Stock Market Overview:
Stock futures are up nicely after the three day steep sell off we experienced on Wall Street. This appears to be another oversold bounce as there remains virtually no quality leadership to speak of. Oil prices fell 5% on Tuesday and closed in the high $20’s. Gary called the top perfectly for you in the latter half of 2015, helping you sidestep this year’s brutal sell off.
Gary’s Thoughts: Morning’s like this trap the shorts and prevent people from getting long as who wants to buy a gapping up market in an overall bear market? Markets do go up. Do not forget that. Rallies in bear markets are normal!
- MBA Mortgage Applications 7:00 AM ET
- Yellen Text To Be Released At 8:30 a.m. ET
- Janet Yellen Speaks 10:00 AM ET
- EIA Petroleum Status Report 10:30 AM ET
- John Williams Speaks 1:30 PM ET
- Treasury Budget 2:00 PM ET
Highlights Of The Day:
- Goldman Sachs Abandons Five of Six ‘Top Trade’ Calls for 2016 – Here
Gary’s Thoughts: NO COMMENT!
- Electric Fantasy: Will the Next Tesla Sell for $25,000?
Gary’s Thoughts: The bigger question…will it make money?
- World’s Negative-Yielding Bond Pile Tops $7 Trillion: Chart
Gary’s Thoughts: Yup…central bankers continue to smoke crack!
Stock Market Commentary:
The major indices were simply all over the map. What looked like a good close turned into another drop into the close. The inability for the market to bounce clearly illustrates how weak the market is right now and tells you everything you need to know. In other news, oil prices fell 5% and is once again trading in the high $20. Gary has done an excellent job of keeping you out of harm’s way since he called the top last summer.
Gary’s Thoughts: Still stretched, extended and oversold. A good rally/bounce could happen at any time but so far, nothing doing. We hear Mrs. Bubble goes front and center tomorrow and Thursday. Rumors are running rampant that the fed has warned banks to stress-test negative rates. Wow! So far, anyone who has gone negative has seen their markets collapse.
Stock Market Overview:
Stock futures are down after Friday and Monday’s steep sell-off. Clearly, sellers remain in control of this market as the major indices continue to get smacked. On Monday, the Nasdaq Composite and Nasdaq 100 broke below support of their bearish flag patterns we highlighted for you last week. These are very weak patterns and suggest lower prices will likely follow for the bear market we are seeing in stocks. Gary called the top perfectly for you in the latter half of 2015, helping you sidestep this year’s brutal sell off.
Gary’s Thoughts: We were actually hoping yesterday’s late rally could lead to some upside today. Nothing doing! Our big report explains it all. Lots of rot showing up around the globe.
- NFIB Small Business Optimism Index 6:00 AM ET
- Redbook 8:55 AM ET
- JOLTS 10:00 AM ET
- Wholesale Trade 10:00 AM ET
Highlights Of The Day:
- Steep selling continues on Wall Street
Gary’s Thoughts: Unabated right now!
- Chipotle Closed Stores on Monday For Safety Measures. Company Starting Program to Help Farmers Ensure Safety of Food
Gary’s Thoughts: They had better get a good hold of this because a next time will not be good!
- Taiwan Quake Toll Climbs to 26 as Rescuers Search Rubble
Gary’s Thoughts: Only prayers!
“CALLING KEVIN BACON…”ALL IS WELL!”
By Gary Kaltbaum
Fox News Business Contributor
So…now we are hearing about global growth concerns. Thanks so much! The markets knew it a long while back.
For years, our number one motto has been “it’s never bad until the market says so.” We have had this motto because underneath the surface of a market going higher, it had been evident to us that the termites were eating away at the markets and the economy around the globe. It is not until the markets act up that there is trouble. Remember…Lehman, Bear Stearns, Merrill, Countrywide and the rest did not go out of business…the markets put them out of business! Who are these termites? It’s all the governments and central banks that believe you can grow your way out of trouble through more debt, more printing of money and now, negative rates. These people have continued to unabatedly interfere with free markets as well as the hard work of the citizenry. Throughout all this nonsense, we have simply posed the question to you dozens of times and that is “what is going to be the ultimate outcome of massive debt, massive leverage, the printing of money, 0% rates and now negative rates? You know what we thought the answer was going to be.
In case you did not know, nothing changed with Greece. They just cut another credit card to get them out of the news. Nothing changed here! They just printed $5 trillion, took rates to 0% and grew debt by another measly $8 trillion. Don’t worry! They got it covered! It’s never bad until the market says so! Well, markets are finally saying so. And frankly, we are not so sure these geniuses running governments and central banks can do anything about it now. You just can’t keep going deeper into negative rates…or maybe you could. You can’t keep printing money or maybe you could. You can’t keep going into more debt or maybe you could. The problem is that eventually, you get diminishing returns and those diminishing returns may just be at hand.
Tale of the tape:
Emerging markets plunge.
U.S. markets now plunge. (The NASDAQ is down almost 15% this year and it is early February!)
European sovereign risk soaring.
Markets no longer reacting well to all the easier money talk. Japan markets crushed after going negative rates!
Greek bond yields soaring. Remember Greece?
Credit spreads are blowing out.
Banking stocks both here and more around the globe whacked.
$7 trillion of debt now have negative rates.
We can go on but we know you are eating breakfast. Many are now agreeing with what we told you months ago and that markets were telegraphing not only slowdowns but downright recessions and our big worry remains…with so much leverage and debt again built up by the crazies and with rates already at 0% and a ton in the negative, what will these geniuses come up with next? We pray they do not come up with something new as anything they do will only exacerbate a situation that they created in the first place.
We constantly tell you we hope we will be wrong about all this but more evidence continues to come in that the can that was kicked down the road has no road left!
Keeping fingers crossed!
Stock Market Commentary:
Stocks fell hard on Monday but pared losses by the close. It was still an ugly day as many names were beaten up badly. The Nasdaq Composite and Nasdaq 100 broke down below support of their bearish flag patterns (highlighted last week). The Small-Cap Russell 200 also broke below January’s low which is not ideal for the bulls. Oil prices fell over 3% on Monday and that continues to hurt sentiment. There was virtually no meaningful economic data on Monday from the U.S.
Gary’s Thoughts: After a 7.3% drop in the Nasdaq from Thursday’s high to today’s low, maybe…maybe that’s enough for this second…maybe. Remember, these wild swings do not change the big picture. More carnage in tech, growth and beta. Gold/silver another good day but overbought. Definite bullish patterns now in gold/silver…but only on pullbacks now.