THE BAZOOKAS COME OUT AGAIN!

[email_link]

At about 3 pm on Thursday, the market looked to be crapping out once again…but not to be. Big Ben and his cohorts, in a coordinated effort, leaked to the press that they were ready with their bazookas once again. That was enough for the market to rip to the upside into the close…and then follow up on Friday. Regardless, the market experienced a follow through day on Friday which puts the market back into an uptrend.  We do not rationalize why. We only care about what the market exhibits. Keep in mind, while every bullish phase has started with a follow through day, not every follow through day has led to a bullish phase. This important characteristic just gives the potential to have a bullish phase.

There are a few technical occurrences we like. Firstly, major averages broke below important support and then immediately broke back above the support making it a “false breakdown.” This serves to wash out late sellers. Secondly, major indices have tightened up in the last week leading to several breaking above near term resistance. Lastly, foreign markets, that have been bludgeoned, look like they have held their lows. When the weakest comes off the lows, it usually leads to upside testing.

That all said, it continues to be one of the most news-driven environments on record. The constant interference and manipulation by the Fed sickens us but realize it is just something we will have to deal with. Speaking of the fed, they will be yapping this week. Yeah!  We now get to deal with supposed good news out of Greece but our stance has not changed there. Nothing will be fixed until the structure of the problems are fixed..and there continues to be no interest in this. Just take a gander at France where a very socialist government is taking over. In spite of the problems and the debt, the new dude comes in and lowers the retirement age…not the other way around. Frankly, we don’t blame him. These people have to be voted in. And oh yes, we will be in Greece, France and Italy over the next two weeks. We will report back to you on the goings on while we are there.

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.