Apr 14, 2008 - Issue #106
Smoke and Mirrors?
Smoke and mirrors? On Friday, to say that GE disappointed would be an understatement of
mega dimensions. Yet, despite the massive gap down, notice that what is really taking
place is a test of the 3/10 low of 31.65. The market simply lost no time in starting
the test. So far, at least, the low is holding. If it continues to hold, the market will
interpret that to be a strong base of support. Stay tuned, sports fans!
Another Dow component, PFE, is also testing its 3/17 low of 20.19. Note this is the
level that launched a massive bull market in the stock back on Monday, 12/12/05 from the
low of 20.27. Will history repeat?
Notice, also, how the Real World DJ-30 (plain arithmetical) average seems to take all the emotional steam out of this ridicules index?
Dow score card for the week ending 4/11/08.
DJ-30: 12325.42 -284.00 -2.25%. The Real World (arithmetical) DJ-30: 50.46 -1.18 -2.28%.
UP: 7, Down: 23.
Trends (weekly charts): This is the subjective part.
Rising (Generally Higher Highs/Higher Lows) 4 (-14) 13%:
+*AXP, CVX, JNJ, WMT.
Consolidating (Generally Lower Highs/Higher Lows) 25 (+14) 83%:
AA, -*AIG, AXP, BAC, -*C, -*CAT, -*DD, -*DIS, -*GM, -*HD, HPQ, IBM, INTC, JPM, KO, -*MCD,
MMM, +*MRK, MSFT, -*PFE, -*PG, -*T, -*UTX, -*VZ, -*XOM.
Declining (Generally Lower Highs/Lower Lows) 1 (n/c) 3%:
+/- 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!