05/14/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST

Byaaronmat-admin

[email_link]

https://archives.warpradio.com/btr/InvestorsEdge/051418.mp3

JUST LETTING YOU KNOW

Heading into this week, we’re into a “no earnings” period. No one’s really reporting, except for a few retail names this week. But the big story right now is a softening the economy here and a softening economy in Europe and Asia.

And the question is: “What happened to the save of Europe?”

Well isn’t any save of Europe and now there’s talk of Greece getting out of the European Union. So, I don’t what to tell you except, “DEBT KILLS.”

And we have monstrous debt here and nobody’s doing anything about it and…this president doesn’t even pretend anymore. And that’s where we stand.

Markets remain in corrective mode. All I can you right now is that they’re coming to get’em all…or just about them all.

When you get into bearish phases they eventually get most names – not every name, but most names. And more and more names went into the negative side of the coin, on another very rough day in the markets.

Basically, Europe was weak and we were weak. We started off weak, rallied back a decent amount and sold back off. When oversold conditions get relieved in the middle of the day and then sell off again, usually it’s not good news for the market.

The good is (and this is about the only good news)…oil prices are plunging.

Hmm….I’m waiting to hear Obama blame the speculators for the oil prices now plunging.

Because he was blaming them for them going up.

Now, of course, Obama is going to take credit for oil prices going down.

Now let me be clear. There is a direct correlation between the market and oil prices. So when the market is going down, oil prices are going down and vice versa. The good news is that oil is down 10% for past several days, so we’re going to get knocked down at the pump. That is quasi tax cut for every American. And the airline stocks are now acting better because a huge portion of their expense is oil.

As you know, little by little, piece by piece, more and more names have been breaking support and/or moving averages, which means:

  • Fewer and fewer stocks are working
  • The ice is getting thinner
  • The market tends to come down when that happens

…and that’s exactly what we’re getting.

If you look at the major indices:

  • The Dow is sitting a little under support which is about 12,710 with a close at 12,695.
  • The S&P 500 which has support at 1340, closed at 1338.
  • The Russell 2000 which has support at 780, closed at 778.
  • The Nasdaq which closed at 2902, has support at 2900.
  • The Nasdaq-100 has support at around 2975, closed at 2590.

So…we’re on the cusp. You don’t want to see any further deterioration from here.

LISTEN TO GARY LIVE ON WEEKDAYS

6-7 pm EST

Best of Investor’s Edge
Saturdays 1-2 am EST

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.