Jul 5, 2010 - Issue #222

Does Not Look Good

Does not look good. Dow score card shows 22 out of 30 components in declining trend. That's 73%. Many have put in significant declining trend lines on their weekly charts. You will see the same in the SP-500.

CNBC need not ask if we are in a declining market. The question is: How far down do we go and when will it stop? Good questions. Wish I knew the answer.

Obviously, PFE wasn't a buy. Thank God for Puts.

Awhile back, if you recall, I made a Trident swing trade target calculation that estimated AA might decline to 9.80. Did you notice this week's low? 9.81. Not too shabby.

Where do we go from here? IMO, all rallys should be seen as opportunities to get short.

Welcome to 'American Socialism' folks. You voted for him. You know what has to be done, come November.

Just like trading: Cut your losses short, let your profits run. Amen.

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?

7/11 Sunday - New Moon (Observe market action Friday & Monday).

7/25 Sunday - Full Moon (Observe market action Friday & Monday).

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):

7/12 AA.

7/13 INTC.

7/15 JPM.

7/16 BAC, GE.

Dow score card for the week ending 7/2/10.

DJ-30: 9686.48 -457.33 -4.51%. The Real World (arithmetical) DJ-30: 42.66 -2.09 -4.67%.

UP: 1, Down: 29.

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

Rising (Generally Higher Highs/Higher Lows) 0 (-3) 0%:


Consolidating (Generally Lower Highs/Higher Lows) 8 (-11) 27%:


Declining (Generally Lower Highs/Lower Lows) 22 (+14) 73%:

-*AA, -*BAC, CSCO, -*CVX, -*DD, -*DIS, GE, HD, -*HPQ, -*IBM, -*INTC, -*JPM, -*KFT, KO, -*MCD, MSFT, -*PFE, PG, -*T, -*VZ, WMT, X0M.

+/- 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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