kaltbaum premarket

The euro is gapping up out of a tight handle this morning. DO NOT PAY ANY ATTENTION TO THE NEWS. Because all the reporting is negative on Europe…but the Euro is saying something different. Or maybe it is the weak dollar. In any case, I think you can buy GLD and SLV off the gap today…using a stop below the 50 day on both.
Was coming in today and buying MLNX but I hear Cramer touted it so it is up 42…so will wait this second. HOPING FOR AAPL TO GIVE ANOTHER CHANCE TO BUY. But it is ip another $5 today.





Apple…An Amazing Story

Apple (AAPL) reported earnings recently and they missed estimates by a huge margin, and lowered by a huge margin. The stock gapped down on that, but didn’t go down any further and then went up another 17 today to 665 – a new closing high.

Apple now has the highest valuation of any stock ever…$623 billion, outdoing Microsoft from 1999.

There are two bets being made here:

  1. That the Price Earnings multiple for Apple is still in the teens
  2. The iPhone 5 is coming and I guess it’s going to cure male pattern baldness and hemorrhoids.

So the market, I guess, is frontrunning it. The stock broke out a little bit on Friday, followed through a little bit more today. Volume finally picked up today – about 1.6x average volume.

Amazing. In a normal world, companies that miss estimates and lower numbers get shellacked. I’d like to say that this is Teflon. But the fact of the matter is that when Apple has come out with a new product or a new version of an existing product, people trade in the old version to buy the new version due to the “coolness factor.” I gather that that’s what’s at work here.

That’s the story behind the Nasdaq and Nasdaq-100 right now.

When Apple gapped down, it gapped down to the 50-day moving average and that is where it held.

This  is an amazing story that Apple transformed itself in the early 2000s and has come out with products that everybody has to have.

They got past Steve Jobs passing away and they’re still coming out with new products and now there’s talk about the Apple iTV. I have no clue at this point in time about whether it’s going to be a big one.

End of August

We’re getting toward the end of August and the last nine trading days have historically been on the upside. September’s usually not a good month, but you never know, as we’re heading into the elections. Still a very split tape, but there is a bottom line here:

Every major index moved above a little resistance recently has the markets have edged up. I like some of the action in the leadership here. I like that today that we were down a little bit and came back.

A market they can’t send down, will go up.

I think the technical condition here is okay. And as leaders show themselves and break out and get into new highs, and show great volume and price pattern characteristics — we’ll be on top of that.

Of course, markets are never easy as that. We have never ever had to deal with the yapping and the mouths and the political interference that we are seeing in this day and age. I was reading some stories about some top flight hedge fund managers that are just returning money because, “we cannot compete with the printing of money, the political interference and the like.”

Gold and Silver

As you know, we’ve had this thesis on Gold that I started talking about 15 months ago. And it’s pretty much been on target except we’d love to see that 148 on the GLD get taken out and wash out a lot of people. I just want to let you know in the near-term that if the GLD can break above 158, that would be good news for the near-term and we’ll probably get some higher prices.

Also, the past two pullbacks into the 50-day moving average have held.

Silver topped out way back in April of 2011. The SLV was 48 and it’s currently 27 and change. Just letting you know that the SLV has shown some real defensive qualities around the 25-26 area. What I mean by defensive is that they’re not letting it go below those levels. That’st what we mean. It happened last December. It happens two or three times in May, June and July.

And something else happened today that hasn’t happened in eons. Silver went above a little bit of resistance today, with a little bit of volume…not compelling.

So I’m letting you know that Silver and Gold, maybe hand in hand, want to pull a leg up here. Now, this has happened before. Silver in in a low last December and rallied up…and then crapped out again very badly. So we really don’t know what this is going to lead to. I’m just letting you know right that Silver made this little move today that means potentially means you’ll get higher prices.

I’m not recommending buying it. What do you do with this is up to you. I’m just letting you know what I’m seeing.

Regarding Gold, if you haven’t heard, we predict nothing and we know nothing down the road. We do know that at the end of Gold’s big bull market in the 1970s, it ended in a blitzkrieg to the upside…a climatic move that ended in January of 1980. The last final move started in ’77-’78…when up nicely and the final months went up four-fold and in the final weeks, doubled into a classic climatic run…a chart that topped it out for the better part of 20-years.

And that’s long term cycle work. The one difference this time is that Gold, when it topped out when into the bearish phase that we thought would happen 15 months ago, went down 15% from the high. So far, Gold has gone down 15% to 18% from the high. And I’m posing the question to myself, is that it? Why? Because the unprecedented amount of money printing going on, not only here, but in Europe where they’re promising to print a crap load of Euros in the coming months.

That said, if the GLD breaks below 148 at any time, expect some serious technical selling. 


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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.

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Glad now I backed off FRAN as it reversed down. Will let you know.
Not going to add anything tonight but thinking S&P high will be taken out. I am seeing better action in financials and commods not pulling back…so on next good day for them, market will go through.
I suspect we will get many more set-ups in the weeks ahead as long as market hangs in there.



