Subscribe



Dec 1, 2008 - Issue #139

Big Nothing

CNBC commentators have the challenging task of filling air time, even when most of the traders have left in the middle of the week for a long holiday weekend. It's their job.

I hope you had the good sense to take the week off, enjoy Thanksgiving, rest up and contemplate the upcoming week as traders return to tend to the business of trading. I have a feeling December is going to be one for the record books. It could get ugly in a hurry.

The problem, from a trader's point of view, is that volatility is so high that there are no cheap options available to hedge with and yet the high premiums may not be high enough to profitably engage in selling strategies. The government is not making it any easier with their arbitrary bail-out maneuvers.

Heads Up

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):

None.

Dow score card for the week ending 11/28/08.

DJ-30: 8829.04 +782.62 +9.73%. The Real World (arithmetical) DJ-30: 36.94 +3.26 +9.69%.

UP: 30, Down: 0.

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

Rising (Generally Higher Highs/Higher Lows) 4 (+4) 13%:

+*CAT, +*CVX, +*MCD, +*XOM.

Consolidating (Generally Lower Highs/Higher Lows) 26 (+16) 87%:

+*AA, AXP, +*BA, +*BAC, +*C, +*DD, DIS, +*GE, GM, +*HD, HPQ, +*IBM, +*INTC, +*JNJ, +*JPM, +*KFT, +*KO, +*MMM, +*MRK, +*MSFT, +*PFE, PG, +*T, +*UTX, VZ, WMT.

Declining (Generally Lower Highs/Lower Lows) 0 (-20) 0%:

None.

+/- denotes change of direction.

* denotes change of category.