prior entry: DEC 31
Closing Report: Believe it or not, but the charts of the major averages actually look bullish despite the recent declines. The stochastics line has dropped toward oversold without much deterioration in the prive levels. Even the lows of today have not gone below the recent lows of several sessions ago. Most of the charts are forming a pennant apex which could break either way. If it breaks upward, we could see a powerful rally. Notice also that the VIX has gone upward but not by very much and notice also that the VIX stochastics line is now showing at a high level which is bullish for the market. If the VIX should drop sharply over the next two or three sessions, the market should react to the upside. We will find out soon. Meanwhile, have a Happy New Year.
prior entry: DEC 28
Midday Report: (1:00 ET) Nothing has changed except that the bad news will vary day by day to throw even more confusion into the market. Something big will happen at the turn of the year. Volume will increase and tax loss selling will end. The market has held well despite all of the bad news. I have also noticed recently that many of the stocks at the lows getting unloaded by those who sell for tax reasons are stocks that are getting acquired by large concerns. There are big blocks going across as the public is selling. It makes me think that it is often a mistake to sell a stock for tax reasons because there are those who recognize this process for what it is and take advantage of it. The increase in price at the turn of the year is quite often more than the tax benefit. This will all come to a head next week. The VIX index is still showing a breakout to the downside which is a bullish sign for the market. Stocks like RIMM, IBM and INTC are still undervalued. Then there are many hundreds of other stocks that have been taken lower for tax reasons now at the end of the year. Citi Group (C) is also pushing the lows of many years as the bashing continues from analysts concerning the bank stocks. One fund manager after another on CNBC is saying that it is too early to buy the banks. Keep in mind that the banks are members of the Federal Reserve, and the banks have priority over the public.
prior entry: DEC 26
Midday Report: (12:00 ET) The new highs to new lows indicator is improving. The deviant forces on Wall Street are using the Target stores release to take the market down and get people to short. This type of news release is deceiving to say the least. It seems as if no one is capable of releasing the exact figure for gift cards which makes the whole affair deceiving concerning retail sales. In my opinion, gift cards should be recorded immediately since these cards are not refunded and if the cards are never used the money stays in. Well, it is all part of the accounting voodoo. I remain bullish on the market, but we should find out soon at the turn of the year whether or not the battered stocks break to the upside. As analysts remain bearish on the financials, smart money is quietly buying.
prior entry: DEC 24
Closing Report: On this short trading day of Christmas Eve, I wish all of you a Merry Christmas. The operators of Wall Street are capable of turning lead into gold and gold into lead. The financial stocks and others that were lead last week will become like gold very soon. The market is bullish at least for the short term. As the world turns, the sun continues to rise every minute of the day. If a recession does come, you will not be warned of it as you are now being warned. However, eventually a recession will occur as any cycle in nature, but for now you should just enjoy the day.
Sunday Report: We have now seen indications of an impending advance. the indicators are showing oversold. The December options expiraions is now over. Tax loss selling is coming to an end this week. All of the stocks with good fundamentals that have been dumped are no longer under selling pressure. The short position is quite heavy. Analysts have been bearish for several weeks. The subprime news has been stretched to the limit. We now wait.
prior entry: DEC 21
Midday Report: (1:00 ET) The VIX index has broken to the downside which gives a bullish signal for the market. There is also indication that institutional selling is easing. Also keep in mind that tax loss selling is coming to an end. Keep an eye on YRCW which is under pressure due to tax loss selling but there is indication that someone is buying knowing full well what is going on here. YRCW is grossly undervalued while analysts continue to down the stock with the excuse that a recession coupled with fuel costs are putting the company in jeopardy. Meanwhile, YRCW is still making money with a net asset value of about $40. Now that the unethical factions of Wall Street have cleaned up on RIMM at the 100 level, it jumps to the 120 level. What a revelation this is! People actually got fooled into thinking that sales were in jeopardy.
prior entry: DEC 20
Closing Report: Market Direction Alert: I will revise the VIX breakpoint to the downside at 20 just to give it more room. So far, the VIX continues to trend downward which is bullish for the market. Just keep a close watch on the VIX. This situation also has a bearing on the financials. In other words, if the VIX goes down, it may well indicate that the financials have formed a bottom. Note: For the past few days, RIMM was kept at the 100 level as the slant through the media was kept at uncertainty. People were bailing out of the stock thinking that the company might say something negative about a possible recession. See for yourself how this game is played. The quarterly comes out after the close, and now there is regret from all those that sold today or perhaps from all those that did not buy because of the negative vibes. They can take their so-called recession worries and shove it all you know where........ The only recession that I see is in the brain power of the public.
