HARRY REID AND JOHN BOEHNER FRONT AND CENTER…NOW I FEEL BETTER

Bear with me!

Imagine you were playing a tackle football game and on purpose, someone chop blocked you and busted your left knee up. Imagine that same person apologizing profusely and telling you they are a surgeon and will do the surgery for free. Imagine coming out of surgery on your left knee and waking up and noticing the bandage on your right knee. Yes…the wrong knee was operated on. You have now entered the Reid and Boehner zone.

To simplify things, Harry Reid is the cause and the problem. John Boehner is the cause and the problem. Reid has been “serving” since 1987. Boehner has been serving since 1991. To be fair, these two are not the only cause and are just part of the problem but these two have been in Washington overseeing our debt jump to a once unimaginable $16 trillion…on its way to over $20 trillion.

So the two people who have been a big part of the cause and a big part of the problem…are now telling us they are going to fix the problem. Sure! Right! Yup! Let’s see…while Bush was spending a measly trillion in debt on Iraq, Boehner said nothing. While Bush jumped all over a bailout (TARP) for the criminal activity at the banks, Boehner agreed. While Bush was running deficits of a few hundred billion, that was a no biggie to Boehner. Which gets me to Harry Reid.

Harry Reid makes Boehner and the rest look like pikers. This is a man that has not produced a budget in almost 4 years. This is a man that with this President, produced ON PURPOSE deficits of over $1 trillion each year since the President took office. This is a man who has shown a clear lack of giving a crap about the taxpayer and their hard earned dollars. This is a man who has been part of the slush fund given out to the “friends” of the politicians funneled through green companies that couldn’t raise a dime in private markets as they would have been laughed at. Now this man tells us we have to pay for all this crap.

Two charlatans running the show…pretending to really care. They only care at the time that benefit them the most. Then again, I think we are at the point that 99% of them are in that same camp. As I told you the day after Obama became President…be careful what you wish for as this will be the start of our move toward a nauseating socialistic model of government taking over more and more…and then the eventual demand for more money from the producers in order to pay for their nonsense. The con game has been sold quite well.

I have been saying for years that the likes of Reid, Boehner, Obama, Geithner and Mr. Bubble have been taunting markets with this build up of debt and the asinine and moronic printing of money to cover it. I have been saying for years we had better not wake up to the day where the markets do not act well towards these policies. Debt always implodes. It is just a matter of  what number and at what date. These people have done nothing more than interfere with, manipulate and taunt the markets.

Harry Reid and John Boehner are now going to negotiate our hard earned dollars. They have been front and center all this week. To be clear, there will be no spending cuts. They will just sell a drop in the rate of spending as spending cuts with the miserable con game continuing. Reid and Boehner…and of course another 4 years of my President. Over $20 trillion by the next election! I feel so much better.

KALTBAUM PREMARKET

The market will bounce…but it will be jagged. The NASDAQ/NDX will bounce…all it will take is one good day out of AAPL or GOOG. I just noticed AAPL is down a whopping $53 BELOW the 200 day average. That is amazing and unprecedented since the 09 lows. Yes it can bounce but the fact it is so weak is telling.
 
Just relaxing and watching here. S&P futures are down…NDX futures are up a smidge as AAPL is up $4.
 
DIS gapping down 5%…just another name that has a major chart break…and is in the DOW.

kaltbaum email

KORS broke 50 day…and that’s that. The last of the leaders basically gone. Market getting really bearish and the only thing left to do is wait for bounces to short. Feel good in knowing we played it tight for the right reasons in past weeks…and lost very little capital. Service in 100% cash…and relaxing. Will have a much bigger report over weekend. There may not be a report tomorrow morning as I have a few meetings.

SORRY…CALIFORNIANS ARE INSANE. THEY ARE DESTROYING THEIR STATE ENABLING THE POLITICIANS TO DESTROY THEIR STATE

NEW YORK (CNNMoney) — Californians approved a measure Tuesday that raises taxes on the wealthy and hikes the state sales tax. It is expected to bring in $6 billion a year, on average, over five years.

Proposition 30, which Governor Jerry Brown has lobbied heavily for, captured 54% of the vote. Its approval prevents massive budget cuts to the state’s public schools and universities.

Brown built the tax hike into his budget so its passage was critical. Among the hardest hit by the Great Recession, California has had to slash billions of dollars from its budget in recent years to close yawning deficits.

Taking a gamble, Brown went directly to the people with the tax measure this year after losing a battle with Republican lawmakers in 2011 to put the increase before voters.

Continued 

SOURCE: http://money.cnn.com

kaltbaum premarket

 

You know I am a cynic. Wall Street has earned it. No indictments…banks taking bad loans off books before earnings and putting them back on after…printing of money…analysts still shaky…
 
Today…upgrade of BAC…JPM gets fed approval to resume buybacks…that’s this morning…the day after the financials finally break the 50 day. Do you think these people are technicians? Kinda sorta suspicious timing.
 
On top of that, we are getting a bunch of AAPL selloff overdone…with one analyst becoming a technician saying it will rally up to 620 because it is oversold and that’s where resisitance is. That’s wall street’s hard work.
 
Futures are up a wee bit…and after yesterday, a bounce should occur…but as of this second, it is just that. Nothing to do this second except sell KORS if it breaks the 50 day…and probably will sell before earnings anyhow. Even though the stock is a rock and numbers are great, not the kind of environment right now…and if market worsens, they usually get everything.

kaltbaum email

Good sales on the open.
 
Market showing itself here and is turning down. I suspect we will start to see some wide and loose action with some vicious bouncing…but when all is said and done…think we head lower. I do recognize the fed is still out there doing their thing but not so sure market gives a crap about them at this point in time.
 
