Jan 16, 2012 - Issue #302

European Sovereign Debt Downgraded

CNBC asked Victor 'Trader Vic' Sperandeo on NYSE floor his view of the market: (1) Short the Euro. (2) Buy stocks starting in May. Why? It's an election year. Obama has angered so many people, he couldn't get elected 'dog catcher'. What if Obama wins? The market goes down... alot.

Dow Dogs (10 highest yielding): T, VZ, MRK, PFE, GE, JNJ, DD, INTC, PG, CVX.

Dow Small Dogs (5 lowest priced of the 10 highest yielding): MRK, T, INTC, PFE, GE.

Countdown till 2012 elections: 42 weeks.

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?

1/9 Monday - Full Moon.

1/23 Monday - New Moon (Beware!).

During the next two weeks, the following DJ-30 components report earnings. Keep a sharp eye out for possible price swings, up or down, (possible trading on 'inside information') leading up to 'earnings day' (Subject to revision):

1/19 AXP, BAC, IBM, INTC.

1/20 GE.

1/24 DD, JNJ, MCD, TRV, VZ.

1/25 BA, UTX.

1/26 CAT, MMM, T.

1/27 CVX, PG.

Dow score card for the week ending 1/13/12.

DJ-30: 12422.06 +62.14 +0.50%. The Real World (arithmetical) DJ-30: 54.71 +0.28 +0.51%.

UP: 21, Down: 9.

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

Rising (Generally Higher Highs/Higher Lows) 16 (+6) 53%:

+*AA, AXP, +*BA, BAC, +*CAT, +*CSCO, +*DD, GE, HD, +*HPQ, JPM, +*KFT, MMM, MSFT, +*TRV, +*UTX.

Consolidating (Generally Lower Highs/Higher Lows) 12 (-8) 40%:

-*CVX, -*DIS, INTC, JNJ, MCD, -*MRK, PFE, PG, T, VZ, WMT, XOM.

Declining (Generally Lower Highs/Lower Lows) 2 (+2) 7%:

-*IBM, -*KO.

+/- denotes change of direction.

* denotes change of category.