Midday Report: (1:00 ET) Market Direction Alert: The following is an important notation that you should observe concerning the direction of the market for the coming month. Take a good look at the VIX chart for six months. Now for the past six weeks draw a line across the tops and a line across the bottoms and you will see an apex pointing to the right. That apex or pennant is important. A break either up or down will mean the direction of the market. If the VIX drops below the 21 level, it will mean a breakout to the downside on the VIX which means the opposite for the market (an upside move). Watch this as we go over the options expiration Friday and especially right after Christmas. It is very possible that market operators are picking up stock right into the options expiration which is now very easy for them to do since the psychological impression is negative in the market. I am also getting a constant slant that analysts are implying a significant drop in the market. In other words, the short interest is increasing. If so many people are now turning bearish, do you want to join them.... Well, let's us first see what happens to the VIX. You should note that this same kind of apex pennant occurred just last September before the VIX broke downward and the market went up. We wait for the signal before going all out.
prior entry: DEC 19
Midday Report: (12:15 ET) It is simply more of the same thing involving the expiration of December options on Friday. The people who control the market are making money on calls that they created and sold to the public, and these control factions will also make money on the stock that is being sold by the public funds at depressed prices. I have noticed that whenever there is a rally in a stock I see stock come out of nowhere knocking the price back down. This is not normal action. It is being done purposely to keep the price down until a target date is hit which could very well be Christmas. The financial stocks are being bashed every day. However, keep in mind that the financial stocks are the power base of those crooked bastards that control the market. These are the stocks that have capital resources and have the market dealers and analysts. These stocks are being taken over by the control factions at these low prices. The same people that are now releasing negative analysis on the financials are the same people that are buying those same stocks. Executives that are being thrown out because of bad performance are being replaced by those who will play ball. This control that I have been talking about is not science fiction. Just open your eyes and you will see it. While these people are getting you to focus on the bad news on CNBC, they are picking up more power to add to their base of operations. These people are more powerful than the stock specialist system of ten years ago. I also believe that this new faction is responsible for the downfall of the specialist system.
prior entry: DEC 18
Midday Report: (1:00 ET) The short term correction that started a few days ago will remain in play until this options expiration on Friday. With this expiration, a lot of negative factors may be discarded including year end tax loss selling and the wiping out of many thousands of call options. In other words, those people who created all those calls are home free, and many of those calls were created by brokerage dealers and hedge funds. Most all of the indicators of the averages are showing oversold along with many stocks. Every fund manager on CNBC is saying that the financials must not be bought. Since the financials represent about 20% of the market, it is easy to see why we are grinding down. However, the market has not crashed as can be seen on the charts of the Dow and S&P. We should see something more positive after Christmas.
prior entry: DEC 13
Closing Report: We are going through a mild short term correction. There has been no crash despite all the negative news concerning banking. The situation will also look very negative because of the constant daily bashing on the news. I have also seen certain stocks get hit with negative news releases on a rally. It is as if some force out there is trying to get investors to sell or short. Whenever I see things like that I begin to wonder that maybe the market will wind up going counter to the impression that is being created. The market was down all day long as the bashing went on. Yet, at the close, we saw the market up. What of all those who went short early in the day? Too bad for them. I stated yesterday that there was no rhyme or reason in this market. I am tired of the word "worried" because that word implies that the dark is surrounding us. So now, you the investor must be worried which means that you should be frozen in acitivity. This in the end means that you should not buy until the worry is gone and the sun is shining bright. Yet, someone is buying from those who are shorting.
