MIDDAY NAUSEA NOTES
-By Gary Kaltbaum- Midday December 6, 2018-
-OK…it’s a long day but how about a potential positive for a change…BUT JUST FOR THE NEAR TERM!-
-Since we are being asked…a couple hours ago we noted how strong TECH/INTERNET/GROWTH/BETA was in relation to the DOW being down 700. As we write this, the DOW is still down a whopping 500 points but the NASDAQ has come all the way back to only down 50. We always watch beta when markets are in trouble. If beta can show relative strength, there is potential for the “market” to follow. After all, we just dropped 1,500 Dow points in less than 2 days. Of course, if the DOW rolls back over today…fuggedaboutit!-
-With major indices back near their yearly lows, already very oversold after two nauseating days, with the only index to break the lows (RUSSELL 2000) undercutting and trying to reverse and with most in despair…we predict nothing but if there is any day markets have a chance to wash out, it is this one. It had better!-
-But just to show how the average stock is much weaker than the indices, there are 1,100 new yearly lows today on the NYSE and the NASDAQ with no index below the yearly lows. Just pointing out some potential.-
Gary:
This is on a totally different subject. You mentioned on a recent radio show that at some point, with all the debt the US has and keeps adding, that the markets will simply ignore whatever the Fed does and we are in for a very, very bad Bear Market. I read last week that by 2023, the interest payments on the national debt will exceed the defense budget.
So, two questions. 1) At some point some point down the road will there be a time to sell everything? 2) If one does sell everything, is leaving it in a money market fund the right place?
You could probably write a book or extended essay on this, and I hope you do.
Many thanks,