Jun 29, 2009 - Issue #169

EK Explodes!

EK explodes to the upside! Wow! Double Wow! An incredible 33 million share day! That's a lot of stock. Way above recent normal volume. Somebody wanted to buy a lot of stock in a hurry. What do they know that we don't? The previous day, it looks like a 'search and destroy' mission gunning stops. Picking off low hanging fruit. Friday, the buying started in earnest right out of the gate. Looks like some profit taking at the end of the day. Have they shot their load or is there more where that came from? I would look for a pullback to see where support comes in.

CNBC, along with everyone else, was preoccupied with the Michael Jackson and Farrah Fawcett news and the House vote on Cap and Trade.

Meanwhile, back at the Dow, the market seems to continue working on the 'right shoulder' of an inverted head-and-shoulders formation.

Approaching the 4th of July weekend, expect traders to leave town early. When they return, the 'earnings' season will kick off on 7/8 with AA reporting on Q2.

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?

7/7 Tuesday - Full Moon.

7/21 Tuesday - New Moon (Visible 2 days).

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):

7/8 AA, (Transportations) AMR.

7/9 UTX, CVX.

Dow score card for the week ending 6/26/09.

DJ-30: 8438.39 -101.34 -1.19%. The Real World (arithmetical) DJ-30: 37.22 -0.45 -1.19%.

UP: 12, Down: 18.

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

Rising (Generally Higher Highs/Higher Lows) 1 (-2) 3%:


Consolidating (Generally Lower Highs/Higher Lows) 16 (-4) 53%:

AA, BAC, CAT, +*DD, HD, -*HPQ, INTC, -*JNJ, +*JPM, +*KFT, +*MRK, -*MSFT, PFE, +*PG, T, +*WMT.

Declining (Generally Lower Highs/Lower Lows) 13 (+6) 43%:

-*AXP, -*BA, -*CSCO, -*CVX, -*DIS, GE, -*IBM, -*KO, -*MCD, -*MMM, -*TRV, -*UTX, -*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!

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