Aug 31, 2009 - Issue #178



Negative Divergence Continues



Negative divergence continues (MACD). There is something that just doesn't seem right about this market. It goes up but without vigor. Something is missing. No 'umph'.

The much touted Cash for 'Clunkers' is a colossal failure. It seems everyone connected with the Obama administration is really really bad with math! Their arrogance is beyond belief. Japan has shown how to deal with such arrogance... throw the arrogant bastards out of office. People are realizing the last election was a mistake. November 2nd, 2010 will be a date of reckoning.

CNBC wants (needs) something to report. I have a feeling volatility is about to take the spot light. It could get ugly.

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 8/28/09.

DJ-30: 9544.20 +38.24 +0.40%. The Real World (arithmetical) DJ-30: 42.10 +0.17 +0.40%.

UP: 14, Down: 16.

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

Rising (Generally Higher Highs/Higher Lows) 12 (+3) 40%:

+*AXP, +*BA, BAC, +*CVX, DIS, +*HD, +*INTC, +*MSFT, PFE, TRV, UTX, +*XOM.

Consolidating (Generally Lower Highs/Higher Lows) 17 (-4) 57%:

CAT, CSC0, DD, GE, -*HPQ, -*IBM, JNJ, -*JPM, KFT, KO, MCD, MMM, -*MRK, PG, T, VZ, WMT.

Declining (Generally Lower Highs/Lower Lows) 1 (+1) 3%:

-*AA.

+/- 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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