Updated 8:55 p.m. — A Republican Senate nominee found himself in hot water on Sunday for suggesting that instances of “legitimate rape” rarely results in pregnancy. 

Rep. Todd Akin, a Republican who’s locked in a hard-fought campaign in Missouri to unseat Democratic Sen. Claire McCaskill, was answering a question regarding his position on abortion rights in instances when a woman is a victim of rape. 


SOURCE: http://firstread.nbcnews.com



The FBI probed a late-night swim in the Sea of Galilee that involved drinking, numerous GOP freshmen lawmakers, top leadership staff — and one nude member of Congress, according to more than a dozen sources, including eyewitnesses.

During a fact-finding congressional trip to the Holy Land last summer, Rep. Kevin Yoder (R-Kan.) took off his clothes and jumped into the sea, joining a number of members, their families and GOP staff during a night out in Israel, the sources told POLITICO. Other participants, including the daughter of another congressman, swam fully clothed, while some lawmakers partially disrobed. More than 20 people took part in the late-night dip in the sea, according to sources who were participants in the trip.


SOURCE: http://www.politico.com



…and believe taxpayers are mean and uncaring. Idiots! Read this: 

 There is something to be said for universal health care systems. 

When my son developed a rash on an Italian vacation in Liguria last month, the pharmacist showed me to the doctor downstairs, who diagnosed the problem at no charge and sent me off with a handshake and a joke about a daughter in med school at the University of California, San Diego.

Italy may be in a funk, with a shrinking economy and a high unemployment rate, but the United States can learn a lot from it, and not just about the benefits of public health care. Italians live longer. Their poverty rate is much lower than ours. If they lose their jobs or suffer some other misfortune, they can turn to a more generous social safety net.


SOURCE: http://www.nytimes.com

kaltbaum premarket

Idiots in Europe wont shut up this morning…buying bonds…buying bonds…buying bonds. Duh. We all know they are going to follow in Bernanke’s footsteps…now shut up.
Futures are flat…AAPL is up $2 as they are jumping over each other because of IPHONE 5. I should have played and do not have an excuse not to play moving above the tight consolidation at $620…
ROST upgraded this morning.
I suspect market goes higher into end of August as major indices have moved above a handle. Until that is broken, market is in gear.
I want to wait on FRAN to pull in…so wait.
I think you can take a small position in TJX…wouldn’t buy it big just yet. TJX stop would be a break of the 50 day.
Should own EQIX,EBAY,MLNX, AAPL but want to figure a better place. EQIX,EBAYH,AAPL did give entry earlier but did not play.

kaltbaum weekend leaders

AMGN-Sitting tight in handle…may find spot to probe soon….but it is extended.
AAPL- Moves out off of the tight daily bars.
AMZN- Sitting in a tight handle…just above $240.
ALXN- Pulled back into the 50 day Friday.
BIIB- Pulls nice and tight towards 50 day.
CRUS-Edges above flag-like pattern.
EQIX- Starting to move out but volume?
EXPE- Affected by PCLN and will watch for where it holds support on this pull-in.
EBAY- Moving into new highs after sitting tight after gap.
HD- Broke out off of earnings.
MLNX- Strongest name. Looks like RIMM from Dec 03.
N-Sitting tight in here.
PETM- Breaks out off of earnings.
PRGO– Bye bye…breaks down off of numbers.
ROST- Refuses to break and now teases moving out again.
SHW- Strong but no place to enter.
SWI- Strong and in a flag-like pattern.
TJX- Edges out again.
UA-Starting to move out again.
V-Holds 21 day on pullback.
WFM-Moves off of 50 day.

Added KORS to list as well as service and moving out. One never knows but has potential.

Did not add TSCO to this list but put on service as it moves out of handle after strong move on



In late July, John Hynansky — a longtime friend of Vice President Joe Biden, and a major donor to Biden’s campaigns as well as President Barack Obama’s — was awarded a $20 million taxpayer loan to build a foreign-car dealership in Ukraine.

According to a public summary document, the loan, from the federal government’s Overseas Private Investment Corporation, is for “[u]p to $20.0 million,” and is designed to “expand Winner Import Ukraine’s automobile business, [and] construct and operate ‘Winner Autocity,’ which will have two new, state-of-the-art dealership facilities for Porsche and Land Rover/Jaguar automobiles.”


SOURCE: http://dailycaller.com



When Darrell Issa took over the chair of the House Oversight and Government Reform Committee after the Republican landslide in the 2010 midterms, most people assumed that his rhetoric about restoring the proper role of oversight was nothing but a philosophic cover for attacking Barack Obama and his administration.  A new report this week shows that Issa’s job was a lot broader and a lot tougher than people imagined.  His predecessor, the now-retiring Edolphus Towns (D-NY),covered up his own ties to Countrywide Mortgage and those of his colleagues and their aides in Congress while supposedly investigating how the defunct lender escaped scrutiny for so many years of negligent and fraudulent operation…


SOURCE: http://hotair.com