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Apr 6, 2009 - Issue #157



Pivot Point?



Pivot point intermediate top forming? Could be. Notice how volume has contracted as the Dow advanced like a car going uphill with the gas tank on fumes. Has the Dow meant resistance? Looks like it. Is a test of the 3/6 low in order? Probably. The market is always in the process of searching for pivot points. This is no exception. What we're looking for is an intermediate pivot point to be formed. I believe it's due. Obviously, the 3/26 top was not it, despite the occurance of a new moon.

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?

4/9 Thursday - Full Moon.

4/24 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):

4/7 AA.

4/8 KO, (Transportations) AMR.

4/9 (Transportations) CAL.

4/13 (Transportations) JBHT.

4/14 INTC, JNJ, (Transportations) CSX.

4/15 BA, (Transportations) LSTR, R.

4/16 AXP, JPM, (Transportations) GMT, LUV, YRCW.

4/17 C, CAT, GE.

Dow score card for the week ending 4/3/09.

DJ-30: 8017.59 +241.41 +3.10%. The Real World (arithmetical) DJ-30: 33.55 +1.01 +3.10%.

UP: 25, Down: 5.

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

Rising (Generally Higher Highs/Higher Lows) 19 (-7) 63%:

AA, AXP, CAT, CVX, DD, DIS, HD, HPQ, IBM, INTC, JPM, MCD, MMM, MSFT, PG, T, UTX, VZ, WMT.

Consolidating (Generally Lower Highs/Higher Lows) 11 (+7) 37%:

+*BA, BAC, C, GE, -*GM, -*JNJ, -*KFT, -*KO, -*MRK, PFE, -*XOM.

Declining (Generally Lower Highs/Lower Lows) 0 (n/c) 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!

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