12/07/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST
https://archives.warpradio.com/btr/InvestorsEdge/120718.mp3
JUST LETTING YOU KNOW
We had the unemployment figure out today and they say it went from 7.9% to 7.7%. Ladies and gentlemen, the fix remains in. 540,000 people they say, left the workforce.
If you went back four years and just had the same amount of people in the workforce, we’d be at 11% unemployment. But just about every month, tons of people leave the workforce even though we’re supposed to believe that the job market is getting better.
When the job market gets better, more people go back into the workforce because they have confidence.
Ladies and gentlemen, the hoax…the scam…the charade continues. And as I have told you, I have emailed them asking, “Can I have a list of just 10 of those 540,000 people that left the workforce?
There isn’t a list. It’s a scam, just like most of government.
But anyway, the market kind of liked it. And they came out with some confidence number. It was terrible and the market sold off. And you know what we had again today? A very ridiculously over-the-top split tape. But the wrong side of split tape. You know what that means. Let’s see what it means.
The Dow was up 81 today. But while the Dow was up 81…and let’s call it 0.6 of a percent to the upside – the S&P was up 4, which was less than 0.3 of a percent. The Nasdaq was down 11 and the Nasdaq-100 was down 15. Apple was down another 13 and half today. But that’s not the whole story, the Russell 2000 was flat today with the Dow up 81. The Transports were up a measly 12 with the Dow up 81.
So, you know what I’ve always said about the Dow leading.
We’ll be watching this closely.
We want it the other way around.
I would rather have the Dow down 80 and the Nasdaq up 11.
That’s just me.
Now the good news is, you got back that little bid in the Financials, where they got back above resistance and the 50-day moving average. JP Morgan was upgraded today and now coming up the side of a little base. BankAmerica furthered its little breakout. And a few other financials got a little bit of a bid.
And the Dow…it’s very easy to move the Dow. Just one stock goes and move. IBM was up 2 1/4 which is only 1.2%. And the fact of the matter is – if they move Alcoa…1.2%, it would be the equivalent of a Dow point. I’m not kidding you. But if they move IBM 1.2%, it’s the equivalent of 20 Dow points, because the idiots at the Dow continue to have it price-weighted to where Alcoa is meaningless. In fact, you could take Alcoa, BankAmerica, Cisco, GE, Hewlett Packard, Intel, Microsoft, Pfizer, AT&T – and all those stocks put together would not equal how important IBM is to the Dow.
My issue today is that it seemed like they went after some of the big Dow names to park. And that’s something that needs to be watched.
Housing stocks, green. Bouncing a bit. Not a lot of juice.
Oils, a little bit green. Somewhat mixed.
Commodities mixed.
Growth, no bid.
Gold up a smidge. Gold stocks, a couple down, a couple up.
I never like to see the Dow lead like this. It is indicative of selling risk and parking money “until.”
Apple continues to be under distribution. That’s the best that I can put it. And if this is as far as they can rally it, it’s not good news. Remember, I’m a very big believer that if you follow the big money crowd…they’re finding things out…they’re understanding things — there’s something going on there. And we’ll gather we’ll know the 3rd week in January. There’s something going on about margins and sales. They’re already leaking the iPhone 5S. I believe Apple is in the midst of maginalizing themselves because they’re coming out with phones too quick and not adding enough stuff and getting people upset. We’ll see. We believe in stock price.
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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.