Nov 17, 2008 - Issue #137
Cash is King
Cash is King, definitely.
CNBC guest analysts, with all due respect, seem to think cash is something to get rid of
rather than hold on to. They're constantly urging investors to jump into the market,
despite the fact they've been wrong all the way down from Dow 14,000 last October, with
no end in sight.
Instead, investors should ask themselves why they should be first in. Better to enter
after clear evidence exists that a major bottom has been put in place.
Amarillo Slim, one of the best professional poker players of all time, very eloquently
stated, "Guessers are losers!" Sound advice.
The market knows how to deal with failures and bankruptcies. What it does not know how
to deal with is government bail outs. There is a finality to failure. There is no end
to bail outs, until we are all broke. The 'Too big to fail' concept is a bunch of crap.
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 11/14/08.
DJ-30: 8497.31 -446.50 -4.99%. The Real World (arithmetical) DJ-30: 35.56 -1.87 -4.99%.
UP: 2, Down: 28.
Trends (weekly charts): This is the subjective part.
Rising (Generally Higher Highs/Higher Lows) 0 (-3) 0%:
Consolidating (Generally Lower Highs/Higher Lows) 15 (-7) 50%:
AA, CAT, CVX, HD, JPM, KO, MCD, -*MMM, MRK, PG, -*T, UTX, -*VZ, WMT, XOM.
Declining (Generally Lower Highs/Lower Lows) 15 (+10) 50%:
-*AXP, -*BA, BAC, C, -*DD, -*DIS, -*GE, GM, -*HPQ, -*IBM, -*INTC, JNJ, -*KFT, MSFT, -*PFE.
+/- 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!