Jun 23, 2008 - Issue #116
Still Not Looking Good!
Still not looking good, although the Dow Transpotations improved.
The US$ retraced some of its new found strength.
CNBC had one guest that said the market should have a good ride until the Dems take over
and then collapse. Maybe the market's not waiting. Who knows? Who cares? If you 'shorted'
the moment markets ticked lower, you profited. Nice trade! Your only decision is when to
cover. A glance at the individual Dow components, as of Friday's close, doesn't show
much support coming in, as yet. Keep adjusting your stops lower as the market declines.
Sooner or later, the market will take you out. As long as you always follow the line of
least resistance, how can you go wrong? The trick is to not form opinions. Stop looking for reasons. You'll never figure it out anyway. Just go with the flow.
KO and MRK showed some contra strength in a very weak day of trading. Swing trade up?
The SPY is following the DIA lower. The QQQQ looks to be next. It's like watching a WWII
movie as fighter planes peel off one after another and, with guns blazing, dive on an
enemy formation below.
The volatility indexes are rising with no signs of peaking yet.
Dow score card for the week ending 6/20/08.
DJ-30: 11842.69 -464.66 -3.78%. The Real World (arithmetical) DJ-30: 48.48 -1.92 -3.79%.
UP: 2, Down: 28.
Trends (weekly charts): This is the subjective part.
Rising (Generally Higher Highs/Higher Lows) 0 (-2) 0%:
Consolidating (Generally Lower Highs/Higher Lows) 12 (-8) 40%:
BA, CAT, CVX, DD, HD, HPQ, +*INTC, +*JPM, MCD, MSFT, UTX, -*WMT.
Declining (Generally Lower Highs/Lower Lows) 18 (+10) 60%:
-*AA, -*AIG, -*AXP, BAC, -*C, -*DIS, GE, -*GM, -*IBM, -*JNJ, KO, -*MMM, MRK, -*PFE, -*PG,
-*PG, T, -*XOM.
+/- 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!