THE JAM INTO YEAR-END

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I have been sitting here and asking myself for a couple of weeks: “Where is the jam into the end of the year?” After all, we all know how life works in the market. At the end of every month, more at the end of every quarter…and especially at the end of the year, the markets somehow pop into those time frames. Of course, it is illegal to paint the tape. Yeah right!

Off of some very ugly action in past days where the financials continued to act like it is 08 all over again and where markets would open strong, only to sell off, today looks different. All the things that need to happen to juice the market…are happening early…and on another gap. Very simply, the euro is gapping up while the dollar is gapping down…unleashing another big gap to the upside in the market. Just about all the gains since the recent low on 11/25 have been on huge gaps on supposed good news. Hmmmm!

I have no idea if they sell today’s gap again. I just know the days are running out in the year to take the market up to the point where the S&P is at least not down for the year. My guess is that this one stays up but who the heck knows? My worries have not been about December because of the end of year action. My worries have been more about January…especially with the action in the financials. Regardless, I suspect this will continue to be what it has been most of the year, a very tough market to play as these gaps remain a pain in the rear.

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.