Mar 14, 2011 - Issue #258

Is the Bear Coming Out of Hybernation?

CNBC's Larry Kudlow (Kudlow & Company) uncharacteristicly referred to a bit of technical analysis in describing Friday's massive hit saying, "It was a 'miracle' that it finished up 60 points for the day, given what was happening throughout the world. Never the less, the overall market still closed down 125 points for the week!"

Note the increasingly favorable performance of all the 'inverse', or 'Bear' ETF's based on broad based indexes for confirmation.

Obama says it would be easier to be President of China, because no one would question him! Is he saying he'd rather be a 'dictator'?

Countdown till 2012 elections: 86 weeks.

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?

3/4 Friday - New Moon (Observe market performance Friday and Monday).

3/19 Saturday - Full Moon (Observe market performance Friday and Monday).

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):

None.

Dow score card for the week ending 3/11/11.

DJ-30: 12044.40 -125.48 -1.03%. The Real World (arithmetical) DJ-30: 52.85 -0.75 -1.40%.

UP: 8, Down: 22.

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

Rising (Generally Higher Highs/Higher Lows) 2 (-6) 7%:

MCD, +*T.

Consolidating (Generally Lower Highs/Higher Lows) 15 (-2) 50%:

AXP, +*BA, BAC, -*CVX, -*DIS, HD, IBM, JPM, KFT, -*KO, MMM, -*MRK, -*PFE, -*VZ, WMT.

Declining (Generally Lower Highs/Lower Lows) 13 (+8) 43%:

-*AA, -*CAT, -*CSCO, -*DD, -*GE, HPQ, -*INTC, -*JNJ, MSFT, PG, -*TRV, UTX, -*XOM.

+/- denotes change of direction.

* denotes change of category.