JUST LETTING YOU KNOW…
Growth stocks are starting to broaden out. More and more names are showing up. It’s happening on days when the market’s doing nothing. This is all good news. As I have been telling you for days and day and days…the markets are stretched and extended and…at any given time, they can start pulling in.
I told you in the past couple of days, that I expected the biotechs to pull back, and now they are. I’m seeing a few other areas that are staring to pull back.
For example: Union Pacific. You can see it’s reverting back to it’s moving averages. I suspect that, given enough time, we’re going that with the rest of the market. It would be normal. It would be fine. It would be BULLISH.
Yes, only on this show would you hear somebody say, “Yes, dropping should be bullish.” Yes it would. Markets should be stair-stepping up, not going straight up. We’ve had a persistent move here. We’re overdue. Bullishness is high.
The good news is that I expect any pullback at this point to be controlled and rotational – as everything is coming up the right side. And once that occurs, as Stan Weinstein says, you go from Stage 1 to Start 2 and that is the advancing stage.
And as we go forward, we will have tunnel vision. For a very long time, we couldn’t do this. And very frankly, until January 18th, we couldn’t do this with this market. But, all of a sudden, the Apples, Coach, Mastercard and others…are starting to show themselves. So we let you know about them. And that’s that.
So very simply, the thought process is this: I’m not saying we’re going to pull back. I’m saying the markets are due to pullback. If it doesn’t, it doesn’t. I am saying that if do get a pullback it would be helpful and good. Wipe the smiles off the bulls’ faces. Get a little bit of the froth out of the way. Have stocks pull back into their moving averages, where you have secondary and proper buy points. And all is good.
On top of that, I’m still seeing strong action in the housing stocks. A few of them went to new high ground again today on good volume. And, as I mentioned – GROWTH NAMES.
A Little Op-Ed
In case you haven’t heard, Washington and the banks have decided to pay people. Yes, pay people. People who timed the housing market poorly are going to get paid. People that had very little money in the bank and knew it…and still took mortgages – are getting paid. Now that does not absolve the banks. As I have told you, banks and lenders, plus the people that run them, are a bunch of scum cakes. They are crooked. A bunch of them should have gone to jail. But I do not like these global giveaways because there’s enough to go around as far as guilt is concerned.
How about the politicians who forced a lot of this lending.
How about the Fed who was supposed to oversee the lenders and said, “No, it’s cool, sub-prime lending is good!”
And I read today, that people are going to have their principal on their homes lowered. Their mortgages lowered. And I’m hearing that, in order for that to happen, you have to be behind the eight-ball.
Now I’m not heartless. I’m sympathetic. But don’t tell me that all these people are victims. Don’t tell me every single one of these people did not know what they were getting into. Please don’t tell me that these people, many of them whom were flipping homes, in order to sell them a week later – did not know.
I want to know what you tell Mr. and Mrs. Jones, who have been keeping up on their loans, even though they can’t afford it. And they’ve been doing the right thing. What are you doing to tell them?
And when you start giving away money to all these people who AREN’T paying their bills, doesn’t that give incentive to those people who ARE paying their bulls – not to?
This is what I’m worried about. And this is the same thing I was yelling about in 2008 about giving the banks money. If you’re giving the crooks money and save them, don’t you have to save everyone? Shouldn’t I be able to go on the doorstep of the Treasury and say, “You gave to the banks…what about me?”
That’s what’s happening. And I don’t like it a bit. Not a bit.
We are becoming a giveaway society. The amount of money and things that are going into peoples’ coffers, whether it’s the electric car automotive companies. Whether it’s Solyndra. And I could just go on and on down the list to individual. I just don’t know.
What about the 2 or 3 years of unemployment benefits? Again, I’m sympathetic to those that don’t have a job. But where does it stop. When do we start giving incentives—the other way. To do right. To work. Very weird what we’re saying, ladies and gentlemen. It’s the opposite of what I perceive this country is about.
I guess I’m wrong. And, of course, this is all brought to you by Washington. None of this could have happened without THEM. Without their stupidity. Without their lax oversight. Without their insider trading that’s legal for them. Without their self dealing. Without their government guarantees to their friends.
So…at least this one’s not out of the taxpayer. But it will be out of the consumer, because when the banks pony up $25 billion, WATCH YOUR FEES GOOD UP KIDS!
What do you think? I’d like to know.
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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.