THE CORRECTION DEEPENS! IS THE MARKET FINALLY STICKING A CERTAIN FINGER BACK AT BERNANKE?

Byaaronmat-admin

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In the past week, the all-important NASDAQ broke support as well as the 50 day moving average.

The same for the NDX. Please remember, we believe that the NASDAQ leads markets both up and down. The NASDAQ is actually sitting on the longer-term 200 day moving average right now.  The same for the RUSSELL 2000. Today, the DOW and S&P took out support as well as the 50 day moving average. This deepens the correction that started in recent weeks.

Keep in mind, we have no idea how long corrections last or how far they go…just that we know when a market is on the defensive. We now stay patient until we start to see markets defended and then turn up. Be patient as this correction has just started.

To make matters worse, leading growth stocks like APPLE, AMAZON, GOOGLE and many others are coming under severe pressure and are breaking down badly. This is never a good sign.

We knew sales and earnings for this reporting period were going to be anemic but one knows the reactions until they occur. So far, reactions have been horrid. This is another negative for the market.

Lastly, major averages are now down from the latest Mr. Bubble episode where Bernanke decided on a maniacal, open-ended printing of money. We have posed the question recently what would happen if markets finally ignore this obviously blatant move to goose the markets ever higher. We may just be at that point. Market needs a save.

Read more of my commentary at www.garyk.com and https://twitter.com/GaryKaltbaum.

 

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.