SHE GETS IT. THE PEOPLE THAT EARN IT, SHOULD KEEP AS MUCH OF IT.

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Chancellor Angela Merkel said on Tuesday Germany needs to stimulate domestic economic demand and urged opposition parties to stop blocking proposed tax cuts in the upper house of Parliament.

Merkel told business leaders Germany should end the automatic progression of workers into ever higher tax brackets due to inflation, which siphons more than 20 billion euros ($26 billion) out of the economy each year. She also renewed her calls for cuts in pension contributions as another way to boost purchasing power.

“Growth in Germany can at the moment be stimulated by an increase in domestic demand more than anything else,” she said.

Continued

SOURCE: http://www.cnbc.com

NUMBERS DO NOT LIE!

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In the wake of the Treasury Department’s newly released summary of federal spending for 2012, it’s now possible to detail just how profligate the Obama years have been.  Here’s the upshot:  Under Obama, for every $7 we’ve had, we’ve spent nearly $11 (or, to be more exact, $10.95).  That’s like a family that makes $70,000 a year — and is already knee-deep in debt — blowing nearly $110,000 a year.

To illustrate this a bit differently, for every Jackson ($20) we’ve had available to spend under Obama, we’ve also borrowed a Hamilton ($10) and a Washington ($1) and spent those too.  The only thing is that, under Obama, we’ve (literally) spent the equivalent of 342 billion Jacksons, 342 billion Hamiltons, and 342 billion Washingtons — borrowing all of the Hamiltons and Washingtons.

Let’s take a look at the scorecard, based on official government figures.  In fiscal year 2012 (which ended on September 30), the federal government acquired $2.449 trillion in tax revenue and other receipts.  It spent $3.538 trillion — 44 percent more than it had available to spend.  The resulting deficit was $1.089 trillion.

Continued

SOURCE: http://www.weeklystandard.com

THIS NUMBER SPEAK FOR ITSELF! THIS MUST CHANGE!

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The government spent approximately $1.03 trillion on 83 means-tested federal welfare programs in fiscal year 2011 alone — a price tag that makes welfare that year the government’s largest expenditure, according to new data released by the Republican side of the Senate Budget Committee.

Continued

SOURCE: http://dailycaller.com

KALTBAUM PREMARKET

Futures down as Euro pulls back… I am less than thrilled with the action in growth stocks. Money flows have gone into areas like the commodities off the bottom, the financials where Einstein couldn’t figure out their opaque accounting, housing…which remains in a bull as they refuse to break the 50 day…and industrial types. Regardless of this 3 day rally off the 50 day, just not finding a lot of set ups in growth land…so we are patient. The set ups I see are off the bottom…and not thrilled to play stuff like that because the moves are somewhat random. I think it best to work through earnings season before jumping all over things. MLNX blowing up. That came off leader’s list when because of the action on 9/7 and 9/10 and the subsequent anemic rally. ALGN also blowing up. GOOG reports after the close as well as MSFT and CMG.

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The service may start probing some commodity names…but after 3 days up, need a pullback first. Seeing a lot of names turning corner like RIO,BHP…and a couple that may lead like a SCCO. Right now, just continue to see better r/s in these areas as well as foreign markets.
 
The problem I am having is that growth aint really happening here…except for the KORS move yesterday, no bases to buy off of. The market is moving on the financials, industrials and commodities right now.
 
So we will adjust if these rotations continue. Would rather play growth…but it is what it is.
 
I will have more in the morning.

10/17/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST

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http://archives.warpradio.com/btr/InvestorsEdge/101718.mp3

JUST LETTING YOU KNOW

I received a lot of emails on the debate last night. I was on Twitter and being my usual sarcastic self.

How do I put this? Well first, obviously from your emails, nothing has changed in the con-artist corrupt media. We know what Candy Crowley did and tried to do. She was trying to act as an attorney for the President on a very important question. But I’ve got to tell you, I can’t wait for these debates to be over.

I believe there’s one left on foreign policy. Here’s the interesting story about this. I don’t think that hits anybody’s hot button. Romney’s going to say Obama’s inept. Obama’s going to say he’s done a great job and that he got Bin Laden. I don’t think that’s going to move people.

I think most of the stuff that would move people, is done. And look, remember what I told you about polls. They had exit polls with Bush-Kerry and supposedly Kerry won and they were congratulating him. If you believe the polls…man this thing’s going to be close again.

If you had asked me four weeks ago, I would have said it was over. President Obama gets a second term. I can’t say that now. And frankly, if somebody bet me, I’d probably take Romney right now.  Amazing.

When I talk about Obama and his policies, it has nothing to do with him as a person. It has everything to do with his policies. But it’s starting to get personal out there. It is just no fun to watch. And I’m sick and tired of the political hacks on both sides of the aisle. They’re nauseating.

Just remember, my pet peeve is the deficit. This is not brought to you by Barack Obama. This is brought to you buy Barack Obama and the Democrats and George Bush and the Republicans. I blame them all.

My issue in where I stand at this point is that this President promised me that he would have the deficit lower in four years and he lied to me as an American. He had nothing in his mind to do that. It was just campaign B.S. promise and I cannot forgive him for that because it is my hot button.

Others have different hot buttons.

Anyway, one more debate left.

Just remember ladies and gentlemen. If the president of the United States, whoever it may be, defines your life and where you’re going, you in big trouble to start with. Just keep that in mind.

The greatness of this country did not come out of Washington DC. It comes from the millions of us. Our generousness, our hard work, our sweat, our toil, our ingenuity, our wanting to be better on a daily basis, our wanting our families to be better, and our kids to have a great life. That’s what we strive for. And it’s in that striving that this country moves forward.

