GROWTH LEADERS CROAKING ON CUE

/in /by

On Monday, I told you to expect growth leaders to start gagging. On cue, they are now being sold…and sold down hard. It was my contention that in bear markets, they eventually get them all. Eventually, anything in profits gets taken down as bear markets have to go through a coughing up stage. We are now entering that stage. I mentioned Priceline and Bidu for starters. Both have been mauled this week. I also mentioned the almighty Apple. Watch the $386 level which just happens to be the 50 day moving average. A break below and Apple will join in the ugly party. Other growth leaders that are now getting spanked are Green Mountain Coffee, Amazon and every high-end retailer.

This weekend, I will be providing you with a comprehensive report on every characteristic I reported to you that showed up during this bear market. It is amazing that in every bear market, these characteristics show up time and time again. As I have reported to you, this one has been classic and continues to be classic.

 

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.

IF IT WAS THEIR OWN MONEY, THEY WOULDN’T PULL THIS CRAP AGAIN

/3 Comments/in /by

These people are just taunting the American taxpayer.

Energy Department approves $737 million solar loan guarantee – The Hill’s E2-Wire

 

 

 

 

PETER ORSZAG DOESN’T LIKE DEMOCRACY ANY MORE! THERE IS ROOM FOR HIM IN HUGO CHAVEZ’ CABINET:

/in /by

This is the same guy who failed miserably as Obama’s budget director and gets rewarded as vice-chairman at Citigroup. Fabulous!

Too Much Of A Good Thing | The New Republic

THE #1 QUESTION BEING ASKED OF ME

/1 Comment/in /by

The #1 question being asked of me is “what the heck is going on with the markets?” Good question. This question alludes to the fact we continue to get massive gaps to the upside and downside…massive swings to the upside and downside…sudden moves to the upside and downside.

I believe there is a simple answer. There are just too many outside influences right now playing with the emotions of the market. On a daily basis, we have heard:

We will default on our debt if the debt ceiling isn’t raised.

Greece is saved…no it’s not…yes it is…no it’s not.

The fed says this…the fed says that.

And don’t get me started with the constant interference and yapping out of Geithner, Obama and everyone else.

Never in my lifetime have I seen such market interference on a daily basis. Government yapping and government involvement is doing the trick. We cannot have one day where someone or something out of government is moving the market…and until this dynamic changes, expect more of the same. I long for the day where markets went on their merry way in between earning’s season but I guess with the massive build-up of debt around the globe, the people who created the debt need to make excuses and blame others on how we got here…thus all the noise.

Don’t even try to account for the past few days as markets dump 5-6% in hours and get most of it back in hours. These are outlier moves. The good news is that when all is said and done, markets will eventually go where they intended to go. I remember right before TARP, markets look poised to break down. TARP was rumored…the Dow went up 900 points in hours…a few days later, market rolled over anyway.

 

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.

GOOD BYE GROWTH LEADERS

/2 Comments/in /by

I guess it was just a matter of time…but finally, the market is coming after the big growth leaders off of late stage bases. Names like Priceline and Bidu come to mind but I must add that Apple now looks to be coming under pressure. Remember, in bear markets, they will eventually come after everything as anything sticking its head up and in big profits will get taken down.

 

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.

 

 

 

 

 

THE NEXT LEG HAS BEGUN!

/in /by

Greetings from Orlando airport as I head out west for the next few days.

After the initial knife to the downside, the past seven weeks has been a series of flops and chops, gaps and reversals and loads of wild action. But when all was said and done, it was nothing more than what I told you about how bear markets work. We have seen nothing more than a very stretched bear market that bided its time until moving averages caught up to price. A quick glance at the S&P will show that just yesterday, it touched the declining 50 day moving average. Today, selling picked up right off this all important area.

While the NDX and NASDAQ have held up better because of a few big cap names starting with Apple and Amazon, so many areas of the market had built bear flags. Those bear flags are now giving way as Financials, Steel, Coal, Oil and just about all commodity areas break into new low ground. On top of that, I am seeing areas like China, Brazil, Emerging markets and just about every other country break off wedges or into new low ground.

It is what it is. As I have written, take away the wiggles and the waggles and you have classic bear market action. Classic in how it topped…classic in the reaction to the top….classic in the bounce…classic in the run up into moving averages and now classic in the selling right off the moving averages,

The blame today will go to the Fed but frankly, I don’t. The Fed’s ineptitude has been on display for years. I still shake my head as to how one man who has been so wrong for so long, reactive instead of proactive…could have so much power. Oh yeah…Washington gave him that power.

I hope you realize bear markets only get unwound in time. No “twist,” no Qe3, and certainly no sham of a tax and spend bill will help. I have no idea how far this leg down goes both in time and price. I just know that the bear continues with many areas already leading into new low ground. If you would like to get an idea of those new lows, just check tomorrow’s Investors Business Daily and you will see how this list has now picked up markedly and in many sectors.

 

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.

A FEW GROWTH STOCKS BREAKING OUT

/2 Comments/in /by

I do not know what this portends for the whole market but some of my favorite growth stocks have been breaking into new high ground. Normally, this is good news for the rest of the market but so far, most of the market looks horrid. So…keeping it in the file manage that APPLE, AMAZON, MASTERCARD, POLO RALPH LAUREN and a few others have moved out. Just keep in mind, they are moving out of late stage bases…so watching closely. Late stage bases are more prone to failure. Just noting a potential good sign.

 

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.