Aug 24, 2009 - Issue #177
Negative divergence (MACD) is present as the DJ-30 rises. It appears to be wide spread.
CNBCs Kudlow Report had Doctor Bob Frolich (my favorite contrary indicator, given his
track record), bullish as usual.
Dare we look forward to a sweeping change of government after the November 2010 elections
à la 1994?
We need an administration that favors capital formation rather than leftist socialism. We
need a tax system that rewards, rather than punishes, success. Give us that, then get out
of the way. America knows what to do.
In the meantime, become as knowledgeable as possible in the art of 'synthetic Option'
techniques. They are the best 'tools' available to all market participants.
Take advantage of low volatility whenever market conditions permit (like now?). It's cheap
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?
9/4 Friday - Full Moon.
9/18 Friday - New Moon.
During the next two weeks, the following Dow components report earnings. Keep a sharp eye
out for possible price swings leading up to 'earnings day' (Subject to revision):
Dow score card for the week ending 8/21/09.
DJ-30: 9505.96 +184.56 +1.98%. The Real World (arithmetical) DJ-30: 41.93 +0.81 +1.98%.
UP: 28, Down: 2.
Trends (weekly charts): This is the subjective part.
Rising (Generally Higher Highs/Higher Lows) 9 (+3) 30%:
BAC, +*DIS, HPQ, +*IBM, JPM, +*MRK, +*PFE, +*TRV, UTX.
Consolidating (Generally Lower Highs/Higher Lows) 21 (-1) 70%:
-*AA, AXP, BA, CAT, CSC0, CVX, DD, GE, HD, INTC, JNJ, KFT, +*KO, MCD, MMM, MSFT, PG, T,
VZ, -*WMT, +*XOM.
Declining (Generally Lower Highs/Lower Lows) 0 (-2) 0%:
+/- 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!