Feb 9, 2009 - Issue #149
Strong enough? Perhaps. If you bought Puts, you can now buy stock with impunity because you
already have your insurance in place. If not, you can buy Calls for limited risk and
unlimited upside potential while able to instantly 'morph' into synthetic Puts by
shorting stock if necessary.
CNBC should be asking why is the market showing strength? Is it because the Senate is unable to
gather the required 60 votes to pass the biggest spending plan in history? Is the market
betting against the proposed legislation? What does the market know that we don't? What is
the market up to? By the way, have you noticed Monday is a full moon? How strange.
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?
2/9 Monday - Full Moon.
2/24 Tuesday - 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):
Dow score card for the week ending 2/6/09.
DJ-30: 8280.59 +279.73 +3.50%. The Real World (arithmetical) DJ-30: 34.65 +1.17 +3.49%.
UP: 23, Down: 7.
Trends (weekly charts): This is the subjective part.
Rising (Generally Higher Highs/Higher Lows) 6 (+5) 20%:
+*CVX, IBM, +*INTC, +*JPM, +*MRK, +*XOM.
Consolidating (Generally Lower Highs/Higher Lows) 17 (-4) 57%:
+*AA, AXP, BA, C, +*CAT, +*DD, HD, HPQ, JNJ, KO, MCD, +*MSFT, +*PFE, T, UTX, VZ, +*WMT.
Declining (Generally Lower Highs/Lower Lows) 7 (-1) 23%:
-*BAC, -*DIS, -*GE, GM, -*KFT, -*MMM, PG.
+/- 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!