Feb 15, 2010 - Issue #202



Caterpillar (CAT) Sell?



Caterpillar (CAT) Sell?

Failing rally? 200ma (weekly chart) rolling over. 1/11 high 64.42 is a major top until proven otherwise.

Stock is bumping up against 40ma. We could be witnessing the forming of a lower high which would be significant.

CNBC, understandably, prefers bullish opinions. Successful traders are 'agnostic' when it comes to forecasting. They just look at the numbers and act accordingly.

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?

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):

2/16 KFT, MRK.

2/17 HPQ.

2/18 WMT.

2/23 HD.

Dow score card for the week ending 2/12/10.

DJ-30: 10099.14 +86.91 +0.87%. The Real World (arithmetical) DJ-30: 44.54 +0.38 +0.87%.

UP: 20, Down: 9, N/C: 1.

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

Rising (Generally Higher Highs/Higher Lows) 1 (n/c) 3%:

+*HD.

Consolidating (Generally Lower Highs/Higher Lows) 25 (+10) 83%:

AA, AXP, BA, +*CAT, CSCO, +*CVX, DIS, +*GE, HPQ, IBM, INTC, +*JNJ, +*JPM, KFT, +*KO, -*MCD, +*MMM, +*MRK, +*MSFT, +*PFE, PG, TRV, +*VZ, WMT, XOM.

Declining (Generally Lower Highs/Lower Lows) 4 (-10) 13%:

BAC, -*DD, T, UTX.

+/- 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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