Dec 20, 2010 - Issue #246
Steel Curtain Defense
Steel Curtain Defense. Corruptocrats are powerless and terrified of 2012 as 'lame duck' winds down. Reid
admits he "doesn't have the votes".
CNBCs Kudlow & Cramer are convinced Obama is a different man after Nov 2nd. No, he's not. Obama is simply
running scared. He's grasping at straws. He is 'one and done'. The only bi-partisanship will be on the
Opinion is divided on the market direction when the Republicans take control. It's been moving up on declining
volume, normally very bearish. Volume always declines as the year comes to a close. This year is no different.
Will 2011 start out rising or falling? Rising trendlines are in place. Will they hold or will they be violated
and break to the downside? Why guess. Buy Puts while they're cheap. WARNING: Look at the calender. 2011 begins
on a 'New Moon' (Jan 4).
Many traders are gone till after the holidays. Why should you be the only one there?
Countdown till 2012 elections: 98 weeks.
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?
12/5 Sunday - New Moon (Observe Friday & Monday market activity).
12/21 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):
Dow score card for the week ending 12/17/10.
DJ-30: 11491.91 +81.59 +0.72%. The Real World (arithmetical) DJ-30: 50.62 +0.37 +0.73%.
UP: 21, Down: 9.
Trends (weekly charts): This is the subjective part.
Rising (Generally Higher Highs/Higher Lows) 14 (-2) 47%:
AA, CAT, CVX, +*DD, HD, KFT, +*KO, MRK, MSFT, PFE, +*PG, T, +*TRV, VZ.
Consolidating (Generally Lower Highs/Higher Lows) 14 (n/c) 47%:
-*AXP, BA, -*BAC, CSCO, DIS, -*GE, IBM, -*INTC, JNJ, -*JPM, MMM, UTX, WMT, -*XOM.
Declining (Generally Lower Highs/Lower Lows) 2 (+2) 7%:
+/- 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!