12/09/2011: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST

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https://archives.warpradio.com/btr/InvestorsEdge/120918.mp3

JUST LETTING YOU KNOW…

14 days of trading left in the year.  The spasticity of the market has not died down. As I told you, the market from Veterans Day to the end of the year has been higher for the past 10 out of 10 years, and 22 out of the past 24.

Right after Veterans Day the market got whacked, coming into last week, and then we gapped up 2 days — got almost all of it back. Played around this week, had a rough day yesterday. And then yesterday I said,  just tongue in check, “we’ll just gap up 200 tomorrow.”  We’ll we didn’t get 200, but we had a good day.

A few chinks in the armor, but I’m going to give a bunch of names for your review over the weekend. These are the leading growth names have held up best, while the markets been going through whatever it’s going through.

If we ever do get a life out of here, I’ve got the names. It’s pretty simple. There is a decent amount of names potentially setting up. If they can start punching through to the upside with volume, then we can start talking.

• Apple (AAPL), remains in a six-month trading range, tightening up a little bit along the 50-Day MA.  Just moved off the 200-day moving average. Here is the problem, this rally up, has shown no accumulation whatsoever.
• Chipotle (CMG), pretty much like Apple. Rangebound for 5 to 6 months. Showing support along the 200-day moving average. Very little volume on moves up to the highs.
• Google (GOOG), acting pretty decently. Earnings are fine.
• Hansen Natural (HANS) strong, but a rally for two weeks on declining volume. Still, on a relative basis very strong.
• Intuitive Surgical (ISRG) needs to pop above 450 on good volume.
• Master Card (MA), It’s ascending, but volume starting lighten up as it ascends.
• VISA’s (V) strong also.
• Panera (PNRA) nice pullback, was up okay today.
• Underarmor (UA), pulling back toward the 50-day, needs to break above 85.
• McDonald, remains strong, overextended.
• IBM into new high ground

The good news about today...lots of green in the strongest areas of the market. That’s what I like to see. What was missing? There was just no volume whatsoever. When I see some stocks like Master Card up 8...I want to see some volume. Until I see some real conviction behind it, you’ve got to question the duration. Volume is about conviction. Always has been, always will be.

I think we’re going higher into the end of the year. It’s that seasonal strength brought on by the people that are down big this year. And I read a story where a ton of hedge funds are doing 15% to 20%. They’re going to do everything possible not to sell, which means go up and then...they come selling in January. Now that’s illegal — painting the tape. But they know not a single one of them is going to jail. So they continue to do it.

The “big news” today...another 900 billion Euros this time...to save the world. I gotta tell you that there’s so much printed money flying around right now. I don’t know where it comes from. I don’t know what its for.  And I feel like a I have a pretty decent eye on this stuff. It’s really just a joke. You have stupid people who caused the problem, telling you they know how to fix it. It’s quite an amazing thing to watch.

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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.