Oct 25, 2010 - Issue #238

Halloween Surprise?

Halloween Surprise? Ghosts and goblins abound, Oh My! Obama, Pelosi, Reid and Company (aka Corruptocrats) are trying their worst to scare the hell out of us. Don't buy it. They're running scared... and they have reason.

CNBC asks if the market is "taking a knee" before the election. Maybe. Maybe not.

It's too early to tell, but many DJ-30 components look a little 'toppy' as of Friday (Full Moon?). One thing for sure: What the next Congress will look like will be known soon. Order the champagne.

Countdown till November 2nd elections: 8 days.

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?

10/7 Thursday - New Moon.

10/22 Friday - Full Moon.

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

10/26 DD.

10/27 PG.

10/28 MMM, MSFT, XOM.

10/29 CVX, MRK.

11/2 PFE.

11/4 KFT.

Dow score card for the week ending 10/22/10.

DJ-30: 11132.56 +69.78 +0.63%. The Real World (arithmetical) DJ-30: 49.02 +0.30 +0.62%.

UP: 20, Down: 10.

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

Rising (Generally Higher Highs/Higher Lows) 13 (-3) 43%:

CSCO, +*CVX, DD, +*HPQ, JNJ, KFT, KO, MCD, +*MMM, PG, TRV, UTX, XOM.