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How to make it, spend it, and invest it

Investor’s Edge

Let’s face it. There are a million financial talk show hosts out there all of them can recite chapter and verse of the daily market trends. But, how many can give your listeners an inside look at what’s happening in the market? Gary Kaltbaum brings decades of experience and a no-nonsense approach to politics and investing.

Guess the gap…up or down. Seems that is the m.o. now. What news is going to cause a gap to the upside? What news is going to cause a gap to the downside? This morning, nothing really news. We still have tariff issues. We still are hearing about Iran. Immigration is still a problem. But yesterday, we gap up. This morning, we gap down.

We think we may add anew rules. Buy on the worst down days, when everything is uncomfortable, when everyone is calling for the end of the world. The next day is sure to gap to the upside. When things look great, when things are being bought with a fervor, selllll!

Just a little sarcasm as we head into the weekend. The market is narrower but what is working still works well. SOFTWARE was the strength again yesterday. SEMIS the weakest on Huawei concerns. Always watch the SEMIS.

 

Not a good open this morning after a strong day was sold off into the close yesterday…after a gross day Monday.

Leave no doubt, the internals are heading south. Leave no doubt, fewer and fewer working while more and more are breaking support.

Yields down to 2.366 as we write this. Something is up.

China tariffs and next up, the EU. Yippee!

Shorter-term, doesn’t take a genius to know markets are oversold. But oversold does not mean we do not get more oversold. The biggest problem markets will have right now is that most things have turned down for now. We suspect this will lead to some violent back and forth. Just leave no doubt, things are now tougher.
We would like to say it is good news that we hear this morning reported from the White House that a trade deal is not close and that trade war could last a long time! Yes…getting the bad news out can often be good news. But the market action has been horrid. We now take a step back. We respect that the market is now under pressure. We start watching for relative strength…those stocks that hold up best during market turmoil. We are patient. Do we believe this is the start of something much worse? We do not know but if worse cards come out of the deck….