Feb 6, 2012 - Issue #305
Market Melts Up
Market melts up. Is the market anticipating Obama defeat? Volatility low. Puts are cheap. Buy insurance.
Ron Ianeri (IONOPTIONS.com): Earnings off, european debt crisis, & China still a problem. Nothing has changed.
Corporate stock earnings yields still above corporate bond yields thus favoring stocks.
Political situation: Stalemate. Solution: Regime change.
Dow Dogs (10 highest yielding): T, VZ, MRK, PFE, GE, JNJ, PG, DD, INTC, CVX.
Dow Small Dogs (5 lowest priced of the 10 highest yielding): VZ, T, INTC, PFE, GE.
Countdown till 2012 elections: 39 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?
2/7 Tuesday - Full Moon.
2/21 Tuesday - New Moon (Beware!).
During the next two weeks, the following DJ-30 components report earnings. Keep a sharp eye out for price
swings, up or down, (possible trading on 'inside information'?) leading up to 'earnings day' (Subject to
2/7 DIS, KO.
Dow score card for the week ending 2/3/12.
DJ-30: 12862.23 +201.77 +1.59%. The Real World (arithmetical) DJ-30: 56.65 +0.89 +1.59%.
UP: 25, Down: 5.
Trends (weekly charts): This is the subjective part.
Rising (Generally Higher Highs/Higher Lows) 16 (+8) 53%:
AA, +*AXP, +*BA, BAC, CAT, +*CSCO, DD, +*HPQ, IBM, +*JNJ, +*JPM, +*KFT, MMM, +*MSFT, UTX, +*WMT.
Consolidating (Generally Lower Highs/Higher Lows) 10 (-6) 33%:
+*CVX, DIS, GE, HD, -*INTC, KO, +*MCD, +*T, +*TRV, +*VZ.
Declining (Generally Lower Highs/Lower Lows) 4 (-2) 13%:
-*MRK, -*PFE, PG, -*XOM.
+/- 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!