Gary on today’s early wild action!

January 14,2016

First and most important, do not miss the Fox Business Network Presidential debates tonight…on the Fox Business Network.

We came into this week thinking we were close to another decent low in this bearish market. We were not so sure after yesterday’s nausea as well as the early action today. With all the wild swings, this bad boy is very tough to gauge in the short term. But…we think today’s action just may be doing the trick. After yesterday’s gross and this morning’s early morning gross, there is a good chance things are in the midst of getting washed out. MARKETS DON’T JUST GO STRAIGHT DOWN FOREVER …WE THINK…and after 1600 Dow points in less than 2 weeks, a rally that sticks FOR NOW may be at hand. We have no clue about  length of time or price of any rally but stay tuned. We just know it is a rare occasion that markets get this stretched, extended and oversold to the downside without some sort of snap-back rally.

We must repeat, any potential rally/bounce will not change the big picture.  Keep in mind, rallies in bearish phases tend to be sharp, quick, make people feel good, suck people in and then bury them soon after so step lightly.

Gary Kaltbaum