As the market definitively starts to turn down…and we dont have to worry about big rallies, we will get into short selling mode. But right now, it is imperative to protect capital which this service has done since the recent highs.
 
Expect more specificity on the short side as this moves forward.

11/07/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST

http://archives.warpradio.com/btr/InvestorsEdge/110718.mp3

JUST LETTING YOU KNOW

As you know, I thought Mitt Romney was going to win the election. Though, I did say in the past couple of days, that it really tightened up. But last night as I was watching, I saw that a swing state went very quick. And the first thing I said to myself was “Uh oh.”

Interesting thing about the election: 118 million people voted. I think that was down from 132 million or something like that. 2% different in votes nationally.

51 to 49 on the national popular vote, which does not count. I’m just making point. As you know, on my show, I have railed against everything in Washington that has brought us to $16 trillion in debt. And let me clear when I say this. They brought us here. It had nothing to do with us.

And the one thing I got from yesterday is that nothing has changed.

We have President Obama in the Whitehouse.

We have a Democratic Senate.

And we have a Republican Congress.

Nothing has changed.

At GaryK.com, I still have the debt ticker which continues to grow leaps and bounds.

Nothing has changed in that, we still have major league uncertainty out of Washington on policy and where we’re headed.

Nothing has changed.

The only thing I got out of this was: Now we get to see the same people that brought us to this point on our deficits get in a room and tell us that now going to figure out how to fix it.

Really?

And therein lies my worry.

I watched John Boehner today. What has he done? He’s overseen $16 trillion in debt. Said nothing while Bush was spending and spent a trillion dollars on the war. And then Obama comes in and all of a sudden he sees God and says…Oh we’re spending too much. A political hack.

And the same goes for the other side.

So nothing has changed. It’s something I am worried about long-term, and possible short-term.

As you know we have this thing called the Fiscal Cliff. If nothing gets done by a certain date, you have automatic increases in taxes on not just a privileged few, but everybody. Spending cuts automatic down. Most of it in defense, which I don’t know if it’s the worst thing in the world. And supposedly that’s going to destroy the country.

We’ll see.

The Market

Now surprise, surprise. In the past couple weeks, we have simply been telling that the market has been in a corrective phase that’s been going on for seven weeks.

But support has been holding for the past couple weeks and it’s going to need to continue to hold, because if doesn’t, we’re going to have another leg down. And you’ll know we’re having another leg down because those areas, but also Financials break the important support we told you about.

Well…it happened today.

You had a pretty darn good drop. I must you that futures were flat when I left my house at 7am. And I guess from what I hear, the market was down in the first minute and on the gap down – a good 150 to 200 Dow points. While we can say it’s because of the election, it does not matter to me what the market is looking at because ultimately, it’s going to be looking at the debt.

As you know, I have told you that I have gone very low beta, which means get out of the growth and the volatile stuff, have a big cash position on hand and anything breaking the 10-week/50-day moving average should be up for review.

And it happened even to Gold and Silver.

And now, the storm in the market got a little worse today.

I got some emails from long-term listeners today. And one of them said I’ve been sounding like an angry old man. That interesting because I don’t consider myself old and don’t consider myself angry. I consider myself to be a very caring American. We will continue to cover anything out of Washington that could affect markets and your wallet.

It is a simple as that.

We never had to do this years ago. All we had to do was…”oh the Fed lowered rates” or “the Fed raised rates.”

Deficits were up there, but it was $200 billion. And then starting in 2006…2007 with Bush and then TARP…all of sudden I realized that this stuff is going to affect us. And it has. So my promise is that we’re going stay in front of that. And we’re going to stay in front on the markets too, as best as possible. 

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.

 

YUP…THAT’S REACHING ACROSS THE AISLE!

Senate Majority Leader Harry Reid said Wednesday that he will try to push through a change to Senate rules that would limit the GOP’s ability to filibuster bills.

Speaking in the wake of Tuesday’s election, which boosted Senate Democrats’ numbers slightly, Mr. Reid said he won’t end filibusters altogether but that the rules need to change so that the minority party cannot use the legislative blocking tool as often.

“I think that the rules have been abused and that we’re going to work to change them,” he told reporters. “Were not going to do away with the filibuster but we’re going to make the Senate a more meaningful place.”

Continued

SOURCE: http://www.washingtontimes.com

ALREADY? IS THIS JUST A GUESS OR SOMETHING THEY ARE FLOATING?

Barack Obama may consider introducing a tax on carbon emissions to help cut the U.S. budget deficit after winning a second term as president, according to HSBC Holdings Plc.

A tax starting at $20 a metric ton of carbon dioxide equivalent and rising at about 6 percent a year could raise $154 billion by 2021, Nick Robins, an analyst at the bank in London, said today in an e-mailed research note, citing Congressional Research Service estimates. “Applied to the Congressional Budget Office’s 2012 baseline, this would halve the fiscal deficit by 2022,” Robins said.

Hurricane Sandy sparked discussion on climate protection in the election after presidential candidates focused on other debates, HSBC said. A continued Republican majority in the U.S. House of Representatives means Obama’s scope for action will be limited, Robins said. Cap-and-trade legislation stalled in the U.S. Senate after narrowly passing the house in 2009.

North American discharges fell 1.3 percent last year amid slowing economic growth. In China, the world’s biggest emitter, greenhouse gases from fuel use rose more than 9 percent in 2011, according to BP Plc statistics published on June 13.

Continued

SOURCE: http://www.bloomberg.com

kaltbaum email

Wow…go a breakfast…futures tank.
 
Sell the market proxy…not a biggie…sell probe of BAC.
 
KORS continues to hold in extremely well.