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Jan 5, 2009 - Issue #144



Back to Work



Back to work, now that everyone is back from their holiday vacation.

CNBC spokespersons, one in particular, is so desperate for an up market that he grasps at any straw to back up his assertions, ignoring anything to the contrary. Wouldn't you love to be able to get this guy into a poker game?

Everything that has transpired (marketwise) during the previous two weeks is meaningless because of the lack of volume. Volume measures the 'sincerity' behind a price movement. When this was pointed out to him, his response, "So what?". One wonders how such people manage to keep their jobs, let alone get hired in the first place.

What will be meaningful, in my judgement, is the various markets reaction to what is taking place in the Middle East. Surely, the 'Volume' will speak 'Volumes' (Pun intended).

An old Wall Street adage states, 'As goes the first full week of the new year, so goes January. As goes January, so goes the year'. It certainly held true for '08. Behold, the first full week of '09 is at hand.

Heads Up

W. D. Gann, a keen market observer, although not an astronomer, nevertheless, was fascinated by the apparent coincidence of important market 'pivot points' and astronomical dates. Theories exist for estimating time and price of important market turning points but astronomical occurrences are computed with mathematical certainty.

There is no logical reason why these occurrences should coincide yet, empirically, they have. The 'Full Moon' and 'New Moon', among others, have been cited. Therefore, one might be well advised to be aware of their occurrence. Note: The first 5 business days of 2008 concluded on a 'New Moon' and we all know how that worked out. Coincidence?

1/10 Saturday - Full Moon. Observe market action on Friday 1/9 and Monday 1/12.

1/26 Monday - New Moon.

During the next two weeks, the following Dow components report earnings. Keep a sharp eye out for possible price swings leading up to 'earnings day' (Subject to revision):

1/8 CVX.

1/12 AA.

1/14 JPM, (Transportations) AMR.

1/15 INTC, (Transportations) GMT.

1/16 CAT, (Transportations) CAL.

Dow score card for the week ending 1/2/09.

DJ-30: 9034.69 +519.14 +6.10%. The Real World (arithmetical) DJ-30: 37.81 +2.17 +6.10%.

UP: 29, Down: 1.

Trends (weekly charts): This is the subjective part.

Rising (Generally Higher Highs/Higher Lows) 9 (+8) 30%:

+*AA, +*BA, +*CAT, +*IBM, +*JNJ, +*MCD, MRK, +*PFE, +*UTX.

Consolidating (Generally Lower Highs/Higher Lows) 21 (-6) 70%:

+*AXP, +*BAC, C, CVX, DD, DIS, GE, GM, HD, HPQ, INTC, JPM, KFT, KO, MMM, MSFT, PG, T, VZ, WMT, XOM.

Declining (Generally Lower Highs/Lower Lows) 0 (-2) 0%:

None.

+/- denotes change of direction.

* denotes change of category.





Comments? Ideas? Feedback? Let me have it, right between the eyes! I'd love to hear from you. Just reply to this zine and tell me what you think!

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