Oct 26, 2009 - Issue #186



Regime Change



Regime change:

This weekend, I attended a town hall meeting where the main disscussion focused on the pending Obama health care legislation. Two words: Total disaster.

You will be taxed if you do, taxed if you don't, taxed if you would, taxed if you won't. It will raise costs and solve nothing.

The solution: Two words: Regime change. Any politician that votes 'yes', at any point, for this monstrosity will be delt with severely at the polls.

CNBC will be winding down 'earnings season'. Then what? Does the market not look like it is in the process of rolling over? Expect a significant low pivot point to be installed. The question is how far down? Fibonacci retracement and MACD indicator are useful tools. It pays to be aware of where MarketClub's 'trade triangles' will trigger. Take advantage of low VIX where possible.

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?

11/02 Monday - Full Moon.

11/16 Monday - New Moon.

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

10/26 VZ.

10/29 PG, XOM.

10/30 CVX.

11/03 KFT.

11/04 CSCO.

Dow score card for the week ending 10/23/09.

DJ-30: 9972.18 -23.73 -0.24%. The Real World (arithmetical) DJ-30: 43.98 -0.11 -0.24%.

UP: 13, Down: 17.

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

Rising (Generally Higher Highs/Higher Lows) 11 (-6) 37%:

CAT, +*CSCO, HPQ, KFT, MCD, MMM, MSFT, +*PG, +*TRV, UTX, XOM.

Consolidating (Generally Lower Highs/Higher Lows) 16 (+3) 53%:

AA, -*AXP, BAC, -*CVX, -*DD, -*DIS, HD, IBM, -*INTC, JNJ, -*JPM, KO, -*MRK, -*PFE, T, -*WMT.

Declining (Generally Lower Highs/Lower Lows) 3 (+3) 10%:

-*BA, -*GE, -*VZ.

+/- 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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