prior entry: DEC 12
Midday Report: (1:45 ET) The days of rhyme and reason are over in this market.....at least for a while. You cannot make judgment based on what may seem likely. Yesterday and today is reason enough not to ever believe in reason again. The Fed is just as crooked as those operating the stock market. Who cares that thousands of people lost tons of money yesterday at the close based on Fed commentary. The Fed waited for the innocent to get wiped out and allowed market operators to buy from those who were jumping out windows only to make its announcement of the "coming of the Lord Jesus" when it was too late. I suppose that there are still some of you that just do not comprehend what is going on here. You still think that it is all just an act of nature. Well, it all breaks down into two options. Either the Fed was so stupid that it cannot write a proper statement of its thinking, or it did so purposely. Either way, it is not good. For now, the evidence still supports a stronger market into January. However, if you keep jumping out on each debacle, you will never enjoy the glory of higher prices.
prior entry: DEC 11
Midday Report: (3:00 ET) People were disappointed at the Fed. What else is new! The Fed is composed of bankers that are no smarter than any one of us. If they were really smart, the Fed managers would have warned the member banks about making subprime loans in the first place two years ago. I have nothing good to say about bankers, because I have seen this many times before. The main point here is that many investors have thrown everything out the window at the lows of the day as brokerage market makers accumulated. However, a short term decline would be in order. However, it is not the end of the world.
Midday Report: (1:30 ET) The only thing that has really changed from my last entry is that we are closer to a short term corection. The market remains bullish. The indicators are showing that the market is getting into overbought levels. However, any decline should be of a short term nature since there has been no sign of any major distribution. The main resistance on the Dow is right around 14000 with resistance on the S&P at about 1550. This means that we still have a little more room, and that the market may not drop very much on the Fed decision today. The market is looking for 25 points cut while a 50 point cut would be more bullish. The market is not doing anything radical at present which is good. YRCW has moved above the 20 level as expected and is now creating a reverse head and shoulder formation which is bullish for the transports. The Dow Transportation index has already formed the reverse head and shoulders and has gone higher although it is close to major resistance. I am expecting YRCW to eventually move to the 25 level by early January although many analysts have placed a sell on this issue. YRCW has an equity of about $40. Analysts are only looking at the idea that profits have decreased which is stupid and that retail numbers will be weak for Christmas. YRCW would make a good takeover candidate.
prior entry: DEC 6
Midday Report: (3:00 ET) For the past few days, I have been on a bullish bias concerning the market. A few days ago, I mentioned the situation on the Transportation Index and that it was showing a possible reverse head and shoulders. I also asked you to watch YRCW. YRCW is now on its way to completing a bullish bottom formation. For this market to go higher, I implied that the transports were needed. I also mentioned that investors were getting heavy on short positions and put options.
prior entry: DEC 5
Midday Report: (11:45 ET) Do you see how this game is played? The only difference between today and yesterday is the fact that the futures were manipulated. During the night, the futures were already up without any news releases taking place. For example, people were dumping RIMM right into the close yesterday at the 101 level, and first thing this morning it gets an upgrade. People are getting robbed at a level that dwarfs anything that may have occurred at Enron, and yet no one seems to notice. Despite all the education that people may have, people in the market will accept getting robbed. If anyone complains, those in the establishment will claim that you are resorting to conspiracy theories. Well, all the idiots that can believe that President Bush conspired against the American people must surely believe that the market is crooked. However, they do not. These foolish Americans do still believe that the market is not manipulated. The market can be manipulated by well placed news releases, analyst releases, rumor mills, buying and selling into the key stocks in each sector, and the futures. Jim Cramer is the smartest character on CNBC, and he has gotten into trouble by talking too much about manipulation on the air. It is for that reason that I am always suspicious about CNBC and the firms that support advertising in the media. All of the key media concerns are being bought up by entities that I can only characterize as being suspect. These peole will steal more from the investing public than what was true about the specialist system. One crook leaves and another takes over. This is the stock market mafia. The machine guns have been replaced by the force of capital.
