Gary Kaltbaum is an investment advisor with over 18 years experience, and a Fox News Channel Business Contributor. Gary is the author of The Investors Edge. Mr. Kaltbaum is also the host of the nationally syndicated radio show "Investors Edge" on over 50 radio stations. Gary is also editor and publisher of "Gary Kaltbaum's Trendwatch"...a weekly and monthly technical analysis research report for the institutional investor. If you would like a free trial to Gary's Daily Market Alerts click here or call 888.484.8220 ext. 1.

We couldn't help but alert you to two great articles out of The New York Times. The first by Gretchen Morgenson talks about Fannie Mae and all the criminal activity that went on. We have several questions when it comes to Fannie Mae. We know there was a $10 billion fraud but...where are the perp walks? Where are the handcuffs? Where's the jail time? Where's the media? We will tell you where...nowhere! Everyone seems to be taking a dive on this one because of the well-connected personalities. Ladies and gents...there is not a level playing field in corporate America. The second was written by Joe Nocera. He talks about Home Depot turning a deaf ear and a blind eye to their shareholders....and after reading the article, we agree. Five years and $245 million...that's how long Robert Nardelli has worked there...and that's how much he has taken in from the company in pay.

Disgusting...ridiculous...outrageous...over the top...ludicrous. And after reading what Mr. Nardelli did at the recent shareholder's meeting, we believe Hugo Chavez would be a step up. We do not like dictatorships at Investors Edge...and Home Depot is getting close to it. You will not see us investing one of our hard earned dimes in this company until things change.

Bernanke apologizes. Says he won't have loose lips any more...and since...

Bernanke announces that long-term inflation expectations well contained...the same day another Fedhead says they have to start worrying about inflation. Ladies and gentlemen, I repeat...this Fed is eventually going to cause a severe dislocation in the markets with their ridiculously loose lips. Mark this down.

The DOW...which has held up best in this recent carnage, held right near the 11,039 support that held in April. We have told you that in downturns, the DOW will always hold up best.

Look where the S&P just put in a near-term low...right at MAJOR support at 1245. You can draw a line at 1245 going all the way back to 7/28/05 and see that's where the S&P broke out from...where the S&P bottomed on Jan 3 and where the S&P just held. This is normal to bounce off such important support the first time.

The big problem remains the NASDAQ and NDX. They lead up and lead down. Both remain way below their longer term moving averages with the NDX much weaker than the NASDAQ. Until we get some leadership here, we question what the market can do.

It is no help that the SOX continues to go no place fast. The SOX has been a great indicator in the past. We will always watch this closely and right now, nothing doing.

A big part of Thursday and Friday's moves were the COMMODITY areas. They were also overdue as their recent drubbing was unprecedented. We suspect they are going to continue to trade violently with daily gaps to the upside and downside. Most of the COMMODITY STOCK charts are gross and need some work repairing the damage. This includes GOLD and GOLD STOCKS. GOLD has now pulled back near its 50-day moving average...where it will be important to hold. GOLD STOCKS continue to under perform the metal...and badly.

We would like to give the recent bounce the benefit of the doubt but believe this latest bounce is nothing to write home about. It was overdue and came out of weakness...not strength. We suspect there is going to be more work to do as this bearish action continues to show its face...and until we say otherwise, rallies and bounces will be sellable. Yes, we are seeing some better action in areas like the BIOTECHS but we really don't trust anything right now. Caution remains warranted.