05/16/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST

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https://archives.warpradio.com/btr/InvestorsEdge/051618.mp3

JUST LETTING YOU KNOW

Take a Vacation

Nothing has changed in the markets today. It’s been another day where the market was up nicely and then sold off badly.

I can go into the “who,” “why,” “where,” “when,” and “how”…but we care about the reaction to all of that.

There was news from the Fed today that three Fed Heads came out and said that maybe we’re going to need QE 3. The market got bid up for 5 minutes and then went right back down.

There was news out Europe. First, Greece is okay, then it’s not. Then we’re gonna do this and then we’re gonna to that and then no we’re not.

And the list goes on and on in the news that came out today. But the only thing that matters to me is how the market reacts to all that stuff.

And to be clear, the market is not acting well.

Again, the market had a chance to be up and be up well. Again the market was sold off. And I gotta tell you…VISCIOUSLY.

Early in the morning, all the worst areas were up nicely. By the close, they were all smacked to smithereens.

Early on, the Financials had a little bid. By the end of the day, the Financials were once again got smoked and smoked badly.

And there’s not much more I need to add.

  • The market remains in a corrective mode.
  • All buying has been knocked out with a bigger bout of selling.
  • Price is not holding up.
  • First support levels have been taken out.
  • Now some secondary support levels have been taken out.
  • Fewer and fewer stocks are working, which means that more and more stocks are breaking support and/or moving averages.
  • Which means…take a vacation.

We have no idea how long this lasts or how far it goes.

I just know that again, today, they were distributing stock in a very big way. And if there’s anything you have learned from this show, never argue with action in the market. Because you will get run over.

Never argue with the market. The market is a great forecaster of things to come.

Remember just recently, I think Apple was around 640 at the high. And a couple guys came out and slapped 1000 price targets on it. Yippee yay yay. It’s 545 at the close today.

Don’t ever dictate to the markets.

That’s all. 

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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.