Aug 24, 2009 - Issue #177



Negative Divergence



Negative divergence (MACD) is present as the DJ-30 rises. It appears to be wide spread.

CNBCs Kudlow Report had Doctor Bob Frolich (my favorite contrary indicator, given his track record), bullish as usual.

Dare we look forward to a sweeping change of government after the November 2010 elections à la 1994?

We need an administration that favors capital formation rather than leftist socialism. We need a tax system that rewards, rather than punishes, success. Give us that, then get out of the way. America knows what to do.

In the meantime, become as knowledgeable as possible in the art of 'synthetic Option' techniques. They are the best 'tools' available to all market participants.

Take advantage of low volatility whenever market conditions permit (like now?). It's cheap insurance.

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?

9/4 Friday - Full Moon.

9/18 Friday - New Moon.

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):

None.

Dow score card for the week ending 8/21/09.

DJ-30: 9505.96 +184.56 +1.98%. The Real World (arithmetical) DJ-30: 41.93 +0.81 +1.98%.

UP: 28, Down: 2.

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

Rising (Generally Higher Highs/Higher Lows) 9 (+3) 30%:

BAC, +*DIS, HPQ, +*IBM, JPM, +*MRK, +*PFE, +*TRV, UTX.

Consolidating (Generally Lower Highs/Higher Lows) 21 (-1) 70%:

-*AA, AXP, BA, CAT, CSC0, CVX, DD, GE, HD, INTC, JNJ, KFT, +*KO, MCD, MMM, MSFT, PG, T, VZ, -*WMT, +*XOM.

Declining (Generally Lower Highs/Lower Lows) 0 (-2) 0%:

None.

+/- 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!

Two Paths to Financial Independence

1. Own your own successful business.

2. Own a piece of someone else's successful business.

... Billionaire J. Paul Getty, founder of Getty Oil.

Attraction Marketing

RadioActiveTrading

Every business needs to advertise...

Building on a Budget

“I’d rather have 1 percent of 100 people’s efforts, than 100% of my own.” ... J. Paul Getty, founder of Getty Oil.

Expanding Your Business