prior entry: DEC 4
Closing Report: As I stated prior to this, the muddle of November is extending into the first few days of December. Investors are getting more and more bearish as the shorting has increased and more put options have been created. If you are a contrarian, you should turn bullish. The Dow Transportation average has turned interesting with the formation of a reverse head and shoulders. This particular average is important at this time because of its relation to the oil and energy markets. The transport stocks are heavily shorted as well which could become very bullish. Every dog has its day, and the transports could be next. Every analyst and fund manager remains bearish on the financials on CNBC with words of further doom and gloom to come. Maybe the system is now trying to get investors to go short the financials more than they already are.
prior entry: NOV 30
Closing Report: This Friday was an off-beat day. Weird things happened because of the end of the month adjustments by many of the funds. Many of these funds took profits on those issues that had already advanced. Many of the funds then went into the financials. As a result, many of the better techs took a hit. However, many of those techs that did get hit are still better than the financials. We may have to endure a few more days of uncertainty. You should note that while the stochastics indicators are showing a movement into overbought levels the MACD indicators are showing bullish crossovers to the upside. If oil continues to drop, the transports should advance coming off bottom formations.
prior entry: NOV 29
Midday Report: (1:45 ET) It may not be good to chase the rally at this time. The "November influence" will remain into the first week of December. This means that we will have a better opportunity to buy after a few more sessions. We have gone from very oversold to overbought in a very short period of time according to the indicators.
prior entry: NOV 28
Closing Report: The end of the world came, and it went, and now the sun is shining greater than ever before. At this point, you can expect some small correctional declines followed by rallies. In other words, we can buy on declines, because the indicators are still looking bullish as we come off oversold levels. We need to watch for oil to go down with the transportation average to go up. The transports are needed to confirm that energy costs will not damage the economy overall. Keep an eye on YRCW to see if it can go back to the 20 level which would be very bullish for the transports.
prior entry: NOV 27
Closing Report: This upward movement seems to be more solid. During the day, the market corrected and then came right back up. We will find out tomorrow morning if we get confirmation.
Midday Report: (1:00 ET) All those that reached for a rope and looked for a tree yessterday at the close made a big mistake. Almost every time that the market or a stock closes right at the lows of the day, it means that market makers can clean up on stock that is dumped at the close. I was buying Intel right into the close yesterday. However, I did say that the next week to two weeks may be volatile up and down. Nevertheless, I am bullish on December, because the indicators are still showing the market to be very oversold. Shorting the market based on the news concerning housing and subprime is a mistake.
Sunday Report: The market may not be out of the woods until we get deeper into December. Although we should rally for the very near term, the market will most likely face some violent moves right into early December. While some stocks may have already formed a bottom, there will always be some that will be late in doing so. Care should be taken in the meantime. The famous Dick Arms has just predicted that the Dow should go even lower by about 600 points although he remains long term bullish. There is good reasoning behind this. I have noticed that many of the tech stocks have lost much of the fervor that was present during the last major rally. Could this be an indication that much of the bullish force has evaporated? It could be that exchange insiders are now hoping to unseat the shorts on a rally and then take the market down again over the next two weeks. We should keep this in mind before doing a full commitment on any rally at this point.
prior entry: NOV 23
Closing Report: We are in for an advance over the coming weeks right into Christmas. Everyone that shorted on the news media static concerning worries and bad news on Wednesday are now under the waves. However, the short covering has not yet started. I am bullish on December despite any downside volatility that may occur in the meantime. INTC was a great buy today at 24.55 marking a two day double bottom. Just look at the stochastics indicators on the major averages, and you will see that we are coming off oversold levels.
Midday Report: (12:30 ET) Why is everyone in such a state of worry? Is it because the news media says that you should worry? How come the news media did not make you worry so much a few weeks ago? So I guess the idea is that now that the market is down you should worry more. So I guess when the market is up as it was a few weeks ago you should no longer worry. What a stupid game these people play. Do not worry too much about the financial institutions. The Federal Reserve will look out for them before it cares about you.
