Halloween Party at the Fed!

Despite the frantic activity due to 3Q 'earnings' reports, the market seems to be marking time until the results of the FOMC meeting are known on Halloween.

What then? The market will move up or down... probably big time. How should we play it? If the volatility is low enough, buy straddles now. Otherwise, be prepared to put on positions as markets break out. If the break should be to the downside, be prepared to get out or go short.

Speaking of which, HON is looking suspiciously like a 'short' candidate.

Dow score card for the week ending 10/26/07.

DJ-30: 13806.70 +284.68 +2.11%. The Real World DJ-30: 56.62 +1.17 +2.11%.

UP: 25, Down: 5.

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

Rising (Generally Higher Highs/Higher Lows) 11 (N/C) 37%:

GE, GM, IBM, INTC, KO, MCD, MO, MRK, +*MSFT, +*PG, UTX.

Consolidating (Generally Lower Highs/Higher Lows) 12 (N/C) 40%:

AA, CAT, DIS, HON, -*HPQ, JNJ, JPM, MMM, T, VZ, WMT, -*XOM.

Declining (Generally Lower Highs/Lower Lows) 7 (N/C) 23%:

AIG, AXP, BA, C, DD, HD, PFE.

+/- denotes change of direction.

* denotes change of category.