Dec 12, 2011 - Issue #297
Latest Upward Move Anemic
Latest upward move anemic...running out of steam???
CNBC & Fox News (FNC), again, as usual, are asking everyone: What should investors do now? Again, not one
analyst/advisor/portfolio manager has mentioned the 'married put' strategy as the foundation of an investing
strategy. Why not? Why does Wall Street fear investors adopting this strategy?
The biggest stand out performer: GE (increasing dividend). GE was also the lowest priced stock of the 5 highest
yielding DJ-30 components (Small Dogs of the Dow). Does GE look attractive as a candidate for the 'married put'
strategy? Notice GE also advanced to the 'rising' category in the Dow Score Card (+4.66% for the week).
For that matter, why not apply the 'married put' strategy to the entire 10 stock Dow Dogs or the 5 stock Small
Dow Dogs portfolios? Diversification, unlimited upside potential, ironclad downside protection, with a view to
collecting premium by selling front month ATM covered calls on rallies (morphing into a 'protected collar') and
covering on subsequent declines. This might be accomplished multiple times.
Would your investing results have been improved, if you had followed such a strategy in the past?
Countdown till 2012 elections: 47 weeks.
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?
12/10 Saturday - Full Moon (Observe market action Friday & Monday).
12/24 Saturday - New Moon (Beware! Observe market action Friday & Monday).
During the next two weeks, the following DJ-30 components report earnings. Keep a sharp eye out for possible
price swings, up or down, (possible trading on 'inside information') leading up to 'earnings day' (Subject to
Dow score card for the week ending 12/9/11.
DJ-30: 12184.26 +164.84 +1.37%. The Real World (arithmetical) DJ-30: 53.66 +0.73 +1.37%.
UP: 25, Down: 5.
Trends (weekly charts): This is the subjective part.
Rising (Generally Higher Highs/Higher Lows) 13 (+4) 43%:
BA, +*GE, HD, +*HPQ, IBM, +*INTC, +*JPM, KFT, MCD, PFE, PG, VZ, XOM.
Consolidating (Generally Lower Highs/Higher Lows) 16 (-5) 53%:
AA, AXP, BAC, CAT, CSCO, CVX, DIS, JNJ, KO, MMM, MRK, MSFT, T, TRV, UTX, WMT.
Declining (Generally Lower Highs/Lower Lows) 1 (+1) 3%:
+/- 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!