prior entry: NOV 21
Closing Report: Despite the fear that is now being spread on CNBC, this market continues to hold well. There seems to be a force from within the market that is trying hard to get investors to sell or go short by employing a fearful volatility of price movement. People get easily scared when the market drops sharply. The period from Thanksgiving to Christmas has been historically bullish. With the middle of November being the dark area, the worse may well be over. However, there is still an air of fear being spread on CNBC by certain parties. Everyone seems to be hedging with a negative bias. Well, I am not hedging here. I am bullish now despite all this crap about the sinking dollar and the credit crunch. Nevertheless since nothing can ever be guaranteed in the market, we should continue to watch that support level on the Dow in the range of 12800 to 13000. The big techs do not care about the dollar going down and they do not care about the housing problems. People will keep buying new gadgets.
prior entry: NOV 16
Closing Report: On this Friday, they took RIMM right down to 96.80 and then took it back up to the 108 level. That is what I mean about the scam behind options expiration. This implies heavy accumulation by exchange insiders. Accumulation also occurred in Apple and Intel. As all this was going on, analysts were reporting that money was leaving these stocks. What a crooked bunch! If that was true about distsribution, then how come the on-balance volume in these stocks kept going higher throughout the day??? Bring on December...... Note on COPY: If you have had it this long, then why in the world would you sell it now. Keep COPY and play out the hand.
Morning Report: (11:30 ET) This morning's decline was options related. Even as the market averages showed but mild weakness, some of the big techs were taken down sharply. This indicates that is is options related. It is unfortunate that so many inocent investors do not realize this. The result is that so many people misinterpret the weakness as being bearish when it is really very bullish. It means that the big guys are buying stock on the weakness as the small people bail out. INTC is one of the best firms around and yet it is being kept close to the 25 level for a reason. It is being drawn to the 25 options strike price level on this expiration day. It is for this reason that I totally detest having options expiration every month. It is crooked and it is a travesty against the average investor who does not comprehend how the market maker operates.
prior entry: NOV 15
Midday Report: (2:00 ET) If the rally had continued, I would have turned bearish by early next week. Instead, I now feel bullish about the future. Options expiration is having a major role in this present decline. I can tell by the action in the big techs like Intel and RIMM. INTC is being kept close to the 25 level where there is a big options concentration for November. This means that stock is being sold to unwind the options position. The same holds true for Research in Motion. RIMM remains very oversold at this point. However, stock is being sold because of options which in turn causes others to also sell into the decline. The Blackberry product by RIMM will continue to do very well along with Apple into the month of December. INTC should be at the 30 level with all things considered compared with other stocks.
prior entry: NOV 13
Closing Report: Well, the end of the world came once again, and it went. Most of us are still here. On Monday as RIMM came off that low trade of 100.01, I was buying into a long option position. It is amazing how things come together almost as if a script is already written. The market was waiting for the high flyer techs to spike down. Both stochastics and the MACD were bullishly oversold on the charts of the major averages. Furthermore, the numbers came right down to the shoulder level of the prior reverse head and shoulders of the Dow and S&P. The news media was nothing but bullish today. Is it not amazing how the media is used to stir the market. Just a few days ago it was all doom and gloom as people fell into the fear that Goldman Sachs was going to reveal extraordinary subprime problems. It was just the reverse today. What people were dumping in a panic last week, they were buying back today. Meanwhile, brokerages and market makers were buying right into Monday's close knowing full well what was going to occur.
prior entry: NOV 12
Midday Report: (2:30 ET) I have been waiting for a definite clue as to the actual bottom on the techs, and it has finally happened. RIMM just formed a bottom at the 101 level which represents a total close of the gap that was on the chart. The market rallied right after the event occurred. It was almost as if it had all been planned that way. RIMM was a buy on this decline.
Morning Report: (10:00 ET) A near term rally is now to be expected considering the oversold indicators and that just maybe the bank stocks have hit a support level on the charts. This is options expiration week.
prior entry: NOV 8
Closing Report: Major support levels held as per my prior statement. The scene of the carnage is familiar. The news was negative on CNBC as one analyst after another announced that a recession was now assured. The CISCO CEO implied that the financial firms would not order as much as formerly expected. Then, Bernanke was shown testifying. His facial expressions were just as bad as that of Greenspan. While Bernanke will rub his eyes, Greenspan always rubbed his forehead. There is no difference in the implication. They are both agents of the same mentality with a script of words filled with constant worry and ifs and buts and howevers. People were selling left and right as they acted to avoid the impending margin calls, or the crash that was going to occur tomorrow. It was like Custer's last stand where panic became the result of not being prepared for the enemy. It felt like the end of the world. If you look back over the years on the Dow chart, you will see many spikes to the downside. Was it the end of the world then? We are still here and the sun will rise tomorrow.
