FOLLOW THROUGH DAY…BUT!

The market experienced a follow through day yesterday. By my discipline, it means the market is back in an uptrend…but…keep in mind, there has been a lot of damage done…and if this is going to work, it may take some time. It is just good to see the market holding the recent lows and actually moving off of it. I think there is also some near-term good news in that the market moved higher on poor economic numbers. I have been asked if whether this move is people making bets that Helicopter Ben will announce QE3,4,5 and 6 during is Jackson Hole meetings this weekend. I think anything is possible but I tend to not worry about why. Please read my recent report on how I thought the market was ridiculously stretched to the downside and that it would be normal to bounce up as moving averages continue to fall down. I believe the market is still in a bear market. It just needs to work off its extended condition to the downside.

Please keep in mind there are hardly any new highs, thus no breakouts. And furthermore, there are hardly any stocks even above the 50 day moving average. it is just good to see the market have a bid.

As far as Gold, methinks Gold may have completed its parabolic move yesterday as it was stretched away to the upside…the opposite of the market being stretched to the downside. I hear the GLD was worth more than the SPY. If that’s not a contrary indicator, I don’t know what is.  Gold is still in a bull market. It just needs to work off its extended condition to the upside.

Please check out my updated website…garyk.com.

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.