In Market Related News, Giants Win!

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.

GIANTS! GIANTS! GIANTS! GIANTS! GIANTS! GIANTS! GIANTS! GIANTS! GIANTS! GIANTS! GIANTS! GIANTS!

I take back all the bad things I said and thought about Eli Manning during this season. If you are a Giants fan like I am, you know how I feel right now. Just hearing my father scream on the other side of the phone was enough for me. How the heck did Tyree catch that ball? That was divine intervention! The other side of this great game was that my family had season tickets for the Dolphins the year of 17 and 0. I still remember each week of the 80,010 people at the Orange Bowl every game that season. I gather the champagne was flowing at the houses of Czonka, Kiick, Morris, Mandich, Griese, Shula and the rest of that great team. Ok...I am done. GIANTS! GIANTS! GIANTS!

Hillary Clinton said Sunday she might be willing to garnish the wages of workers who refuse to buy health insurance. Did you hear that? Government garnish wages because government now mandates to you what you can do with your life? This is the person you want to vote for? Why not just bring Castro or Hugo Chavez to run the country? I know how you Clinton lovers feel about Bush...but you had better take a step back and think about the Marxist economic policies of this candidate. Yes...I said Marxist! $5,000 to each baby...take money away from oil companies...surtaxes on the "privileged few." What next?

As a follower of the Oneil principles of investing, I can understand why they refused to call the recent strong day on heavy volume NOT a follow through day. (A follow through day turns the market from a downtrend into a confirmed rally.) I have seen where in the past that a 1% move was considered...then changed to 2%...then 1.7%. But there is another consideration to this important characteristic for turning the market up...and that is the other half of the equation...leading stocks breaking out of sound bases of decent length. The other part of the equation is toast right now. I cannot find even a handful of growth stocks that fits the bill. So we remain in what I call no man's land...where the market has been rallying but rallying all the bear market areas....the ones I pointed out to you almost 2 weeks ago off the fed steroids. The steroids the fed injected are simply unprecedented...1.25% in a week's time...even though they say there isn't any recession. HMMM! Because of this, everything interest-rate sensitive is on the run...well, at least they are recovering some of their crash. HOUSING, BANKS, BROKERS, LENDERS have all got the kick in the pants. If you have held onto these pigs, you may want to send a thank you letter to uncle Ben.

If the current rally is a meaningful one...and is going to get legs, then we will start to see more and more stocks set up and start to break out. I will be glad to give it every chance. I do realize that every major index remains under heavy resistance as well as all moving averages...so there is work to do. If this is nothing more than a bear market rally, I expect it to start puking in the next couple of weeks as we will start to see distribution days show up.

Sector-wise, I think you can now add the awful SEMICONDUCTORS that will join the contratrend rally group as the group finally starts to rally off its lows back up into declining moving averages. I think oil may also try...and add CHINA/SHANGHAI to the list that I think can start bouncing. I also make note that I think GOLD/SILVER are about to pull back into their rising moving averages.

Did I tell you the Giants won the Super Bowl? And they didn't even have to videotape the other team!

Gary Kaltbaum