Apr 4, 2011 - Issue #261



Danger, Will Robinson!



Danger, Will Robinson!

CNBC & Fox News has many guest contributors 'preaching' up markets, buy and hold, stay the course, etc., etc., ad nauseam.

Democrat strategists keep 'selling' the Party line and would have us all believe Obama is assured re-election; that no one can possibly compete against him. If what they say is true, then they have nothing to worry about, do they? They should keep telling themselves that; right up to the 2012 elections. Never mind his approval ratings are tanking. Is Hillary distancing herself?

The country is in serious trouble. Republicans insist on cutting spending back to 2008 levels. Dems and Unions are having none of it. Calls to 'give back Obamacare funding' or shut the government down are deafening.

Astronomy notices when celestial bodies align themselves when viewed from Earth and their effects upon stock and commodities markets.

Have you noticed how 'significant' trendlines on monthly, weekly and daily charts of the major indexes are all superimposing themselves in a straight row? How often does that happen?

MarketClub's algorithms (lowest low of the last 3 months, 3 weeks) are all converging on the same levels.

What this means is that if these levels are penetrated, every time frame (daily, weekly, monthly) will all be flashing 'Sell' signals simultaneously! You think traders aren't going to notice?

Countdown till 2012 elections: 83 weeks.

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?

4/3 Sunday - New Moon (Observe market performance Friday and Monday).

4/17 Sunday - Full Moon (Observe market performance Friday and Monday).

During the next two weeks, the following DJ-30 components report earnings. Keep a sharp eye out for possible price swings leading up to 'earnings day' (Subject to revision):

4/11 AA.

4/13 JPM.

4/15 BAC.

Dow score card for the week ending 4/1/11.

DJ-30: 12376.72 +156.13 +1.28%. The Real World (arithmetical) DJ-30: 54.51 +0.69 +1.28%.

UP: 23, Down: 7.

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

Rising (Generally Higher Highs/Higher Lows) 15 (+7) 50%:

AA, BA, CAT, CVX, +*DD, +*HD, +*KO, +*MMM, +*MRK, PFE, +*PG, T, +*TRV, +*UTX, VZ.

Consolidating (Generally Lower Highs/Higher Lows) 14 (-7) 47%:

-*AXP, +*BAC, CSCO, DIS, GE, HPQ, IBM, JNJ, JPM, KFT, MCD, MSFT, WMT, XOM.

Declining (Generally Lower Highs/Lower Lows) 1 (N/C) 3%:

-*INTC.

+/- 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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