Dec 8, 2008 - Issue #140
Impressive? Yes, at least on Friday's performance. After being pounded by some really
nasty news to start off the session, it rose like 'Rocky' coming off the mat. Any market
that shakes off bad news must be respected.
CNBC's crew, along with everyone else, didn't know what to make of it all except to
wonder if the long anticipated bottom was finally here. It seems too pat.
Authoritative guests made strong pitches for 'junk' bonds rather than equities. Government
bonds are at historicly low yields. Do you really think locking in low interest rates is
the way to go? I don't.
Cash is King. Keep liquid. If, as, and when a bottom gets put in, there will be plenty of
time to get aboard.
After Friday's strong performance, if the recent lows give way, it will be emotionally
devastating. Then the bottom will come.
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):
12/18 FDX (Transportations).
Dow score card for the week ending 12/5/08.
DJ-30: 8635.42 -193.62 -2.19%. The Real World (arithmetical) DJ-30: 36.14 -0.80 -2.16%.
UP: 10, Down: 20.
Trends (weekly charts): This is the subjective part.
Rising (Generally Higher Highs/Higher Lows) 4 (n/c) 13%:
+*HD, MCD, +*VZ, +*WMT.
Consolidating (Generally Lower Highs/Higher Lows) 26 (n/c) 87%:
AA, AXP, BA, BAC, C, -*CAT, -*CVX, DD, DIS, GE, GM, HPQ, IBM, INTC, JNJ, JPM, KFT, KO,
MMM, MRK, MSFT, PFE, PG, T, UTX, -*XOM.
Declining (Generally Lower Highs/Lower Lows) 0 (n/c) 0%:
+/- 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!