SEC= Securities Elevation Commission

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.

"Lets stop the speculators from bidding up oil...but let's also stop the speculators from bidding down the financials."

Read that last line twice... maybe three times. Are we now in a world where if the scum that ran the financial companies into the ground are not happy with the way an investment is going, you just lobby the government and entrust the regulators to fix it? Why aren't the regulators now going after the speculators that lifted the financials this week as well as the speculators who sold the oil this week? Oh yeah, because that does not suit their purpose. That does not fit their agenda. The agenda is to have financial stocks go up and oil prices go down. Forget free markets. Let's plug the markets up with our scare tactic rhetoric and "new" regulations. Ladies and gentlemen, this is the mother of all market manipulations... brought to you by so-called free market people. But it is only a free market for them when things are going right for them. When things are going wrong for them, pull out the hammer and blame others. Use your bully pulpit to socialize your losses. Why aren't the free market people yelling and screaming about this? Why isn't anyone lambasting the people at Goldman Sachs? After all, last year, they shorted the hell out of the mortgage market while they were selling mortgage products. Where were the regulators on Friday when someone floated a rumor that FCX would be bought by RIO? FCX ramped 9 points in minutes. Why aren't these people beside themselves over this blatant attempt to pop a stock to the upside? When I told you last year about the "rumors of the day" during the private equity (leverage buyout) boom... and stocks were lifted out of nowhere... why didn't anyone complain then? Again... because it does not fit the agenda. So... let me get this straight, when these people do not like which way a certain investment is going, are they just going to talk it and regulate it the way they want? Is this what we will be dealing with going forward? Is anyone not teed off about this?

I do not recognize the market world I am living in... a world of total and unadulterated hypocrisy. A world where business people who made billions and billions of dollars because of free markets... now want manipulated and government controlled markets because of the bad bets they made. This is disgusting, and for anyone that is a free market proponent, it is a wake-up call that none of us has any control of. This is no longer crony capitalism - this is crony socialism. We can rant, we can yell, we can scream, but no one is listening because the guilty are being propped up by their friends... and it is not even hidden anymore. It is self evident for all of us to see, but supposedly, for the greater good, these too-big-to-fail companies have to be saved. In my world, if you make bad bets, you lose and if need be, you go out of business and let someone else come to fill the void of your stupidity. In the world we are watching, you can hide losses just like ENRON and not be called an ENRON. In this world, you can commit fraud and run Fannie Mae (FNM | Quote | Chart | News | PowerRating) into the ground, take tens of millions in salaries... and get no comeuppance. In this world, you can run major financials institutions into the ground and still leave with hundreds of millions in pay packages. In this world, you can do all this and then be asked to be on the committee to fix the problems you created. The Wall Street Journal said it best this weekend with the article titled Why No Outrage! Why? Because everyone is well connected. In a nutshell, the people that caused the problem, oversaw the problem, were supposed to regulate the problem, enabled the problem, did nothing about the problem... and are now the ones to come up with the solution to the problem!

Other thrilling thoughts:

Question to George Bush: "When do you think the economy will get better?"

Answer by George Bush: "I am not an economist!"

Gee... that makes me feel better.

House Speaker Nancy Pelosi says she does not plan to permit a vote to lift a ban on offshore oil drilling.

She doesn't think more supply will help.

Gee... that makes me feel better.

Please watch Senator Jim Bunning question Hank Paulson. You will now see why I have given Uncle Hank the nickname: "Mumbles!" You remember Mumbles from Dick Tracy. Yes... when you don't have a clue... you just mumble.

Despite the earnings miss, Google (GOOG | Quote | Chart | News | PowerRating) continues to be loved by analysts. In fact, only one firm downgraded the stock today while slashing its target to $550 from $650. According to Thompson Reuters, this leaves 30 analysts with buy ratings / 4 with holds and none have a sell rating. Also, the average target price is $658 (or roughly 177 points higher than the current price) with one target as high as $819.

And oh yeah, the market... a lot of reiterations:

The market has finally rallied some after a nauseating drop from the May 19th high. To say the market was overdue is an understatement. What you need to know is that the reason the market rallied was because things were about as far stretched and extended to the downside as you would ever see. The news out of the government just gave things the impetus... especially the FINANCIALS... which were most definitely in short covering mode. I suspect we will start to see a little backing and filling in the major indices before attempting to move higher into resistance/moving averages... and yes, I do think we can see some more upside testing. Do keep in mind, we still have not seen a follow-through day which would turn the market back into a confirmed rally. The more important part of the equation remains the sector analysis I have covered for you as just about all the set ups I have been telling you about are now coming to fruition.

Regardless of the better action in the indices this past week, COMMODITY areas continue to worsen. Please check out my July 3 report when I told you the action of July 2 was a major sell signal for the commodities. Very simply, whenever a group is in a bull market... and has a huge down day on its highest volume ever... you had better watch out. On that day, the big money crowd has changed their tune.

This includes COAL, STEEL, OILS, ENERGY and even the almighty FERTILIZERS are suspect here. COMMODITIES are now a bit oversold so a bounces could happen at any time... but a new trend is in.

The big-cap NASDAQ-types continue to come under pressure. I told you recently that they have looked to have topped badly and would avoid. Research in Motion (RIMM | Quote | Chart | News | PowerRating), Baidu.com (BIDU | Quote | Chart | News | PowerRating), Priceline.com (PCLN | Quote | Chart | News | PowerRating), Amazon.com (AMZN | Quote | Chart | News | PowerRating), Google (GOOG | Quote | Chart | News | PowerRating) and even Apple (AAPL | Quote | Chart | News | PowerRating) now rolling over. AAPL does report this week. Just notice that on Friday, the NASDAQ was down big numbers while the DOW was up 50. GOOG and Microsoft (MSFT | Quote | Chart | News | PowerRating) were the culprits.You must also remember that for the past year, I have been telling you that these few stocks had led the NASDAQ to new highs... and all it would take was a few names to top... and bye-bye.

I continue to like the TRUCKERS. As I have said, they held tight when OIL was $150 and broke out as soon as OIL PRICES topped for the near term. Need pullbacks in names like ODFL, WERN, ABFS, JBHT.

I continue to like HEALTHCARE...especially BIOTECH. I started to see the set-up 2-3 weeks ago and now the move is starting to get a little wind at their back.

The one area I thought would break out but has now failed is the UTILITIES. There were very goos set ups in names like Entergy Corp. (ETR | Quote | Chart | News | PowerRating), FirstEnergy (FE | Quote | Chart | News | PowerRating), FPL Group (FPL | Quote | Chart | News | PowerRating) and others but instead of breaking out to the upside, they broke down as the BOND MARKET has started to top again. Speaking of BONDS, the longer something takes to top... and then tops, the bigger the move down. BONDS have been topping for about 7 months... so any major breakdown means higher rates are coming.

Disclaimer: The opinions expressed herein are those of the writer and may not reflect those of Wunderlich Securities, Inc. or any of its affiliates. The information herein has been obtained from sources believed to be reliable, but we can not assure its accuracy or completeness. Neither the information or any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results.