Jun 16, 2008 - Issue #115

Not Looking Good!

Not looking good is an understatement. While the Dow made a pathetic attempt at recovery, the Transportations continued to fall.

CNBC will, no doubt, have many interesting debates among their guest commentators this week about what it all means (as if anyone really knows).

My recommendation: Don't try to figure out what's happening economically. You'll only get confused. Just follow what's happening in the markets that interest you. Buy strength, sell weakness, follow your trading plan, and don't worry about it. Markets neither know nor care about any one's opinions, points of view, nor anything else.

Big money tends to be smart money. Follow the volume (especially when news is absent). Just because there's no 'news' doesn't mean there's no news. It simply means it hasn't been anounced yet. But you can bet that it soon will be. You can also bet that someone 'knows' and they're acting on what they know big time. Their action moves markets. Follow the line of least resistance. They can't hide their tracks.

Follow MarketClub's method. It works. Monthly charts signal change of trend. Weekly charts signal entry and exit points. Notice the method couldn't care less about economists opinions, fundamentals, or anything other than what really counts (price). All relevant ecomomic factors are being determined as we speak. We will never know what's relevant in time to benefit from it.

Dow score card for the week ending 6/13/08.

DJ-30: 12307.35 +97.54 +0.80%. The Real World (arithmetical) DJ-30: 50.40 +0.41 +0.82%.

UP: 20, Down: 10.

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

Rising (Generally Higher Highs/Higher Lows) 2 (+1) 7%:

+*PG, WMT.

Consolidating (Generally Lower Highs/Higher Lows) 20 (+12) 67%:

+*AA, +*AIG, +*AXP, +*BA, +*C, +*CAT, CVX, +*DD, +*DIS, +*GM, HD, HPQ, IBM, JNJ, +*MCD, +*MMM, +*MSFT, +*PFE, +*UTX, +*XOM.

Declining (Generally Lower Highs/Lower Lows) 8 (-13) 27%:


+/- 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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