An Ugly Start on Wall Street

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.

"The sea was angry that day my friends, like an old man trying to return soup at a deli."

George Costanza of Seinfeld

Yup...the seas are angry. No need to show charts. Just think New York Knicks...just think Britney Spears' career. That is what the market looks like and is acting like.

Let me be clear. The 70% of the market that was already in a bear market is now being joined by most of the rest. Simple as that...and ultimately, it is going lower. How much? Don't know. But I do believe popular averages have the feel that the 20% bear market threshold will be hit. But even if they do not, the carnage has already been plentiful. But...odds favor, there is more to go.

Do not be fooled by the normal Wall Street rhetoric where everything is ok and everything is either a value or cheap. Bear markets take things down...and usually go farther than expected. Just look at Countrypuke Financial...now near $5. Yes...I will take credit for that call. Next up...CITI in the teens.

BIG BOUNCES lie ahead...any day...any moment. Bounces relieve oversold conditions after ugly drops. I would use these bounces for any additional selling you need to do in the many broken sectors and stocks that are out there.

My next worry is earnings. Look what happened to A T&T when they lowered expectations yesterday. I believe there is a solid chance we are going to hear a lot of that in the next couple of weeks during earnings season. There should be no doubt now that a recession is at hand...and normally, earnings are going to come down...maybe sharply. If you want to know why I know we are in recessionary territory, not only look at the market itself...but also look at what is starting to lead. BEVERAGES, DRUGS, HOUSEHOLD PRODUCTS, UTILITIES, TOBACCO and all the recession resistant areas.

Lastly, I believe the word "change" should now be banished from the English language. I have heard that word several hundred thousand times in the past few days...and it is sickening me. These candidates are acting like we are living in a third world country that needs to be turned upside down. Shame on every one of them.

Gary Kaltbaum