Dec 26, 2011 - Issue #299
Upward resistance broke... just barely
Upward resistance broke... just barely.
CNBC & Fox News (FNC), again, as usual, are asking everyone: What should investors do now? Again, not one
analyst/advisor/portfolio manager has mentioned the 'married put' strategy as the foundation of an investing
strategy. Why not? Why does Wall Street fear investors adopting this strategy? Answer: Because they won't be able to dump stock on you. You will have avoided their traps!
GE: As expected, all lights turned 'green' on MarketClub's Trade Triangle technology as GE moved up smartly.
Upward support lines were put in place on weekly charts (lower pivot points connecting to higher lows). The
markets are, clearly, drawing their 'lines in the sand'. If prices slip beneath these lines on a closing
basis, I would consider an important sell signal to have taken place. Otherwise, enjoy the upward ride.
Countdown till 2012 elections: 45 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?
12/10 Saturday - Full Moon (Observe market action Friday & Monday).
12/24 Saturday - New Moon (Beware! Observe market action Friday & Tuesday).
During the next two weeks, the following DJ-30 components report earnings. Keep a sharp eye out for possible
price swings, up or down, (possible trading on 'inside information') leading up to 'earnings day' (Subject to
Dow score card for the week ending 12/23/11.
DJ-30: 12294.00 +427.61 +3.60%. The Real World (arithmetical) DJ-30: 54.15 +1.89 +3.60%.
Up: 30, Down: 0.
Trends (weekly charts): This is the subjective part.
Rising (Generally Higher Highs/Higher Lows) 18 (+11) 60%:
+*BA, +*CVX, +*DIS, GE, +*HD, +*JNJ, +*KFT, +*KO, +*MCD, MRK, MSFT, PFE, PG, +*T, TRV, VZ, +*WMT, +*XOM.
Consolidating (Generally Lower Highs/Higher Lows) 12 (-8) 40%:
+*AA, AXP, BAC, +*CAT, CSCO, +*DD, HPQ, IBM, INTC, JPM, MMM, UTX.
Declining (Generally Lower Highs/Lower Lows) 0 (-3) 0%:
+/- 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!