Jan 2, 2012 - Issue #300

2012 Year of Decision

2012 Year of Decision.

Voter fraud on a massive scale, racial/class warfare, massive increases in government regulation through 'Executive Order', attacking conservatives because Obama and the 'Corruptocrats' cannot defend his record. Is that the miserable 'State of the Nation'?

European markets, as of this writing: Declining stocks and energy, rising dollar, precious metals and volatility.

Earnings yields still favor stocks over corporate bond yields by a wide margin.

Solution: Long stocks/ long puts ('married put' strategy). The more attractive the stock, the further out the puts (diagonalyzing) reserving the right to 'morph' into a 'protected collar' by selling covered calls (premium collection) when appropriate.

Objective: Capital appreciation plus dividend income (Total Return) during rising markets, premium and dividend collection during declining markets, all the while enjoying peace of mind made possible by the 'iron clad' protection of your put protection.

Countdown till 2012 elections: 44 weeks.

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?

1/9 Monday - Full Moon.

1/23 Monday - New Moon (Beware!).

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

1/9 AA (4Q2011 'Earnings Season' begins).

1/13 JPM.

Dow score card for the week ending 12/30/11.

DJ-30: 12217.56 -76.44 -0.62%. The Real World (arithmetical) DJ-30: 53.81 -0.34 -0.62%.

UP: 5, Down: 25.

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

Rising (Generally Higher Highs/Higher Lows) 5 (-13) 17%:


Consolidating (Generally Lower Highs/Higher Lows) 25 (+13) 83%:

AA, AXP, -*BA, BAC, CAT, CSCO, -*CVX, DD, -*DIS, -*GE, -*HD, HPQ, IBM, INTC, -*JNJ, JPM, -*KFT, MMM, -*MRK, -*MSFT, -*PFE, -*TRV, UTX, -*WMT, -*XOM.

Declining (Generally Lower Highs/Lower Lows) 0 (N/C) 0%:


+/- 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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