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What Do We Do Monday Morning?, Issue #328 - Markets Vulnerable?
July 14, 2012
Hi <>,

Jul 16, 2012 - Issue #328



Markets Vulnerable?



Markets vulnerable? Warren Buffet: "Europe slipping fast." China slowing down; Middle East a powder keg with the fuse lit. We are 4 months from the most important election in our nation's history. Where does that leave the U.S. markets?

The markets are constantly testing areas of support & resistance. Are the markets afraid of what another 4 years of Obama would do to this country? Why have so many companies moved their incorporation to places like Switzerland? To get away from Obama and the Corruptocrats that support him.

Where does that leave your stocks, 401-K's, IRA's? Even with Obama gone, so much damage has been done. America has much work ahead. Are we up to the task? For the sake of ourselves and our children, we had better be. We dare not end up like Europe, Greece, et al.

Institutional investors hedge their risks using options. Shouldn't you? Many individual investors have made the effort to learn exactly how to do just that by taking online courses from IONOPTIONS Ron Ianieri (myself included). Money well spent.

MarketClub 'Trade Triangle' technology is all about timing. It will keep you from making serious mistakes. Their $8.95 30 day trial lets you explore every weapon in their arsenal of goodies. Learn to anticipate important market signals ahead of the crowd.

MarketClub Primary Trend (monthly algorithms) on DJ-30 stocks:

UP (13) 43%:

AXP, DIS, GE, HD, JNJ, KFT, KO, MRK, PFE, T, TRV, VZ, WMT.

DOWN (17) 57%:

AA, BA, BAC, CAT, CSCO, CVX, DD, HPQ, IBM, INTC, JPM, MCD, MMM, MSFT, PG, UTX, XOM.

Dow Dogs (10 highest yielding):

T, VZ, MRK, PFE, DD, JNJ, PG, CVX, GE, INTC.

Dow Small Dogs (5 lowest priced among the 10 highest yielding):

MRK, T, INTC, PFE, GE.

As of 6/29, corporate stock earnings yields on the S&P 500 (SPY) still above corporate bond yields (7.34% vs. 1.96%) thus favoring corporate stocks over corporate bonds 3.74 to 1. Keep your eye on earnings yields. That's what you're being paid to take risk. Dividend yields are only part of the picture.

IONOPTIONS Ron Ianieri: New Mastering Options course (starting 7/9) to be offered one time only this year (perhaps never again). On-line evening classes will meet 3 times a week for 6 weeks. See IONOPTIONS tab for details.

Romney: "It's about jobs, the economy, and Obama's record!" And now the repeal and replace of Obamacare. Marco Rubio or Allen West for VP (FLA 29 electoral votes).

Countdown till 2012 elections: 16 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?

7/3 Tuesday - Full Moon.

7/19 Thursday - New Moon.

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

7/17 INTC, JNJ, KO.

7/18 AXP, BAC, IBM.

7/19 MSFT, TRV, VZ.

7/20 GE.

7/23 MCD.

7/24 DD, T.

7/25 BA, CAT.

7/26 MMM, UTX, XOM.

7/27 CVX, MRK.

Dow score card for the week ending 7/13/12.

DJ-30: 12777.09 +4.62 +0.04%. The Real World (arithmetical) DJ-30: 56.27 +0.02 +0.04%.

UP: 13, Down: 17.

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

Rising (Generally Higher Highs/Higher Lows) 7 (+3) 23%:

JNJ, KFT, +*MCD, +*MRK, +*PG, +*VZ, WMT.

Consolidating (Generally Lower Highs/Higher Lows) 15 (-11) 50%:

-*AXP, BA, BAC, CVX, DIS, GE, HD, JPM, KO, MMM, PFE, T, TRV, UTX, XOM.

Declining (Generally Lower Highs/Lower Lows) 8 (+8) 27%:

-*AA, -*CAT, -*CSCO, -*DD, -*HPQ, -*IBM, -*INTC, -*MSFT.

+/- 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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