Oct 29, 2007 - Issue #082
Halloween Party at the Fed!
Halloween party at the Fed and we're all invited! Will it be trick or treat???
Despite the frantic activity due to 3Q 'earnings' reports, the market seems to be
marking time until the results of the FOMC meeting are known on Halloween.
What then? The market will move up or down... probably big time. How should we play it?
If the volatility is low enough, buy straddles now. Otherwise, be prepared to put on
positions as markets break out. If the break should be to the downside, be prepared to
get out or go short.
Speaking of which, HON is looking suspiciously like a 'short' candidate.
Dow score card for the week ending 10/26/07.
DJ-30: 13806.70 +284.68 +2.11%. The Real World DJ-30: 56.62 +1.17 +2.11%.
UP: 25, Down: 5.
Trends (weekly charts): This is the subjective part.
Rising (Generally Higher Highs/Higher Lows) 11 (N/C) 37%:
GE, GM, IBM, INTC, KO, MCD, MO, MRK, +*MSFT, +*PG, UTX.
Consolidating (Generally Lower Highs/Higher Lows) 12 (N/C) 40%:
AA, CAT, DIS, HON, -*HPQ, JNJ, JPM, MMM, T, VZ, WMT, -*XOM.
Declining (Generally Lower Highs/Lower Lows) 7 (N/C) 23%:
AIG, AXP, BA, C, DD, 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!