Jul 27, 2010 - Issue #226

Rockin'n Rollin!

Rockin'n Rollin, to and fro, backing and filling, call it what you will, is the dance the market performed.

CNBC had a 'Maloxx moment' with CSCO. The stock, out of the blue, shoots up about 3 points and then collapses back to where it started. Despite much gnashing of teeth, the exchanges said everything was legitimate and the trades stand. Can you say, 'algo' trading? Talk about 'search and destroy' missions. How many times do you have to be told, 'market' and 'stop' orders can blow up in your face? If it can happen to a component of the DJ-30, it can happen to any stock.

At the end of the week, it looks as though nothing much happened. Notice how many Dow components changed places with each other? This will not last. My best guess? The next big move: Down.

Countdown till November 2nd elections: 93 days.

Heads Up

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?

8/9 Monday - New Moon.

8/24 Tuesday - 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):

8/3 PFE, PG.

8/5 KFT.

8/10 DIS.

8/11 CSCO.

Dow score card for the week ending 7/30/10.

DJ-30: 10465.94 +41.32 +0.40%. The Real World (arithmetical) DJ-30: 46.10 +0.19 +0.41%.

UP: 17, Down: 12, N/C: 1.

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

Rising (Generally Higher Highs/Higher Lows) 13 (+1) 43%:

+*AA, +*BA, CAT, CVX, DD, GE, +*HD, +*JPM, KO, +*PFE, T, UTX, +*VZ.

Consolidating (Generally Lower Highs/Higher Lows) 17 (+1) 57%:


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!

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