Nov 8, 2010 - Issue #240

Shellacked!

CNBC is correctly asking: Now what?

Market condition: Phase 2 (An upward swing following a consolidation), at least initially. Bernanke's QE2 triggers rise in markets, decline in US$.

Question: Will Dems settle tax rates for 2011, during 'lame duck' session? If not, will incoming Congress roll them back?

One thing for sure: Repeal Obamacare vote will be scheduled to show America where each member of Congress stands.

In the Senate, 12 Democratic Senators up for re-election in 2012 are from states that went Republican. How comfortable are they?

The fight is not over.

Countdown till 2012 elections: 104 weeks.

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?

11/6 Saturday - New Moon (Observe Friday & Monday market activity).

11/21 Sunday - Full Moon (Observe Friday & Monday market activity).

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):

11/10 CSCO.

11/11 DIS.

11/16 HD, WMT.

11/22 HPQ.

Dow score card for the week ending 11/5/10.

DJ-30: 11444.08 +325.59 +2.93%. The Real World (arithmetical) DJ-30: 50.40 +1.42 +2.90%.

UP: 27, Down: 3.

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

Rising (Generally Higher Highs/Higher Lows) 21 (+14) 70%:

+*AA, +*AXP, +*CAT, +*CSCO, DD, DIS, +*HD, +*HPQ, IBM, INTC, +*JNJ, +*JPM, +*KO, MSFT, +*PG, +*T, TRV, +*UTX, +*VZ, +*WMT, +*XOM.

Consolidating (Generally Lower Highs/Higher Lows) 6 (-15) 20%:

BA, BAC, CVX, GE, MCD, +*MMM.