Nov 5, 2007 - Issue #083
Chaos reigns after the Fed's Halloween party favors are handed out. Bummer!!!
Trying to please everyone results in pleasing no one.
One thing seems certain. There definitely appears to be an inverse relationship between
the $US and oil. As one goes down, the other goes up.
On CNBC, a Washington panel convenes to ask the question: What does the nation do if oil
goes to $160? A guest oil analyst predicts $300!
An 'infomercial' suddenly appears on Fox-TV, complete with atomic 'mushroom'clouds
exploding in the background, desperately urging all to buy their beautiful, glittering,
expensive gold coins before our paper money becomes worthless!!!
Let's see if I've got this right. We're 'buying', they're 'selling'! Who's making out on
this deal? Duh!
Can you see a possible 'contrary opinion' play at work here?
News, media blitz, all the ingredients of a 'slick' campaign designed to stampede you out
of your money. How many dumb 'boobs' do you suppose are falling for that 'pitch' and
dialing the toll-free '800' number with credit card in hand?
I could be wrong, but a review of the energy sector looks 'toppy' to me. Gold is surging
in a sharp upward parabolic spike, for the moment. These moves tend to end abruptly.
View a weekly chart of GLD, compare the current up move to May '06. Compare USO now to
July '06. Notice any similarities? Is this an upward continuation or a top?
Whatever your decision, utilize good tools and trading tactics to achieve objectives and
Dow score card for the week ending 11/2/07.
DJ-30: 13595.10 -211.60 -1.53%. The Real World DJ-30: 55.75 -0.87 -1.53%.
UP: 7, Down: 23.
Trends (weekly charts): This is the subjective part.
Rising (Generally Higher Highs/Higher Lows) 10 (-1) 33%:
GE, GM, IBM, INTC, KO, MCD, MO, MRK, MSFT, UTX.
Consolidating (Generally Lower Highs/Higher Lows) 11 (-1) 37%:
AA, CAT, DIS, HON, HPQ, JNJ, -*PG, T, VZ, WMT, XOM.
Declining (Generally Lower Highs/Lower Lows) 9 (+2) 30%:
AIG, AXP, BA, C, DD, HD, -*JPM, -*MMM, PFE.
+/- 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!