Nov 1, 2010 - Issue #239

Trick or Treat?

CNBC will have its hands full this week with the elections, the Fed meeting, and the jobless report on tap.

Market condition: Phase 3 (Consolidation following an upward swing).

Question: Will the market resume its Phase 2 move (An upward swing following a consolidation) or go into a Phase 4 move (A downward swing following a consolidation)? Basically, up or down from here?

The Tea Party backed Republicans have already stated, "No compromise with the 'Progressives'. Obama is to be a 1 term President!"

The new incoming Congress won't be seated until January. What will the 'lame duck' post-election Congress do for the rest of the year? Nothing or mischief?

Much depends upon: Will the Republicans 'sweep'?

The first test will be: The debt ceiling. Will the insane spending come to a screeching halt?

Congressman Spence (R) from Indiana has called for "Repeal of Obama Care, lock, stock, and barrel!"

Countdown till November 2nd elections: 1 day.

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?

11/7 Thursday - New Moon.

11/22 Friday - 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):

11/2 PFE.

11/4 KFT.

11/10 CSCO.

11/11 DIS.