Jul 21, 2008 - Issue #120
Dark Knight! Where are you when we need you??? Don't we have enough Joker's to deal with?
CNBC, perhaps, could pursuade the caped crusader, or a reasonable facimile thereof,
(millionaire Bruce Wayne???) to come to our rescue in our dire moment of need with
some prudent just-in-time financial wisdom.
Perhaps the market's bounce this past week was in anticipation of what turned out to be
the biggest box office bonanza in history.
Which begs the question: Is this a playable bounce? Going long SPY and DIA or writing
the front month Puts to take advantage of the high volatility? MRK has just put in a
'pennant' formation that looks like a coiled spring ready to uncoil. Will the move be
a continuation of the down trend or a reversal to the upside? The stock hasn't seen
these prices since '06.
Dow score card for the week ending 7/18/08.
DJ-30: 11496.57 +396.03 +3.57%. The Real World (arithmetical) DJ-30: 47.07 +1.63 +3.58%.
UP: 25, Down: 5.
Trends (weekly charts): This is the subjective part.
Rising (Generally Higher Highs/Higher Lows) 6 (+4) 20%:
+*C, +*IBM, JNJ, +*JPM, +*MCD, +*PG.
Consolidating (Generally Lower Highs/Higher Lows) 20 (+9) 67%:
AA, +*AIG, +*AXP, +*BA, +*BAC, +*CAT, +*DD, +*DIS, GE, +*GM, +*HD, +*HPQ, +*INTC, MMM,
MRK, +*MSFT, -*PFE, UTX, VZ, WMT.
Declining (Generally Lower Highs/Lower Lows) 4 (-13) 13%:
CVX, KO, -*T, 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!