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CHARLES: MARKETS CLOSE AS THE
COUNTRY BYES ITS FINAL FAREWELL
TO LATE PRESIDENT GEORGE HERBERT
WALKER BUSH.
THERE IS IS A LOT OF FALLOUT
FROM THE 800 POINT IN THE
DECLINE.
THERE WERE SEVERAL
NON-FUNDAMENTAL REASONS.
TRUMP'S TARIFF TWEET, YIELD
INVERSE WE TALKED ABOUT, A
POSSIBILITY OF A POSSIBLE
RECESSION.
THE NEW YORK FED PRESIDENT,
COMMENTS ON INTEREST RATES,
PUTTING THE FED BACK IN PLAY.
A LOT OF CONFUSION OVER
"BREXIT."
IT IS LOOKING SLOPPY OVER THERE.
THERE IS TECHNICAL ISSUES LIKE
MACHINE AND COMPUTER TRADING RUN
AMOK.
GET THIS, FOLKS, AS SON AS THE
S&P 500 CROSSED BELOW THE
200-DAY MOVING AVERAGE, LOOK AT
THAT THE BOTTOM FELL OUT.
THERE WAS BILLIONS OF DOLLARS
INSTANT SELLING ACROSS THE
BOARD.
HERE TO HELP BREAK IT ALL DOWN,
KALTBAUM CAPITAL MANAGEMENT
PRESIDENT AND FOX NEWS
CONTRIBUTOR, GARY KALTBAUM,
HERITAGE CAPITAL PRESIDENT PAUL
SCHATZ AND STOCK CHUTES, MELISSA
ARMAS.
PICK YOUR FAVORITE ONE BUT TO ME
SO MANY OF THEM HAD NOTHING TO
DO WITH FUNDAMENTALS AND ALL THE
BIGGEST HEADLINES WERE ALL ABOUT
SPECULATION.
>> THAT'S RIGHT.
WHEN YOU THINK ABOUT IT, FIRST
OF ALL, DOW WENT UP 1500 POINTS
FROM AFTER THANKSGIVING UNTIL
MONDAY'S CLOSE.
WE GAVE BACK 800 YESTERDAY.
GRAND SCHEME OF THINGS, NOT A
HUGE DEAL.
WHAT IS INTERESTING ABOUT
YESTERDAY, I REALLY FELT,
ESPECIALLY IN THE PROFESSIONAL
MARKET, THERE WAS PANIC GOING
ON.
YOU JUST MENTIONED IT.
I SAW FIVE HUGE INSTITUTIONAL
SELL PROGRAMS WHERE IT WAS GET
ME OUT AT ANY PRICE, GET ME OUT
RIGHT NOW, ALMOST IN PANIC FORM.
YOU'RE RIGHT ON THE FUNDAMENTAL
SIDE HOW DID PEOPLE GO TO BET ON
MONDAY, YIELD CURVE WAS FLAT,
WAKE UP TUESDAY, OH, MY GOSH,
THREES AND FIVES ARE SLIGHTLY
INVERTED AND TWOS AND 10S ARE
REAL CLOSE?
A WHOLE CON CLUNES OF
NON-ECONOMIC, NON-CORPORATE
FACTORS INVOLVED JUST FOR
YESTERDAY.
NOT THAT THE ECONOMY IS NOT
SLIGHTLY SLOWING BUT THE FACT
THAT YESTERDAY ALL THE DUCKS GOT
TOGETHER IN THEIR ROW, IT WAS
CONFLUENCE OF BAD THINGS IN THE
CLOSE.
CHARLES: GARY, OF COURSE YOU
LISTEN TO THE MARKETS, YOU WATCH
THEM, SOMETIMES DOESN'T
NECESSARILY MATTER WHAT THE
ANSWER IS.
YOU PAY ATTENTION TO WHAT THE
MARKET IS TRYING TO TELL US.
>> WITH ALL DUE RESPECT, BEFORE
WE RALLIED 1500 POINTS, WE
DROPPED 2,000 POINTS IN NINE 1/2
DAYS.
SO THAT IS THE BIGGER PICTURE.
SO, LOOK, CHARLES, IN FRONT OF
ME I HAVE 600 NEW YEARLY LOWS IN
THE MARKET, WITH NO MAJOR
INDEXES BREAKING LOWS.
