Nov 26, 2007 - Issue #086
How Now Dow?
'How now Dow?', indeed! Does anything about this market make sense at all?
Time was when rising oil and gold would send stocks into a tailspin. It seems to be
working as far as the Dow Transportation's are concerned; they're a wreck!
Earlier in the year, the Transports' were rising right along with soaring fuel prices
as though it didn't matter.
I suspected they had discovered how to use commodity futures contracts to hedge their
exposure. Turns out I was right. So what's happened now? Have they stopped hedging? If
so, the've paid for it in spades.
This past week's trading, because of the holiday, is difficult to draw any conclusions
from. The week coming up is a different matter.
The 'talking heads' at CNBC are always asking the question: Where is the best place to
invest now? How come no one ever says, 'cash is king', anymore?
Dow score card for the week ending 11/23/07.
DJ-30: 12980.88 -195.91 -1.49%. The Real World DJ-30: 53.23 -0.80 -1.49%.
UP: 3, Down: 27.
Trends (weekly charts): This is the subjective part.
Rising (Generally Higher Highs/Higher Lows) 8 (-1) 27%:
INTC, JNJ, KO, MCD, MO, MRK, PG, UTX.
Consolidating (Generally Lower Highs/Higher Lows) 9 (-1) 30%:
-*GE, HON, HPQ, IBM, +*MMM, MSFT, VZ, WMT, XOM.
Declining (Generally Lower Highs/Lower Lows) 13 (+2) 43%:
AA, AIG, AXP, BA, C, CAT, DD, -*DIS, GM, HD, -*JPM, PFE, -*T.
+/- 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!