11/28/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST
https://archives.warpradio.com/btr/InvestorsEdge/112818.mp3
JUST LETTING YOU KNOW
The market has had some rough going as of late. As you know we had a pretty decent correction. Two Fridays we had a high volume turnaround day where the market was and finished near the highs of the day. It gapped up the next day, sat around and then Friday last week on a shortened session, had a very good day.
Then we walked into this week and the action has not been too good. And we walked back into today…
…and let me tell you about today. I did my scans last night and I’m like…they need to hold things right here. And why did I say that? Because they were starting to turn things down again. So I said they better hold things here.
And we walked to today and the market was getting smacked and it was somewhat of an ugly smack. The Dow was down 115, but I was watching the Financials and they were really starting to roll over…the JP Morgan as it rallied into the 50-day moving average and failed and started to roll over along with some other things.
And then something happened.
Now for the life of me, I don’t know what I’m about to tell you would change the market, because basically we had another big turnaround today, although volume was not there. But something was there today that makes me feel a lot better about today vs. last Friday the week before.
So unlike in the recent days, where Harry Reid coming out saying we’re not even close to getting a deal on the Fiscal Stiff, John Boehner came out and said – yeah we’re working it out. But two hours later he said, we will not raise any taxes. So, nothing’s getting worked out. But the market turned around 200 Dow points. The Nasdaq turned around probably 35…40 points. The S&P 500, about 20.
It was a good 1.5% turnaround on the day. Now, I must tell you that doesn’t mean much to me, except to say the market was defended today. And we’ll probably get some more upside testing.
What was more important to me today, that had not happened recently, is that growth had a bid.
Some of the names that were hit the hardest came off their lows. Some other names, were starting to jump a little bit. Some other names where back above their 50-day moving average after having undercut it. And that’s good news.
Let’s hope it continues.
Again, the low that was put in two Fridays ago, as I said to you, looks like a good low. I don’t know about it being the low. Remember, we’re into month-end, where they paint the tape and mark things up. Of course, that’s illegal…so “it’s not done.” And then we have the supposed seasonal strength of December just ahead, not to mention that the Fed is still printing $40 billion a month. And somehow, some yutz from the Wall Street Journal who is a plant for the Fed came out and said today, “Oh, they’re going to keep buying bonds, which is printing money, in 2013 (which we already knew).
And, of course, the Fed told the guy at the Wall Street Journal to say this because they’d like to get the market moving higher, as they know everything else they do stinks…hasn’t helped the economy…all it has done is screwed the savers…oh well.
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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.