A program that provides subsidized phone service to low-income individuals has nearly doubled in size in Ohio in the past year — now covering more than a million people. At the same time, federal officials say they’re reining in waste, fraud and abuse in the program.

The Federal Communications Commission announced recently that reforms have saved $43 million since January and are expected to save $200 million by year’s end. In Ohio, savings are expected to be $2.9 million a year.

The savings were realized in part because the government gave out fewer cellphones to ineligible people and took steps to avoid issuing duplicate phones.





The BLS (New name BS) somehow says 360,000 left workforce in order to take unemployment rate down to 8.1% and now these same people mysteriously add 400,000 jobs. Where and whom? I will take that answer. I think David Axelrod now runs the BLS!

When it comes to economic data, as with much else in life, the media tends to overweight the new relative to the true. So each monthly jobs report is scrutinized, but later revisions tend to get ignored. Yet today the Burea of Labor Statistics did a rebenchmarking and found 386,000 new jobs.

As you’d expect, that doesn’t utterly transform our understanding of the economy. The job market is still weak, all things considered. But it’s not as weak as the data we’ve been seeing imply. And that can help us explain things like “why has the unemployment rate been falling despite weak payroll growth?” or even “how can Mitt Romney be losing with the economy doing so poorly?” The payroll growth maybe wasn’t quite as weak as we thought, and the economy overall was perhaps doing a bit better.



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First the leader’s list:
AAPL- Heading back into 10 week/50 day average.
AMZN- Pullback mode.
ALXN- No issues…riding up 21 day.
BIIB- Fails to break out again…holds 50 day on pullback.
CRUS-Pulls in hard with AAPL…taking off this list for now.
EQIX- Still no issues at all.
EXPE- Small cup and handle…needs to move above handle with volume.
EBAY- Now in pullback mode.
GOOG- Very strong and very extended.
HD- Strong but extended…just continues up.
HAIN– Failed short stroke pattern…no bid since. Taking off list for now.
KORS- Secondary priced Monday night. Deadened the stock right now.
MLNX– Taking off list…living under 50 day with poor action.
N- Moves out of short base into new highs.
SHW- No issues…no entry…THEY SELL PAINT!
SWI- Sharply back into the 50 day.
UA- Back under 50 day and almost off this list.
ULTA-Not much happening off recent strong gap.
V- Sitting tightly in here.
WFM- Also pulling back into the 50 day.
As you can see, CRUS,HAIN,MLNX coming off with SWI and UA on the cusp. Market pulled back nominally last week but average stock hit a little more. During the week, service sold half of AMZN and KORS with a good profit…keeping the other half. TSCO also looks ready to move above resistance. You can buy more moving above $101.28.
We are now into October where many say it is a less-then-thrilling month. But I couldn’t care less. Pay attention to the market Also, we start the Presidential debates this week with the election looming. And oh yeah….a little something called earnings coming out in next few weeks. So a lot on the plate.
I am just going to add SLV again if it moves above $34.05. The service owned before but sold too quickly. The service will also add back the GLD but dont have an exact price yet…as the 9/21 action has a bar sticking up…so it will be more about feel with that one…and will get back to you.
Also…watching names like LULU,MON,WPI,CF and a few others.




Really nothing great came out of today. We had some distribution this week. We had a rally yesterday. As I told you, one day of Distribution does not end a rally. But as I also told you a few days ago, I think we lost the wind at our back.

I’m not so sure we have the big headwinds but it’s going to get tough. That’s my take.

Of course, that could lead to something else.

Today was a Distribution day on the Nasdaq and the New York Stock Exchange. So not the greatest news.

Also on top of that, we have to discuss Apple (AAPL). As I’ve been telling you, Apple, more than any other stock in a very long time, is the proxy for the market. Not just in the fact that it’s a certain percentage of the indices, but it pulls the market with it to a certain extent.

And certainly, it pulls a lot of tech and that’s why we watch it so closely.

All of a sudden, Apple this week is starting to trade wider and looser. What do I mean by that? Constructive stocks trade tightly…we’re talking tight ranges. In the past week or so, we’re starting to see days in which Apple is down 15, up 15 and today Apple was down another 15 after it was up around 17 yesterday. So I’m just putting you on notice to watch that stock right now. Granted, in about three weeks, Apple will report the quarter. Obviously the iPhone 5 came out in the quarter so they’re going to be able to book a lot of that. We’ll see. I have no idea how that’s going to come out.

By the way the CEO of Apple apologized for the new map app they put on the new iPhone 5.

Back to the today’s market…just blah. Not a lot of good. A lot of red. Not a lot of big drops. Again, when the market gets hit, it is because the Euro’s weak, the Dollar’s strong and they hit the commodities and other areas. So I will repeat it one more time. I think we lost the tail winds in the market for right now. Whether or not we get some serious headwinds…we’ll let you know.

