Mar 12, 2012 - Issue #310
Every Friday is Options Expiration Day
Every friday is options expiration day because of 'weekly' options while 'quarterly' options
expire on the last business day of each quarter.
Why is this important to keep in mind?
Because of the tendency of market-makers to 'pin' closing prices to the strike price of
the the option with the largest open interest thereby rendering those options worthless.
Notice how often stocks close at or near a particular options strike price.
Corporate stock earnings yields still above corporate bond yields thus favoring stocks.
Political situation: Stalemate. Solution: Regime change. Anyone but Obama.
Dow Dogs (10 highest yielding): T, MRK, PFE, GE, JNJ, DD, INTC, PG, KFT, CVX.
Dow Small Dogs (5 lowest priced of the 10 highest yielding): MRK, T, INTC, PFE, GE.
Countdown till 2012 elections: 34 weeks.
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?
3/8 Thursday - Full Moon.
3/22 Thursday - New Moon (Beware!).
During the next two weeks, the following DJ-30 components report earnings. Keep a sharp eye
out for price swings, up or down, (possible trading on 'inside information'?) leading up to
'earnings day' (Subject to revision):
Dow score card for the week ending 3/9/12.
DJ-30: 12922.02 -55.55 -0.43%. The Real World (arithmetical) DJ-30: 56.93 -0.23 -0.40%.
UP: 14, Down: 16.
Trends (weekly charts): This is the subjective part.
Rising (Generally Higher Highs/Higher Lows) 6 (-2) 20%:
+*HD, +*IBM, JPM, PFE, T, VZ.
Consolidating (Generally Lower Highs/Higher Lows) 15 (-3) 50%:
AXP, BAC, +*CSCO, -*CVX, DD, -*DIS, GE, INTC, JNJ, KFT, -*KO, -*MSFT, PG, WMT, XOM.
Declining (Generally Lower Highs/Lower Lows) 9 (+5) 30%:
-*AA, -*BA, -*CAT, HPQ, -*MCD, -*MMM, MRK, TRV, -*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!