kaltbaum premarket

DOW futures up almost 200 as I write this. Very simply put: MARKETS ALL BUT IMPOSSIBLE BECA– USE OF THIS CONSTANT MANIPULATION AND INTERFERENCE. Yesterday, they were crumbling…after a late reversal…they pop up almost 2% today. My advice…wait this thing out. I certainly would do know buying on this gap. Technically, disregarding all news, support held yesterday and today, market has a chance to show something. The worst areas will gap up best as they get most of the juice from the news. So…oil,,commodities of all kinds and of course, financials will have a good bid as more and more bailouts continue. Keep in mind, this is end of quarter today…hmmmm!


The following is the news…really nothing different…just more loans to help out with outstanding loans and help for banks that own the crappy loans. One big vicious cycle. NKE and RIMM wacked this morning. I think RIMM is eventually a zero.


THE NEWS: Notice bad loans come off balance sheets…too funny!

Under the deal, Spanish banks will be recapitalised directly by allowing a €100 billion EU bailout to transferred off Spain’s balance sheet after the European Central Bank takes over as the single currency’s banking supervisor at the end of the year.

The decision, taken by a meeting of eurozone leaders in the early hours of Friday morning, will be based on a move to put the ECB at the centre of a “effective single supervisory mechanism” for banks after an EU summit in December.

“We affirm that it is imperative to break the vicious circle between banks and sovereigns,” said a summit statement.

A promise was also made to “examine the situation of the Irish financial sector” offering possible relief to Ireland by relieving the government balance sheet debt burden.

The Spanish bank bailout, to be agreed on 9 July, will initially use the euro’s European Financial Stability Facility (EFSF) before it is transferred into a new permanent fund later this year.

When the transfer takes place to the European Stability Mechanism the new loans will not be given seniority, giving extra security to Spain’s creditors.

After the ECB takes over eurozone banking supervision next year then the Spanish bailout will “very rapidly taken off balance sheet” and directly loaned to banks reducing Spain’s debt burden and borrowing costs.

Herman Van Rompuy, the president of the European Council of EU leaders, hailed the deal as an important step “to reassure markets and to get again some stability around the sovereign bonds of our member states.”

But, he warned, the new aid measures would be reserved for “countries that behave themselves” by abiding by the EU’s fiscal rules and austerity measures.

kaltbaum email

Greetings from Olympia Greece…now heading back to Venice to board a flight to Paris.
They did it again yesterday…came out with rumor in last hour…to save the day…but as I write this, futures are up huge as EUROPE IS SAVED FOR THE 400TH TIME. I will not go into the news because nothing has really changed except those who have loaned realize they must continue to save as they are owed tons…that will never be paid back.
Regardless, a lot of technical damage done even though market reversed hard. I will know a lot more after today’s gap. Keep in mind, we are at end of quarter.
Before today’s gap:
A lot of leaders were rolling over.
UA done.
SWI breaks below support.
All the discount/dollar stores topping.
MNST breaks the 50.
CMG crashes.
And just a lot of tops.
Regardless of news, we pay attention to the reactions…but you must know that with the constant interference and manipulation on a daily basis, it is hard to get a foothold…so continue to play lightly…continue to have close stops…and protect capital. There is no reason to play into this nonsense. There is certainly a clear loss of leadership…and shorting is too tough. Just look at the last hour and as of this second, the opening gap today.
I will be on land this weekend where I will have a more extensive report for you.



Abound Solar Inc., a U.S. solar manufacturer that was awarded a $400 million U.S. loan guarantee, will close its doors and file for bankruptcy because its panels were too expensive to compete with Chinese products, according to the U.S. Energy Department.

Abound, based in Loveland, Colorado, borrowed about $70 million against the guarantee, the Energy Department said today in a statement. Calls to Abound executives weren’t returned today.

The failure would follow that of Solyndra LLC, which shut down in August after receiving a $535 million loan guarantee from the same Energy Department program. Abound stopped production in February to focus on reducing costs after a global oversupply and increasing competition from China drove down the price of solar panels by half last year.


SOURCE: http://www.businessweek.com



He is still on his European vacation. 

If this is now declared a tax by the Supreme Court, we now have an unlimited taxing authority…not just through front door taxes but through back door taxes.

Getting past the constitutionality, I have much bigger issues. This is simply taking trillions of dollars more out of the hard-earned hands of the economy and into the hands of bureaucrats to dole that money out. This will have a huge negative effect over time on the economy and as I have said for the past few years, humongous deficits have to be paid back…and they are paid back by the real economy…in other words, you and I.

