Dec 19, 2011 - Issue #298



Dow Forming Double Top?



Dow forming double top? Have most professional traders already closed their books on 2011?

CNBC & Fox News (FNC), again, as usual, are asking everyone: What should investors do now? Again, not one analyst/advisor/portfolio manager has mentioned the 'married put' strategy as the foundation of an investing strategy. Why not? Why does Wall Street fear investors adopting this strategy?

GE is currently trading just under the declining 'highest high of the last 3 months'. That means soon the 'highest high' of the last 3 months, last 3 weeks, and last 3 days will be the same price. Any move above that will signal a major change in the primary, weekly, and daily trends in the MarketClub 'Trade Triangles' from down to up. Some would consider that significant.

Countdown till 2012 elections: 46 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?

12/10 Saturday - Full Moon (Observe market action Friday & Monday).

12/24 Saturday - New Moon (Beware! Observe market action Friday & Monday).

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

None.

Dow score card for the week ending 12/16/11.

DJ-30: 11866.39 -317.87 -2.61%. The Real World (arithmetical) DJ-30: 52.26 -1.40 -2.61%.

UP: 8, Down: 22.

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

Rising (Generally Higher Highs/Higher Lows) 7 (-6) 23%:

GE, +*MRK, +*MSFT, PFE, PG, +*TRV, VZ.

Consolidating (Generally Lower Highs/Higher Lows) 20 (+4) 67%:

AXP, -*BA, BAC, CSCO, CVX, DIS, -*HD, -*HPQ, -*IBM, -*INTC, JNJ, -*JPM, -*KFT, KO, -*MCD, MMM, T, UTX, WMT, -*XOM.

Declining (Generally Lower Highs/Lower Lows) 3 (+2) 10%:

-*AA, -*CAT, DD.

+/- denotes change of direction.

* denotes change of category.





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