S. which tells us how good our intelligence is. But in such a great and free society, there is no way every one of these pricks can be stopped. Our prayers go out to all. We know now many lives have changed. We know that things will never be the same for them. We know Vegas may never be the same.

We will forgo our weekend market talk today. It does not seem important. We’ll just say after last Monday’s ugly, the action into the end of the week was strong with leading semis breaking out and beta, which got hit hard last Monday, back on the move. Financials, which were weak, are also setting up well off of higher long rates.

Again, our sincere and solemn prayers go out to all.

TRUMP BOTH SIDES

By Gary Kaltbaum- October 1, 2017

Greetings from Belfast Ireland as the GK birthday celebration continues. If you have never been to Northern Ireland, my highest of recommendations. Yesterday, did the Giants Causeway, Carrick-a-rede bridge, Portrush, Bushmills and the whole coastal drive. Today, did the Titanic expedition (better than the magnificent they said it was) and all of Belfast. What a history in just the past 30-40 years. The GK tour of the world this year took us to all of Switzerland, the south of France, Paris, Normandy for all the D-Day sights, Krakow, Poland and the concentration camps, Wimbledon, U.S. Open tennis, the Ryder Cup, Berlin, Germany, most of England’s best golf courses and of course, Disney World. Heading to Dublin tomorrow and finishing up in Scotland to play Trump’s course as he makes golf great again and finish up at St. Andrews. Already planning next year. I decided a few years back that when you are done, you don’t regret the things you do and the places you see..and decided I wanted to see everything. One life kids.

And subject!

About  3 days after Maria hit Puerto Rico, I started to notice something which made me watch and read a little closer. I told my radio audience that I expected any day now for the media to start making up the story that the response to Puerto Rico by Trump would be deemed terrible and it would be “Trump’s Katrina”. I saw it in the stories they were driving and their subtle overtones. I saw it in their questions that were being asked. I saw it in the guests they invited on. I saw it in the guests they did not invite on. The fix was in. The fact is the media saw an opening. They saw an impossible situation in Puerto Rico, one that could not be fixed easily as everything was against Puerto Rico. An island 1000 miles from the U.S. An island that went into massive debt with promises of great infrastructure (never happened). An island completely exposed to a monster hurricane’s wrath. The media went into attack mode. Just say it. Just ask the question. Just get some pawns in your game and blame Trump.  And then this?

Is Maria Donald Trump’s Katrina?

Is this Trump’s Katrina?

I want you to think of Katrina.

This can turn out to be Donald Trump’s Katrina?

We’re hearing today for the first time comparisons to Katrina.

This could be our modern day Katrina.

Reminiscent of a storm I covered in New Orleans a few years ago.

Is this Katrina?

Trump administration on defense!

Trump, spends more time on the NFL, ignores Puerto Rico.

Trump is on the defensive over Maria response.

Trump defends his Katrina response.

Critics slam Trump administration on Puerto Rico response.

And my favorite:

I hope it’s not because Puerto Rico has a lot of brown people.

Of course, it’s all about the racism!

These are statements by the media, questions by the media and headlines by the media. The drive to blame everything on Trump and compare to Katrina was on. I could have listed 1,000 other statements. I could have included the 24/7 negative chyrons. Don’t believe a word. Three massive hurricanes that have now stretched the boundaries of manpower, of time, of location, of money, of everything. In Puerto Rico’s case you get supplies there but the roads are not clear, you get the roads clear but there is not a lot of electricity, you don’t have enough electricity, you can’t….and on and on and on. I saw it coming. I told everyone it is coming and I am letting you know it is the media that is using a gargantuan tragedy for their agenda. This was planned and driven in advance. This is the worst of their worst I have seen. I do not know how much lower they can get. And when Trump blasts back, they just blast back harder. If Obama was still president, they would be saying the same response was magnificent. These people have no shame. You know who they are. Even from Ireland, I see it is ongoing. SNL is now onto the same made-up story. Other comics and celebs are doing the same. I could not even list for you some of the expletives thrown at Trump by other celeb-types. Enough!

Now onto the hate mail I will get from the Trumpsters.

I have read the Trump tax plan, whatever is out there. Message to Trump, Mnuchin, Cohn and the rest. OUR ABACUS STILL WORKS. Why are you telling everyone the rich do not benefit? It is usually the socialist party that treats everyone like they are stupid. If you want to give tax cuts to the wealthy and successful, just say so. After all, who does the owning, who risks their capital, who does the hiring, who does the building, who pays a gargantuan share of federal taxes, who in some states has to work into the month of July before they make their first dime? It is the wealthy and successful. Message to Trump, Mnuchin, Cohn and the rest. When you get rid of the estate tax, it benefits the wealthy and successful. When you get rid of the AMT, it benefits the wealthy and successful. When you lower the highest tax rate, it benefits the wealthy and successful. We are not that dumb. So message to Trump, Mnuchin, Cohn and the rest, instead of looking and acting like socialists who bs the public for a living, just tell the truth. Tell the masses that it is these people that pay a gargantuan portion of federal taxes. Tell the masses it is these people that drive the economy. Tell them too high  taxes for anyone is unproductive as the money just goes into the mostly inefficient, ineffective, debt-laden hands of DC. TELL THEM THAT HIGHER TAXES DO NOT AFFECT THE WEALTHY BUT PREVENT LOWER INCOME AND MIDDLE CLASS TAXPAYERS FROM BECOMING WEALTHY AS MORE AND MORE IS CONFISCATED AS ONE MOVES UP EVERY RUNG OF THE LADDER. Enough of being afraid of defending the hard working, risk taking, toiling, sweating, hiring, paying, promoting, expanding, building, growing great successful producers of this country. They should be lauded, not put down. Socialists hate these people because the more people are successful, the less power they have. The more people are successful, the less people are are dependent on the largesse of the socialists (taxpayer). So message to Trump, Mnuchin, Cohn and the rest. Let the socialists whine and complain all they want. Remember, socialists are only socialists with other people’s money. With their money, they are quite the capitalists. So stop the bull crap. If you want to lower the wealthy and successful’s taxes, sell the lower income and middle class taxpayer on striving to be wealthy and successful and ultimately becoming wealthy and successful. Everyone and I mean everyone wants to get there. WEALTHY and SUCCESSFUL should not be dirty words. We sent the government $3.3 trillion federally last year and they still couldn’t make do and over $6 trillion when adding in local and state. THEY HAVE ENOUGH!