I do want to make note of a few things:

  1. The major indices are still trading above their 50-day moving averages. For example, the Dow is trading 13,345. The 50-day moving average is at 13,200. The breakout was at 13,340. So we’re getting back toward that breakout. We do not want to violate it.
  2. For the S&P 500, the 50-day moving average is about 1417 and we closed at 1440 and 1427 was the breakout on the S&P.
  3. On the Nasdaq, the breakout was about 3100 and we’re at 3116. 3050 is the 50-day moving average.
  4. For the Nasdaq-100 was the 50-day, we’re at 2799. 2750 is the where its 50-day moving average is.
  5. The area that continues to be “yuck” in the major indices is the Transports. Very weak.
  6. The Semiconductors continue to be weak. While it’s not the most major of indices, it’s something I watch.

But guess what, as we’ve been telling you, just avoid those week areas. We pride ourselves on not just talking about the indices. We talk about what sectors are leading and what the heck to stay away from. We’ve been telling you for months to stay away from most of the Commodity areas (except the oil area that got a little better bid). We’ve been telling to stay out of the Transports and the Semiconductors. And if any else changes in any of the other areas to the good or to the bad we will let you know.

And as always…remember that it’s your money. You decide what’s best for you. We don’t want people to be blind. We want them to do work on this. We want them to look at the picture of the market and look at the fear and greed that’s going on the markets and sectors.

The good news is that a ton of you are listening and are working at it. And it is very, very good to see. So keep it up!


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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.



The federal government is making another big bet on solar panel manufacturing with taxpayer money, hoping the third time will be the charm.

SoloPower held its grand opening Thursday in Portland, Ore., with speeches from local politicians and a ribbon-cutting. “It really revolutionizes rooftop applications, and it makes solar both easy and cost effective for nearly any commercial and industrial building worldwide,” CEO Tim Harris said.

SoloPower closed on a guaranteed government loan of $197 million last August, about the time another solar panel manufacturer, Solyndra, filed for bankruptcy. The failure of Solyndra cost U.S. taxpayers more than a half-billion dollars.





A tear-jerking video has captured the moment a Portland Trail Blazers rookie is reunited with his military brother who flew home from Afghanistan to surprise him before a big game.

On Wednesday, Meyers Leonard tweeted the emotional footage, which shows him breaking down as his big brother Bailey walks onto an Illinois basketball court and calls his name.

The video explains that the siblings became inseparable after their father died in a freak accident when Meyers was six years old, but they were torn apart when Bailey joined the marines in 2008.






 Of the twenty new or higher taxes in Obamacare, below are the five worst that will be foisted upon Americans for the first time on January 1, 2013:

The Obamacare Medical Device Tax – a $20 billion tax increase:  Medical device manufacturers employ 409,000 people in 12,000 plants across the country. Obamacare imposes a new 2.3 percent excise tax on gross sales – even if the company does not earn a profit in a given year.  In addition to killing small business jobs and impacting research and development budgets, this will increase the cost of your health care – making everything from pacemakers to prosthetics more expensive.

The Obamacare “Special Needs Kids Tax” – a $13 billion tax increase:  The 30-35 million Americans who use a Flexible Spending Account (FSA) at work to pay for their family’s basic medical needs will face a new government cap of $2,500 (currently the accounts are unlimited under federal law, though employers are allowed to set a cap). 

There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children.  There are several million families with special needs children in the United States, and many of them use FSAs to pay for special needs education. Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education. This Obamacare tax provision will limit the options available to these families.






(Reuters) – President Francois Hollande’s Socialist government unveiled sharp tax hikes on business and the rich on Friday in a 2013 budget aimed at showing France has the fiscal rigor to remain at the core of the euro zone.

The package will recoup 30 billion euros ($39 billion) for the public purse with a goal of narrowing the deficit to 3.0 percent of national output next year from 4.5 percent this year – France’s toughest single belt-tightening in 30 years.

But with record unemployment and a barrage of data pointing to economic stagnation, there are fears the deficit target will slip as France falls short of the modest 0.8 percent economic growth rate on which it is banking for next year.





The French government revealed a tough 2013 budget on Friday that seeks to tackle a €37 billion deficit with tax rises and deep spending cuts as unemployment tops three million and the economy teeters on the brink of recession.

France on Friday unveiled action to plug a 37-billion-euro hole in its public finances with the toughest package of tax rises and spending cuts the country has known in an economic downturn.

The 2013 budget adopted by President Francois Hollande’s cabinet commits the ruling Socialists to an austerity programme at a time when the economy is teetering on the brink of recession.