A New Year, but Has Anything Changed?

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.

Happy New Year to all.....well, except for Isaiah Thomas.

There was no recession in Vegas...but it was cold... 30 degrees all week. It is 28 degrees here in Orlando as I write this...with a possibility of snow. Yes...snow! Yup...love that global warming.

Why are a bunch of insiders, including CEO James Cayne, selling about 500,000 shares of Bear Stearns...AFTER the stock has dropped 50% off the highs?

Why are we now hearing of ANOTHER round of losses to be reported by major financial companies? How is it these doofusses can't get their calculators to work?

The Fed has announced new rules to stop predatory lending. You may fill in the punchline of this joke. Think Alfred E. Neuman.

The first day of the year was a big yonk...but has anything really changed? Not for me. Very simply, 70% of the market reamins in a bear market. Those areas are only getting worse. I sincerely hope you have been listening as this report was out front of all the carnage in the bearish areas. I have been constantly asked where I think the Financials would stop the bleeding. While I hate to give targets, I have to make note that it has been my belief and continues to be my belief that there is a lot more to come. When BAC took the position in CFC, I stated CFC was going single digits. I have stated WM was going single digits. I am of the belief we can see CITI in the teens. I believe we can see a publicly traded HOMEBUILDER go bye-bye. I believe we could see 1990 action again in some of the FINANCIALS...and so far, nothing I have seen changes that stance. If the group starts to turn, I will be on it. It just seems something more is lurking out there. You do not get this type of carnage during garden variety events...so hold on to your hats.

In the past few days, I can only describe the action as "the ice is getting thinner!" I am seeing more and more names breaking support levels...and to make matters worse, the charts of the major indices look horrid. I want to give you some vital support areas. If they go...look out. As I have stated, 70% of the market is already in a bear....and a break of these levels will only make matters worse. RUSSELL 2000...734...DOW 10,724...S&P 1435 and then 1406...NASDAQ 2554 and then 2539...NDX 1999 and then 1980.

To add some gas on the flame...the DOLLAR(which I called for a rally a couple of weeks back)has already topped and badly. This has GOLD spiking again. GOLD is very strong here. OIL also cranking again...with a few names breaking out nicely. I can promise that it is not a bullish occurrence when GOLD and OIL are about all that is left as far as leadership. Yes...I do know that SOLARS and FERTILIZERS and some big cap TECH is still working.

Lastly, take a few minutes and scan the DOW 30. You will notice that a few names that have held above the 50 day average...are now breaking that first line of defense. This includes MRK, JNJ, PG, MCD, VZ, HPQ, UTX. Not the greatest of signs.

Gary Kaltbaum