“OY VEY!”

By Gary Kaltbaum
January 4, 2016
Fox News Business Contributor
When you arrest people because they are negative on the market…when you tell people not to sell…when you tell people they can’t sell…when you do everything possible to set conditions so no one sells…they sell. THAT’S CHINA FOR YOU.
We have told you for weeks that we were not so worried about December but to beware of January. January is here and wow! When we went to sleep, Dow futures were up 40.
Let us repeat, odds favor the 30% of the market that is not bearish…will turn bearish. That is simply how things work. We told you three weeks ago that markets were again acting like they did before the August trashing. We have written to you for weeks and months that unless the internals improved, it was just a matter of time. A matter of time may just be here.
Speaking of time…we have not had a bear market in 7 years. This is the outcome of continual central bank interference. In case you did not know, bear markets do happen. Our worry remains that central banks are good at two things…bubbles and busts.
This action this morning is not about China, not about any data point but an outcome of the continued deterioration in the market. Under the weight of the deterioration, the rest of the market eventually follows. Eventually may just be here. We suspect we will be writing a lot more in the coming weeks.
1 reply
  1. Avatar
    dennis says:

    I agree with you Gary. Its not all about China. There are so many unknowns going into this year politically, financially, and internationally. Throw in a federal reserve that apparently flunked money and banking 101 and you end up with a -275 day.
    Gold is supposed to tank when rates go up!! Chart for December should reflect higher short term rates. Not very convincing.
    Something else is going on.

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