Feb 1, 2010 - Issue #200



State of the Union?



State of the Union?: Obama, Pelusi, Reid and the Progressives are finished.

Anything they do doesn't matter because they won't be around long enough to matter.

Go ahead and try the terrorists in a federal court, instead of a military tribunal, and see what happens in the mid-term elections.

Watching Obama/Pelusi/Reid and the Progressive Corruptocrats is like watching the end of the 'Thelma and Louise' movie as they drive off the cliff. Good riddance.

The November elections can't come soon enough. While they're about it, the voters should purge any 'Progressives' hiding out in the Republican party replacing them with true conservatives that stand by the Constitution.

CNBC continuously asks the question: Is this the time to buy? The answer: No.

PG: Examine the price action of 1/28. Do you see the weakness? This is the kind of candlestick bar that Oliver Velez terms 'The Gift'.

Buy the Feb 65 Puts (3.60)? Sell Call spreads (Feb 65C/Feb 62.50C) for $.46 credit? Both are limited risk trades. In combination, the returns could be interesting. This anticipates the 1/28 high of 63.31 to hold (testing the 11/25 high of 63.48 which also failed).

As of Friday's close, 60% of the DJ-30 components are in declining mode. Continue selling into failing rallies.

The 1/19 DJ-30 high of 10,729.89 is a major top until proven otherwise.

By the way, did you notice the market action leading up to the Full 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?

1/30 Saturday - Full Moon (Watch market action Friday 1/29 & Monday 2/1).

2/13 Saturday - New Moon (Watch market action Friday 2/12 & Monday 2/15).

2/28 Sunday - Full Moon ( Watch market action Friday 2/26 & Monday 3/1).

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):

2/1 XOM.

2/2 KFT.

2/3 CSCO, PFE.

2/9 DIS, KO.

Dow score card for the week ending 1/29/10.

DJ-30: 10067.33 -105.65 -1.04%. The Real World (arithmetical) DJ-30: 44.40 -0.47 -1.04%.

UP: 8, Down: 22.

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

Rising (Generally Higher Highs/Higher Lows) 3 (+2) 10%:

+*BA, +*PG, +*TRV.

Consolidating (Generally Lower Highs/Higher Lows) 9 (+2) 30%:

+*BAC, +*DD, GE, +*HD, +*KO, -*MCD, MRK, PFE, +*WMT.

Declining (Generally Lower Highs/Lower Lows) 18 (-4) 60%:

AA, AXP, CAT, CSCO, CVX, DIS, HPQ, IBM, INTC, JNJ, JPM, -*KFT, MMM, MSFT, T, UTX, VZ, XOM.

+/- 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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