Galt Stock

Independent Investment Research for IRA’s and 401K’s

Dec 5, 2008 

The market is caught in a tight trading range.  Up and down, not just in days, but in hours.  New unemployment figures were released today.  There were 533,000 people laid off in November.  The talking heads did not know what to say.  Armageddon in the jobs report and the markets went up, for a while, then went down, then up again.  This was the eleventh month of rising unemployment, with the rate now at 6.7 percent. 

I think the market is getting ready to have a dramatic rally that could go as high as 10,000 or 10,500 on the DOW.  I am an amateur chartist, and a bad fortuneteller, but if you look at the DOW or SP500 charts, the markets are range bound.  A breakout is coming, and when the market overlooks bad news, it means the buyers are back.  They are tentative now, but greed will overtake the retail market when the bandwagon starts to take off.  Nobody wants to be left behind.  The DOW encounters resistance at 8800; if we can break through that level, the steam pressure will build pushing the market to 10,000.  This should allow you to sell out of many older positions at a profit, go to cash, and get ready to buy in on the dip that will surely follow.  If you want to do some short-term trades on this rally I have listed new 300% ETF’s, these give you leverage to amplify your gains or losses.  They are not for the faint of heart.  I have played them for the last two weeks with some success. 

                BULL         BEAR                  DESCRIPTION 

               BGZ             BGU                     Russell 1000 

               TZA             TNA                     Russell 2000 

               ERY             ERX                     Russell 1000 Energy 

               FAZ             FAS                      Russell 1000 Financials 

Have a good weekend.  Get ready for next week. 

WARNING:    The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it’s your money.  If you lose it, it’s your responsibility, not ours or your grandmothers!  The editor may or u amay not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future

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