YUCK!

The market remains in trouble…and in spite of oversold conditions, continues to get rocked. A few more things sticking out for me:

The Transports are in imploding mode. Not good.

The German DAX continues to implode…not to mention other European markets. The DAX has been a pretty decent leader of moves.

Some stronger retail names now look like they are starting to roll over.

This is on top of all the other nausea I have talked about.

Again, a clean break of the 200 day moving average and the next leg down will be assured. A few indices are already below with the rest on the cusp. If that occurs, expect something akin to last year when major averages dropped 15-20% from their highs. The worry this time is that the Transports are indicating recession. I knew the economy topped months ago but looks like it is getting worse.

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.