To think anyone in their right mind believes this won’t further the bankrupting of this country…is beyond all logic. There has never ever ever ever been a government program that didn’t cost trillions more than stated. The people who sold this, lied to everyone about cost. Already, they have admitted it is now double the original.

Gary will have further comments on the healthcare ruling and the effects on markets and the economy later tonight.

Yesterday very suspicious. Whenever market has a big day, I look at growth leaders first and from yesterday:
CMG croaks…lowered numbers and a lawsuit but doesn’t matter to me why.
The leading discount retailers look like they have topped…therefore, sell any small position you have in DLTR…which also did 2 for 1 split. I see FDO gapping down this morning…not helping. The service made serious cake in DLTR. This makes service officially 100% cash.
MNST serious distribution.
UA looks done…after failing breakout.
Need I say more. Now also seeing market gapping down some today. I believe we are awaiting the healthcare decision…but not sure that moves markets…maybe some healthcare stocks. The expectation is the mandate to buy healthcare gets knocked down…my issue is one-fold…they blatantly lied about the cost to Americans. What else is new!?

kaltbaum email

Greetings from Mykonos…another beautiful Greek Island. Just got back to the ship as it is 7 hours later here.
Not much to add. These summer months the past few years have not been very thrilling…especially the past two and now this. I am amazed at looking at the eem,efa,fxi,ewz,xme,kol,slx,oih,xop,xle versus the leading names I have been providing you. They are still shaping up well…for the most part. I noticed a few below the 50 day…and not yet coming back like a UA.
Today, ORLY puts the kibbosh on the auto parts retailers. AAP already trashed…now goes the rest…notwithstanding a big reversal.
I also like the recent action in LNKD/FB. They are moving with each other.
I am thinking into quarter end this week that the market does not get into any more trouble…but not a guarantee. The bigger worry is after the July 4th holiday…if the market does not get a firm rally.
Anyway…keep size small…keep stops stiff and dont try to do too much in a market that wants to carve you up.



Running ads for more votes by giving away…someone once said we are screwed when this happens. It is happening. I tried to win “most witty’ in high school by giving out chocolate bars. I still came in second. 

NEW YORK (CNNMoney) — More than one in seven Americans are on food stamps, but the federal government wants even more people to sign up for the safety net program.

The U.S. Department of Agriculture has been running radio ads for the past four months encouraging those eligible to enroll. The campaign is targeted at the elderly, working poor, the unemployed and Hispanics.


SOURCE: http://money.cnn.com




I’d pay more…just not to you. Notice Obama says ‘WE” created a whole lot of millionaires. No sir…hard working Americans turned themselves into millionaires. You didn’t do anything for anybody. 

At a campaign event last night in Boston, President Obama criticized “Romney and his Republican allies” for refusing to raise taxes on the rich, insisting to his audience that  Clinton brought about the prosperity of the 90?s by raising taxes.

“We created a whole lot of millionaires to boot.  Businesses did just fine,” he insisted as the crowd applauded. “And you know there are plenty of patriotic, successful Americans all across the country — I meet them every day — who’d be willing to make this contribution again because they understand there is such a thing as the common good.  They understand that we’re in this thing together.”


SOURCE: http://washingtonexaminer.com



Department of Energy officials gave a New Hampshire-based biofuel company access to $80 million for a Michigan project that has already fallen short of job creation expectations, despite receiving another $40 million in state and DOE subsidies.

“In September 2008, Mascoma [Corp.] pledged 70 jobs at the plant by the end of 2012. On Feb. 29 of this year, Mascoma reported to the MEDC that only three jobs had been created by the grant,” the Capitol Confidential (Mich.) reports today.”The company has been given the full $20 million from the state.”

Mascoma, a renewable energy company that specializes in cellulosic ethanol, received another $20 million for research and development from the Energy Department in 2008.


SOURCE: http://washingtonexaminer.com




Recently I publicly debated a regressive Republican who said Arizona and every other state should use whatever means necessary to keep out illegal immigrants. He also wants English to be spoken in every classroom in the nation, and the pledge of allegiance recited every morning. “We have to preserve and protect America,” he said. “That’s the meaning of patriotism.”

To my debating partner and other regressives, patriotism is about securing the nation from outsiders eager to overrun us. That’s why they also want to restore every dollar of the $500 billion in defense cuts scheduled to start in January.

Yet many of these same regressives have no interest in preserving or protecting our system of government. To the contrary, they show every sign of wanting to be rid of it.


SOURCE: http://www.businessinsider.com