Feb 7, 2011 - Issue #253
Obamacare Declared Unconstitutional Again
Obamacare declared unconstitutional again. Obama dragging his heels on 'fast tracking' appeal to the Supreme Court.
CNBC and Fox News focusing on Egypt and the fast approaching debt limit ceiling. Will Obama shut down
government over spending?
DJIA gains 268.45 points. Winners outnumber losers 5:1, yet notice most Dow stocks are consolidating. VIX
declines. MRK earnings disappoint. Doug Kass sees 'earnings compression' ahead and says, if people who give
up looking for work are included, unemployment rate is 15%. Economy is worse than government admits.
Super Bowl Indicator forecasts bull market: Whenever Super Bowl is won by an 'old' (original) NFL team (as
opposed to teams that came over from the American Football League after the merger), the market goes up. Well,
in that case, since both teams, Greenbay Packers and Pittsburgh Steelers, are 'old' it's a 'lock'!
Countdown till 2012 elections: 91 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?
2/2 Wednesday - New Moon.
2/18 Friday - 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):
2/9 CSCO, KO.
Dow score card for the week ending 2/4/11.
DJ-30: 12092.15 +268.45 +2.27%. The Real World (arithmetical) DJ-30: 53.26 +1.18 +2.27%.
UP: 25, Down: 5.
Trends (weekly charts): This is the subjective part.
Rising (Generally Higher Highs/Higher Lows) 10 (-1) 33%:
+*AA, CAT, CSCO, +*CVX, DD, +*DIS, GE, +*JPM, +*PFE, XOM.
Consolidating (Generally Lower Highs/Higher Lows) 16 (+4) 53%:
BA, BAC, -*HD, HPQ, -*IBM, -*INTC, +*JNJ, +*KFT, +*KO, MCD, MMM, +*T, -*TRV, -*UTX, VZ, -*WMT.
Declining (Generally Lower Highs/Lower Lows) 4 (-3) 13%:
-*AXP, MRK, MSFT, PG.
+/- 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!