Jun 4, 2012 - Issue #322
Five more months
Five more months...
Biased mainstream media protects their precious Obama... to no avail. They want you to believe
the election will be close. No... it won't. Obama is going to lose in a landslide.
Pick your stocks with great care, protect them with puts, and don't be short calls when the
supreme court decision comes down on Obamacare.
MarketClub Primary Trend (monthly algorithms) on DJ-30 stocks:
UP (12) 40%:
AXP, DIS, GE, HD, KFT, KO, MRK, PFE, T, TRV, VZ, WMT.
DOWN (18) 60%:
AA, BA, BAC, CAT, CSCO, CVX, DD, HPQ, IBM, INTC, JNJ, JPM, MCD, MMM, MSFT, PG, UTX, XOM.
Dow Dogs (10 highest yielding):
T, VZ, MRK, PFE, JNJ, JPM, CVX, PG, GE, DD.
Dow Small Dogs (5 lowest priced among the 10 highest yielding):
MRK, T, JPM, PFE, GE.
As of 5/31, corporate stock earnings yields on the S&P 500 (SPY) still above corporate
bond yields (7.34% vs. 1.88%) thus favoring corporate stocks over corporate bonds 3.9 to 1.
Keep your eye on earnings yields. That's what you're being paid to take risk. Dividend
yields are only part of the picture.
IONOPTIONS Ron Ianieri: "Facebook is BS. Keep your eye on europe."
U. S. Political situation: Extremely vulnerable. Only rational solution: Regime change.
Romney: "It's about jobs, the economy, and Obama's record!" Allen West for VP!
The only thing Obama and the corruptocrats are good at is pissing on your leg and telling
you it's raining.
Wisconsin 6/5 re-call election will deliver death blow to public employee unions and the
politicians that support them. The taxpayers will prevail!
Supreme Court ruling on constitutionality of Obamacare (due out late June): Ticking time bomb.
Likely market effect: Explosive.
Countdown till 2012 elections: 22 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?
6/4 Monday - Full Moon.
6/19 Tuesday - New Moon.
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 6/1/12.
DJ-30: 12118.57 -336.26 -2.70%. The Real World (arithmetical) DJ-30: 53.37 -1.49 -2.70%.
UP: 2, Down: 28.
Trends (weekly charts): This is the subjective part.
Rising (Generally Higher Highs/Higher Lows) 2 (N/C) 7%:
Consolidating (Generally Lower Highs/Higher Lows) 8 (-12) 27%:
BAC, DIS, GE, HD, HPQ, +*INTC, +*MRK, VZ.
Declining (Generally Lower Highs/Lower Lows) 20 (+12) 67%:
-*AA, -*AXP, -*BA, -*CAT, CSCO, -*CVX, -*DD, IBM, JNJ, -*JPM, -*KFT, -*KO, -*MCD, -*MMM,
MSFT, PFE, PG, -*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!