04/10/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST
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https://archives.warpradio.com/btr/InvestorsEdge/041018.mp3
JUST LETTING YOU KNOW
What Changed Today
Yesterday, I told you that the good news was that Growth Stocks, so far, were acting just fine. In fact, there were almost no issues at all in Growth Stock Land.
That changed today.
I did most of my scans after the close today. I see a multitude of areas breaking below the all-important 10-week/ 50-day moving average AND WITH VOLUME.
In other words…the big money crowd – selling.
And they really left no stone unturned today. They came after a lot of growth names today.
Leave no doubt. The market is in some sort of corrective phase. That corrective phase is of unknown price and time. I don’t know how much or how long. What we want to do is stay in gear to where this corrective phase decides to end. We are in hopes that a bunch of growth names will find an area of support and put in new ranges to buy off of. And with the market is ready again, they shoot out like ball out of a cannon.
A Few Notes
- I have zero clue of how long it lasts and how far it goes.
- I tend to look at things as “something is toppy,” “topping,” or “topped.”
- Anything breaking the 10-week/50day Moving Average on heavy volume is up for serious review.
- If a stock has been riding up its 21-day moving average and then breaks below it, that means it’s going back to the 50-day and the decision has to be made whether you hold on to it.
- Don’t listen to anybody. They’ll tell you they know when this will end and where it will end. They do not know. The bulls will stay bullish. The bears will get louder. That is the nature of the beast. The last brutal bear, the bulls stayed bullish on stocks like Merrill Lynch, Bear Stearns, and Countrywide – and they basically went to zero. They never change.
- Your job: When things change, you have to go along for the ride. So don’t listen. Watch your stocks.
- Nothing has changed news-wise. It’s only bad when the market goes down. I’ve told you for weeks and weeks and weeks that nothing different happened in Europe. In fact the manufacturing and production numbers are terrible. They were down last month. Our debt keeps going up in a very, very big way. I watched Obama’s speech today in Boca Raton and I can’t even mention it or I’ll get violently ill. He just doesn’t care about debt or deficits. Our fake jobs number is not great.
- Markets are already oversold near term…so expect bounces. Will know more from the potential bounce. Oversold does not mean it has to bounce.
Nothing’s changed. The markets have changed. Sellers have the upper hand and they got some teeth in that upper hand today.
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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.