Mar 10, 2008 - Issue #101
Re-test of the 1/22/08 low is now underway. The CNBC moderators expressed relief the
market closed above the lows of the day. We will now see how much pounding the
January low can take.
So far, the AA possible swing top of last week seems to be holding up. It was
challenged this week but broke down on Friday.
DIS, has taken a real pounding everyday the past week with no sign of letting up.
GE penetrated its 200 day ma (weekly chart). Not good.
JNJ appears to be finishing a 'pause that refreshes' before continuing further south.
There's a lot of damage among the Dow components which will take time to heal.
It's times such as these that one truely appreciates the words of Russell Sage, "The only
sensible way to trade a market is to use a Call to protect a short sale and a Put to
protect a long stock position." Sage advice, indeed.
Dow score card for the week ending 3/7/08.
DJ-30: 11893.69 -372.70 -3.04%. The Real World (arithmetical) DJ-30: 48.70 -1.52 -3.04%.
UP: 6, Down: 24.
Trends (weekly charts): This is the subjective part.
Rising (Generally Higher Highs/Higher Lows) 0 (-5) 0%:
Consolidating (Generally Lower Highs/Higher Lows) 15 (N/C) 50%:
-*AA, -*CAT, -*CVX, DD, -*HPQ, -*IBM, INTC, JNJ, KO, +*MSFT, PG, T, VZ, WMT, XOM.
Declining (Generally Lower Highs/Lower Lows) 15 (+5) 50%:
-*AIG, AXP, -*BA, BAC, C, -*DIS, GE, GM, HD, JPM, -*MCD, -*MMM, MRK, -*PFE, UTX.
+/- 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!