ON THIS LIST IS A SLEW OF
CITIGROUPS OR EAST/WEST BANCORP
OR GOLDMAN SACHS THIS IS ALL
TELLING US SOMETHING AT THIS
JUNCTURE.
THIS IS NOT JUST ABOUT WHAT
HAPPENED IN THE LAST MONTH,
MONTH 1/2.
BEFORE MARKETS TOPPED OUT,
MONTHS AND MONTHS AGO.
WE'RE HEARING GERMANY AND JAPAN
ARE CONTRACTING RIGHT NOW.
I THINK SOMETHING IS UP.
THE MAIN STATEMENT I WANT TO
MAKE WE BETTER NOT BREAK THE
LOWS WE HAD OVER LAST TWO OR
THREE WEEKS, IF WE DO, WE'LL
START TALKING WEEKS AHEAD BEAR
MARKET FOR MAJOR INDICES.
I HAVE TO TELL YOU LAST MONDAY I
THOUGHT WE WERE GOING TO HAVE A
RALLY.
I THINK IT WAS COMPRESSED OVER A
FIVE-DAY PERIOD BECAUSE OF FED
BECAUSE OF WHATEVER TRADE
AGREEMENT WE HAD.
NORMALLY USUALLY LASTS A MONTH.
BEARISH WE GO.
SO I THINK WE GOT TROUBLE HERE.
CHARLES: MELISSA?
>> I'M BULLISH ON THE MARKET.
I'M NOT BEARISH.
WE'RE FAR AWAY BREAKING UPTREND
TECHNICALLY SPEAKING.
THE DOW WOULD HAVE TO GAP DOWN,
BREAK 23,000.
THAT COULD HAPPEN.
IT IS UNLIKELY THAT WILL HAPPEN.
I EXPECT ANOTHER BIG SELLOFF
DAY, IT WAS A WEEK AGO, WE
TALKED ABOUT THE RALLY OF FED.
I THOUGHT WE WOULD HAVE A GAP UP
TODAY.
CHARLES: WHAT IS IMPORTANT ABOUT
THE BIG RED DAY?
IS THAT SORT OF A TEST FOR THE
MARKETS?
>> NO.
I THINK IT'S A SHAKEUP.
FOR EXAMPLE, USUALLY HAD THE
RALLY CAME IN THE WITH FED NEWS.
BIG GAP UP PRIDE NIGHT INTO
MONDAY MORNING, DIDN'T HAPPEN
FOR ANY REASON AT ALL BECAUSE
THERE WAS NO AGREEMENT MADE WITH
CHINA ON TARIFFS.
PUTTING OFF WHOLE FOR A LITTLE
MORE PERIOD.
BUT THE MARKET REALLY LOVED
THAT.
THAT WAS THE BIGGEST GAP UP IN
THE S&P GOING BACK AS LONG AS I
CAN IN MY CHARTS SINCE 1999.
THAT WAS NOT NOTHING.
WE HAD A BIG SELLOFF STAY.
VOLATILITY IS HERE TO STAY.
IT IS HERE TO STAY.
CHARLES: VOLATILITY HERE TO
STAY.
WHAT ARE YOU LOOKING FOR
LONG-TERM INVESTOR?
>> IF YOU'RE A LONG TERM
INVESTOR OR DON'T NEED MONEY
RIGHT NOW --
CHARLES: STOCKS THEY SHOULD LOOK
AT?
>> YOU KNOW WHAT?
ULTA, ULTA MADE NEW HIGHS.
ULTA FELL OBVIOUSLY WITH
EVERYTHING ELSE.
ULTA LOOKS GOOD AS A BUY.
I HAVE SELECTIVE FAVORITE LIKE
APPLE.
ALL THESE STOCKS AND MARKETS ARE
STILL HOLDING THE UPTREND.
AMAZON, APPLE, EVEN WALMART
LOOKS REALLY GOOD AFTER THE
SELLOFF.
I'M NOT SAYING BUYING TOMORROW.
WATCH THOSE STOCKS FOR A
TURNAROUND BEFORE OTHER THINGS.
CHARLES: GUYS, I WISH WE HAD