Dec 10, 2007 - Issue #088
Go Transports! What a turn around! I don't pretend to know what it means (Oil???) but
it sure was exciting to watch! CNBC must be thrilled!
However (there's always a 'however'), the tranies have run right smack up against the
200 ema and halted. Now what?
To further muddy the waters, the 80 ema is converging (colliding) with the 200 ema (from
above) and appears to be in the process of passing through to the downside. The 40 ema
has already done so. In other words, technically speaking, things are in a state of flux.
A 'sea change' could be taking place. If the 200 ema is above all the others, including
price, that is definitely a bear market.
Is the market apprehensively anticipating political change? Unfriendly changes in the
Add to all this, everyone's waiting to see what the Fed's going to do on the 11th.
Question: Does the Fed really have any power anyway? In times past, the rule was, 'Don't
stand in the way of the Fed'. Does that apply anymore? It seems all the Fed can do is
react, rather than lead.
The best that government can do, in my judgement, is foster an environment in which
commerce and trade can flourish. The rest is up to us.
Dow score card for the week ending 12/7/07.
DJ-30: 13325.58 +253.86 +1.90%. The Real World DJ-30: 55.87 +1.04 +1.90%.
UP: 25, Down: 5.
Trends (weekly charts): This is the subjective part.
Rising (Generally Higher Highs/Higher Lows) 10 (+1) 33%:
INTC, JNJ, KO, MCD, MO, MRK, PG, UTX, WMT, +*XOM.
Consolidating (Generally Lower Highs/Higher Lows) 11 (+1) 37%:
+*DD, +*DIS, GM, HON, HPQ, IBM, JPM, MMM, MSFT, +*T, VZ.
Declining (Generally Lower Highs/Lower Lows) 9 (-2) 30%:
AA, AIG, AXP, BA, C, CAT, -*GE, HD, PFE.
+/- 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!