“MARKETS IN NO MAN’S LAND!”
By Gary Kaltbaum
Fox News Business Contributor
Greetings from Japan…a magnificent place to visit. Visited Kyoto, Nara, Osaka and of course, Tokyo. We will be back home Sunday from our 25% business trip, 75% fun. No really, we are hear on a wee bit of business.
We were all set for our award winning look back at the Fed induced 08 collapse as well as what we are seeing now coming out of the geniuses that are running the world. But we kept adding to the report as there is a lot to say. We will now wait until the upcoming weekend for its release.
In the meantime, the Mets remain 5 games up on the Nats with 25 to go.
After the recent huge drop, markets are in what we would call no man’s land. They are simply still stretched, extended and oversold to the downside. A good bounce can occur at any time but notice, as of this second, bounces have been anemic and short-lived. The 1000 point pop on the Dow was normal considering the drop.
There remains very little in the way of leadership, hardly any new highs, hardly any groups in shape with the rest of the world on board with the ugly. Worldwide bearish action is usually not good.
We will let all the strategists tell you it is just a correction. (They are praying) We just knew if 2040 S&P was taken out, look out. The drop has been quite the drop. We expect more backing and filling but a big warning. Major indices seem to be tracing out nothing but a trading range…AFTER the big drop. Normally, when a big drop cannot be bought up, it is only a matter of time before the next levels are taken out to the downside. So stay tuned. A break below the lows of 8/24’s crappy open will be ominous. Again, we say crappy because that morning’s open was full of bad prints and mis-pricing, thus we really don’t know the exact lows of that day. As we have stated, we did not think those lows would be taken out any time soon but last week’s action does not thrill. Bulls are hoping this will turn into another 1998 affair where markets had a short bear market and turned back up quickly that October. We have been bearish all the way down as markets have shown no reason to be in the bullish camp but we would be all for it and will gladly change stance if we start to see markets change their stance but as of this second, ain’t happening. And if we continue to see markets open nicely and fade away all day, you will continue to know the big money still has plenty of stock to go.
We will get the 2 day Fed meeting soon where on day 1, they will be sitting in a room playing Space Invaders, Galaga, Frogger and Ms Pacman. They will then wake up the next day to tell us blah blah blah. We continue to be amazed at the egos of these people that continue to rig,manipulate and hold markets hostage.