10/01/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST

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https://archives.warpradio.com/btr/InvestorsEdge/100118.mp3

JUST LETTING YOU KNOW

If there’s any one article I want you to read and listen to on Garyk.com it’s this one. I titled it: READ AND WATCH ALL OF THIS! HE GETS IT! THE CON-ARTIST MEDIA REIGN!

You know what I think of the media…they’re con-artists. They’re not even corrupt any more. They’re con-artists. They drive the agenda. They lie about the agenda. The hide the things they want to hide and they will pound away on the things they want to pound away on depending on who it involves. If it’s somebody they like and they do something wrong, they hide it. If it’s somebody they don’t like and they do something wrong, they will blast it for days and days. If it’s somebody they don’t like and do something good, they will not report it. If it’s something to do with someone they like and they do something good, they will be yapping it up to kingdom come.

Like today, there’s this new Kennedy out running for congress. And all of sudden they were all talking about all the Kennedys and blah blah blah. And I keep hearing this word “Camelot” and this, that and the other thing. The guy was a philanderer and he cheated on his wife. Yet, he’s talked about like he was this great man. No – he sucked as a man. I guess he was a good president, but they make stories up and it’s a shame. If there was criminal statute, they’d all be going to jail. It’s a shame. So watch that video.

By the way, Pat Caddell who does the speech is a democratic party pollster.

Today’s Market

I do have some things to say about the market today that probably you don’t expect. Because if you turn on your regular news, you’re going to hear what the Dow did today. But I’m going to tell you what the market did today. And it’s underneath the hood of the market that matters the most. That’s where we get our clues from. Not just from say “the Dow did this or the Dow did that.” But, rather, we look at what’s affecting things and whether it’s a broad move or not.

The Dow was 77. The S&P was only up 3. So the S&P was up only the equivalent of 30 Dow points. That Nasdaq was down 3. The Nasdaq-100 was down 5. Russell 2000 was only up 2 and change. The SOX was down. Transports were up only 7. Europe was strong. Asian was decently strong.

So what’s the deal. Let me be clear. There was less than meets the eye today.

  1. This statement should be posted for anybody out there. I’m sorr, it’s never good when the Dow’s up almost 80 and the Nasdaq’s down. The Nasdaq is the leading index. Always has been. Always will be. It measures how much risk people are willing to take. The Dow is the less risk index. It’s where money is parked when things are getting worrisome. One day is not the most meaningful thing, but combined with last week, it’s just something to be watched. I’d rather have the Dow down 80 and the Nasdaq is up 3. That would be a good day.
  2. The other part of the equation today was the fact that, at one point today, the Dow was up about 160 and it finished up only 77. The S&P which was up only 3 change – at one time was up 17. That’s not the end of the world. But what that means is that they’re still distributing stock up here

We shot out of the box today. There was a bad construction number and a little better Institute of Supply Management number. And the market lifted off. But really, it wasn’t that. A Fed Head came out and, for whatever reason, must have saw the market correcting in the past week, got his marching orders from Bernanke…hey you better go out there and talk. Of course, what did he come out and say? We need to do more easing. We’re not doing enough. And that’s when things started to lift. Financials led. But came back down. And, of course, anything weak-dollar-related, like IBM goes up. IBM broke out of a pattern and hit 212 and closed 210.50. Looks pretty decent. Of course, the past 2 quarters for IBM – zero and minus 3 percent. Currency play ladies and gentleman.

Also, Gold and Silver opened strong, but pulled back in a little bit. They’re just very extended. I just have to address something. I’m continuing to get a lot of emails on the Gold and Silver. So…

  1. As long as Gold and Silver stay above the rallying 21-moving average on a short-term basis, that is nothing but good news.
  2. On a longer-term basis, as long as Gold and Silver stay above the rising 50-day moving average, it remains in good stead.
  3. Pullbacks can happen at any time, They are extended to the upside. The fact that they can’t pull them back is actually bullish. We’ll see.

Where would I add? Well I was thinking adding breaking above the past three weeks and they  attempted that today and didn’t make it. But frankly, I would rather add, if they just sit here for another or 3 weeks and pull back a little. I’ll let you know.

I want to add a couple little things.

We had a little distribution last week. Came in hot and heavy today. And they distributed the Nasdaq, the Nasdaq-100, the Russell 2000, the S&P, and a little less on the Dow. So we’ll be watching closely.

I think right this second, above here, you’ve got the soldiers with mallets. The market tries to sticks its head up, the soldiers take out the mallets and knock it back down.

So we’ll see.

Also keep in mind that in a couple weeks, a few thousand companies report earnings. And I promise you, there are going to be stocks that look great right now, that gap down or break down on bad earnings. There are going to be stocks that don’t look so great right now, that’ll gap up and break to the upside on surprise earnings.

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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.