kaltbaum premarket

You may not know this but the russell 2000 is flat over the past 23 months…the s&p is up a wee bit…the dow is up a few percent…is single digits…but things now may be changing. I really thought a couple of weeks back that the market could get going…thus taking a proxy and waiting for stuff to break out. It looks like only thing keeping market down was the assclowns in Washington coming to a decision. Markets were strong Monday and have a hige gap up today to start the new year. Notwithstanding the mother of all reversals, the longer term weekly charts will have breakouts from the handles that have been built over recent weeks…not at recent highs but on their way.

Now…I have to make an important point…THE NEWS SUCKS…taxes are going up…and deficits are going to continue to explode. But the world is printing trillions and that is trumping everything. Fundamentally, longer term, I think this is a horror show that ends badly but we deal with the markets today….and if this move holds, all good.

Also:

Financials remain strong. As I have taught you, not much bad happens in the overall market when this occurs.

World markets are breaking out…again, the news stinks…but Europe and Japan now printing furiously and China is easing big time. FXI and EEM moving into new yearly high ground. Germany, London, Hong Kong and many others doing the same.

I cannot in good conscience jump on this gap this morning but this will set up a ton as we move into the new year. For someone who could not do anything while market was correcting, it does not thrill to walk into a gap like this…but it is what it is. Growth leadership has gone nowhere…maybe it gets going now. Try to ignore the news and just watch the market. It is tough for me. Keep in mind, there will be more shenanigans out of Washington…but again, a trillion/year printed here and the rest of the world following. That is a lot of cake.