And all Washington does is get in the way, to the tune of $16 trillion of our money that hasn’t even been earned yet, that has already been spent – by those people in Washington.

That’s why when the TV comes on and I see a Republican, I vomit.

When the TV comes on and I see a Democrat, I vomit.

And the older they are and the longer they’ve been in Washington, I vomit even more.

Because it’s those people that have been there for years and years that have over overseen where we are right now.

And I kept my fingers crossed that this President was going to do something about it.

He did the exact opposite. He had no mind…he had no interest in keeping a campaign promise. That was a lie.

And I have no idea whether Mitt Romney’s going to be good or not. Maybe he’s a lying sack of you know what also. But in my mind, just get me somebody else and let’s see what happens.

That’s the way I look at it. It’s almost a default at this point. It is the biggest issue facing this country…and really around the globe.

Debt.

It is always explodes. It can blow up only so much, until it explodes. And it explodes when nobody expects it. And the people that caused it are usually off the playing field on a beach in St. Barts without a care in the world…with us left to pick up the pieces.

LISTEN TO GARY LIVE ON WEEKDAYS 6-7 PM ON A STATION NEAR YOU AND AT GARYK.COM

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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 premarket

IBM,INTC,ISRG,LLTC,FTNT,APOL,SWK,CHKP,STJ,DGX,TXT all gapping down. CREE,MANH,URI gapping up…but S&P futures still up…NASDAQ futures down. Why is S&P up? The dollar getting wacked again…thus the commodity areas/foreign markets are up. I have told you in recent days that I am seeing better r/s in foreign markets for the first time in months and months…because the Euro is finally strengthening…and something we have to watch.
 
Only add is KORS…as service buys back…made 10% first time before it ran into the seconday…but it held 50 day average and got on the move off a flat base yesterday. Would use partial position to start…just in case it wants to pull in off yesterday’s move.
 
IBD still has MARKET IN CORRECTION. For me, not paying attention to that noise as the 50 day held for the dow and s&p.

10/16/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST

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http://archives.warpradio.com/btr/InvestorsEdge/101618.mp3

JUST LETTING YOU KNOW

When you have a chance, go look at a chart of the S&P 500. All that happened here was that the market got extended, pulled back into the 50-day moving average, sat on it for a day and a morning and rallied off of it.

The Dow did the same thing.

The Russell 2000 got a little below it and is a little above it…still lagging vs. the big cap brethren, but doing better.

 

The Mid-Caps, back above the 50-day also.

The Nasdaq is a smidge back above the 50-day on an accumulation day.

 The Nasdaq-100 is still a little bit below.

And, of course, look at Apple, which is really the big influence and you’ll see how it held at that 625 level for the past few days, moving off of it today, closing at 649. Volume kind of picked up. They report earnings in about nine days. It also held the prior little move move around that 620 level and that was key today.

 

I also add the Semiconductors. The Semis found a place. Started rallying up today. Still a mess. Tomorrow, you’ve got Intel which will be down on the open tomorrow. You’ve got Linear Technology which will also be down on the open. The numbers stink. But I wouldn’t be surprised if they reverse them to the upside tomorrow. That’s what’s been happened over the past couple of years in Semiconductor land. The stocks get smacked in front, knowing numbers are going to be bad. They get hit in the aftermarket or on the open and then they reverse. I would not be surprised.

In the Commodities, I just wanted to point you to a couple of things. XOP is the oil explorers. It held the 50-day and rallied off of it.

The XLE, the bigger oils, rallied right back above it.

And the OIH held support and is now moving up.

Financials were somewhat of a mixed back today. Some good action. Some not so good. I can tell you that some of the regionals are acting poorly. Wells Fargo was not acting well. PNC bank breaks down today. But action in Citigroup is pretty good. JP Morgan is pretty good in here.

So again, let me repeat what I said yesterday. If that 50-day moving average holds, the market remains in shape. That’s the market and there are still plenty of stocks that are struggling. A lot of the names over the past couple of weeks have broken support and/or moving averages. And we need to recognize that this is no time to throw the darts.

LISTEN TO GARY LIVE ON WEEKDAYS 6-7 PM ON A STATION NEAR YOU AND AT GARYK.COM

6-7 pm EST

Best of Investor’s Edge
Saturdays 1-2 am EST

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.

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Getting ready for debate.
 
That hold of the 50 day was a good hold…and KORS moves out today…so re-buy it from here or on any little pullback. I will have more in the morning.
 
IBM coughing it up…INTC no great shakes…we’ll see if they hurt market in morning.

AS PREDICTED!

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France is sliding into a grave economic crisis and risks a full-blown “hurricane” as investors flee rocketing tax rates, the country’s business federation has warned.

“The situation is very serious. Some business leaders are in a state of quasi-panic,” said Laurence Parisot, head of employers’ group MEDEF.

“The pace of bankruptcies has accelerated over the summer. We are seeing a general loss of confidence by investors. Large foreign investors are shunning France altogether. It’s becoming really dramatic.”

MEDEF, France’s equivalent of the CBI, said the threat has risen from “a storm warning to a hurricane warning”, adding that the Socialist government of François Hollande has yet to understand the “extreme gravity” of the crisis.

The immediate bone of contention is Article 6 of the new tax law, which raises the top rate of capital gains tax from 34.5pc to 62.2pc. This compares with 21pc in Spain, 26.4pc in Germany and 28pc in Britain.

“Let’s be clear, Article 6 is not acceptable, even if modified. We will not be complicit in a disastrous economic mistake,” Mrs Parisot told Le Figaro.

Continued

SOURCE: http://www.telegraph.co.uk