Apr 13, 2009 - Issue #158
Pre-Holiday Trading Volume Surprise!
Pre-holiday trading volume surprise! When was the last time we saw heavy trading volume
going into a holiday weekend??? Everyone was expecting a big 'nothing' day. Most traders
had already closed out their positions and left town when Wells-Fargo (WFC) delivered the
earnings surprise bomb. Oh, and by the way, have you noticed the date of this announcement
just happened to coinside with a 'full moon'? Is this the pivot point we've been looking
for? Look for follow-through (or lack thereof) on Monday.
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?
4/24 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):
4/13 (Transportations) JBHT.
4/14 INTC, JNJ, (Transportations) CSX.
4/15 BA, (Transportations) LSTR, R.
4/16 AXP, JPM, (Transportations) GMT, LUV, YRCW.
4/17 C, CAT, GE.
4/20 BAC, IBM.
4/21 DD, KO, MRK, UTX, (Transportations) CHRW, JBLU, NSC.
4/22 GM, MCD, PG, T, (Transportations) CAL.
4/23 MSFT, XOM, (Transportations) BNI, CNW, UNP, UPS.
Dow score card for the week ending 4/9/09.
DJ-30: 8083.38 +65.19 +0.82%. The Real World (arithmetical) DJ-30: 33.83 +0.28 +0.82%.
UP: 17, Down: 12, N/C: 1.
Trends (weekly charts): This is the subjective part.
Rising (Generally Higher Highs/Higher Lows) 16 (-3) 53%:
AA, AXP, +*BA, +*BAC, +*C, CAT, DD, +*GE, HD, HPQ, INTC, JPM, MCD, MMM, MSFT, UTX.
Consolidating (Generally Lower Highs/Higher Lows) 14 (+3) 47%:
-*CVX, -*DIS, GM, -*IBM, JNJ, KFT, KO, MRK, PFE, -*PG, -*T, -*VZ, -*WMT, XOM.
Declining (Generally Lower Highs/Lower Lows) 0 (n/c) 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!