Friday, January 8, 2010

Monday Special

Since the March 9th, the Dow has had 30 “up” Mondays (or Tuesdays after a Monday holiday) out of a possible 43. That’s equal to 70 percent. And 16 of the past 18 Mondays being “up” (I just mentioned) equals 89 percent. Then incredibly, 80 percent of all the point-gains since March 9th came on those 30 Monday up-days - from evil speculator
Maybe the fed will try to do it again and get the market to blow off the few remaining shorts - 1150 to 1165 on the SPX could be possible...if they do rally it as usual. If they do not and are planning to surprise the bulls who have their planned or open monday trades as of today...then we could be in a very interesting day.

Interesting Chart of the EURO

The signals on the chart for the lows and highs occur with in 1 or 2 bars max from the turn point and the smoothed price is a synthetic price that is slow when the market is slow and fast when it is fast - keeping you in the trade...the value chart below is a great confirmation for the high reward low risk trades. Also, the cycle analysis give  you good feed back on breakouts and end of trend potentials. Yellow candles represent higher risk in the direction of trade.

Wednesday, January 6, 2010

Two views of the market - Market On Bernake and Market NOT on Bernake

The market has been manipulated by our friends at the Fed. They are intent on bankrupting everyone - except their crony's. The way they manipulated the market is with overnight, highly leveraged futures. I have discussed this at length in previous posts. This has resulted in a vast amount of non traded prices. This makes the current prices illusionary. If you look at the two markets will recognize that they are the same market and the same timeframe. Only one of the markets has removed the Fed from the equation. Guess which chart is easier to analyze? And look at the projections...Technically the Second chart is much more compelling and clear to read...I am interested in your thoughts...

Tuesday, January 5, 2010

Everything is ok...yes really it is

Dow 30 Enhanced Premium & Income Fund 

Dow 30 Enhanced Premium & Income Fund Inc. (the Fund) is a diversified, closed-end management investment company. The investment objectives of the Fund are to provide a high level of premium and dividend income, and the potential for capital appreciation. The Fund pursues its investment objectives principally through a multi-step strategy. The Fund will purchase the 30 common stocks included in the Dow Jones Industrial Average (DJIA Index), weighted in approximately the same proportions as in the DJIA Index (the Dow Stocks). The Fund will also purchase other securities or financial instruments, primarily swap contracts, designed to provide additional investment exposure (leverage) to the return of the Dow Stocks (the Additional Dow Exposure). The Fund also will engage in certain option strategies, primarily consisting of writing (selling) covered call options on some or all of the Dow Stocks (the Options). The Fund’s investment advisor is IQ Investment Advisors LLC
Do you believe them? and if this represents what people are thinking about the income prospect for the DOW 30...the story is not what they are putting out on CNBS.

The last time I saw funds collapsing like this...was when Hedgefunds were going down because they had illiquid mortgage backed securities on their books...if you believed that reason then the you can believe what you want now. Those blow ups started in 2007 and now we have this - timed right with the highs in the market...and on heavy volume too. NOT A GOOD SIGN TO SAY THE LEAST. Best to be very careful, about adopting bullish positions.

Good job Bernake and Geithner...are all your buddies happy with their bonuses.
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