MOVING TOWARDS RESISTANCE

Byaaronmat-admin
1 Comment

I am just alerting you that markets are now rallying up into logical resistance areas. In my last couple of missives, I told you I thought we would see short term good news in the market as we had a follow through day and a good reaction to whatever Bernanke said. To my amazement, and maybe not, the move has covered lots of territory in a short period of time. But…please recall that I told you on two separate occasions that it would be normal to rally up into resistance as the markets were stretched away from their norm. Markets are now getting closer to their norm.

I am open for anything. As I have told you, with a Fed that is going to drop another trillion or two real soon…with a President who is going to propose another trillion or two of deficit spending, nothing is off the table. These unprecedented moves have a huge influence on markets. Of course, the ultimate outcome of massive debt will eventually be a huge negative, but in the near-term, anything can happen. Remember, the Fed knows they cannot influence the economy…but they have been able to influence markets…and will continue to try.

Again, this move up is normal. It is what happens into resistance that is going to matter most.

 

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.

One Comment

  1. Good points, gold will probably be a safe bet with all this funny money printing going forward.

    Keep up the great work on your show, we all appreciate the work you put in scanning and dissecting the markets for us to have a better understanding.

Comments are closed.