May 17, 2010 - Issue #215



Last Chance?



Last Chance?

Observation: The market's latest upward reaction seems to have ended 5/13, coincident with a New Moon.

Last of the Dow components to report 1st quarter earnings: 5/18 Erev Shavuot (religious significance) as well as primary election day in PA.

Any significant connection between the above items? I have no idea. Just observations.

CNBC guest analysts seem to be strong on gold. When have they ever been right?

MCD (mentioned last week) has put in a significant downward line of resistance on the daily chart, thus far.

One thing, for sure: Liberal politicians are having a rough time.

The next House and Senate will look a lot different.

Notice the big bunching in the middle of the Dow components. This won't last. One would expect the next swing to be down.

Note: IBM, the highest priced stock in the Dow, is the only component in a rising trend. This makes the price-weighted average appear stronger than it otherwise would be.

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?

5/13 Thursday - New Moon.

5/27 Thursday - 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):

5/18 HD, HPQ, WMT.

Dow score card for the week ending 5/14/10.

DJ-30: 10620.16 +239.73 +2.31%. The Real World (arithmetical) DJ-30: 46.84 +1.06 +2.31%.

UP: 24, Down: 6.

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

Rising (Generally Higher Highs/Higher Lows) 1 (+1) 3%:

+*IBM.

Consolidating (Generally Lower Highs/Higher Lows) 28 (+27) 93%:

+*AA, +*AXP, +*BA, +*BAC, +*CAT, +*CSCO, +*CVX, +*DD, +*DIS, +*GE, +*HD, +*HPQ, +*INTC, +*JNJ, KFT, +*KO, +*MCD, +*MMM, +*MRK, +*MSFT, +*PFE, +*PG, +*T, +*TRV, +*UTX, +*VZ, +*WMT, +*XON.

Declining (Generally Lower Highs/Lower Lows) 1 (-28) 3%:

JPM.

+/- 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!

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