Midday Report: (11:45 ET) Just as expected, market makers are squeezing investors right down to a bottom. Like vampires jumping on a victim, we are seeing blood being squeezed out of people. I have never enjoyed seeing Americans being manipulated like this, but I have always accepted the idea that this is the reality of capitalism. The larger banks have just about all revealed the horrors of reality. So now what? The banking index has to hold right here. You should observe the charts of the Dow and S&P. You should easily notice the recent reverse head and shoulders from the last downside debacle. That formation must hold without a further downside intrusion below the shoulder pattern. We are now right at that level. The big caps have taken the biggest hit as can be seen from the weakness in the OEX as compared to the S&P. However, keep in mind that the big caps can rally back just as strong as they went down.
prior entry: NOV 7
Closing Report: Well, here we go again with the panic. How many times have we seen this, and yet every time there has been a recovery. So what is the selling all about if it just comes back to the same place again? The only way that it can make sense is if you believe that it is all a screw job on the investor. The futures were manipulated to the negative overnight. It did not even happen as a result of investors selling. The futures were manipulated to the downside in order to get investors to sell. The news media took care of the rest. At this point, we should see what happens in the morning, because the market closed right on the lows. This was meant to get people to sell heavily right into the close at the market price. Some entity was picking up stock as the investor bailed out. This could happen first thing in the morning. The Dow and S&P are now very close to support levels which mark the prior shoulder area of the reverse head and shoulders formation. The first hour should tell us if it holds or not.
prior entry: NOV 6
Closing Report: The major chart indicators are showing that the odds favor a near term rally in the major averages. The S&P has formed a double bottom formation off of the 1500 level. This is a very bullish sign. Meanwhile, INTC is going to new highs, and I will maintain a heavy position in this issue. RIMM continues to get upgraded as expected. While investors were kept focused on the problems of subprime, exchange insiders (brokerages, specialists, market makers, etc.) were accumulating for this rally. The media is under the control of the big guys and this will become more and more dangerous to our way of life. These people that control the media can write the script that is presented on TV and everywhere else. Those who control CNBC would never put anyone like me on the air, and if they did, they would make the proper criticism to make me look silly. The only person that has even come close to my way of thinking is Jim Cramer. He said it right on CNBC that about 100 people now control the market. Of course, I have heard rumors that the directors of CNBC have quite often tried to gag him from talking too much about those who control the market.
prior entry: NOV 5
Midday Report: (1:30 ET) For all those folks that have COPY, I wish all of you luck on this upward movement. You have waited long enough. Hold on to the stock until all information is released and on the table. There is still too much secrecy going on. As far as the general market is concerned, you can see that RIMM has broken to new highs and other big techs are not dropping with the financials.
Sunday Report: While the financials continue to cause worry, I have noticed that stocks like RIMM and INTC are actually forming bullish patterns such as ascending triangles. this comes right out of John Murphy's book on technical analysis. The upper trendline seems to be indicating 138 to 140 on RIMM and just over 30 on INTC. Each day now, CNBC has spent the whole day on those stocks that are creating bad news. What does it all mean? There is a good chance that we will find out soon. I certainly would not bet against stocks like RIMM or AAPL. Yet there are many people shorting these issues based on the idea that these stocks are overvalued. Then as the price goes higher, the shorts have to cover which gives more power to the upward move. Many years back, I made the mistake of shorting certain issues because they were overvalued. Yes, I know they were overvalued. However, the market is not according to mathematical formulation. If something is overvalued, then it can become even more overvalued. If you are short, you will have to cover the short which will cause the price to go higher and become more overvalued. This can go on and on for a long period of time. Is Apple overvalued? Of course it is. So what! It is still going higher. Eventually, these issues will form a definite downtrend. I did make a lot of money on Apple because I recognized its uptrend movement, and I realized that its product was selling big. I am now going with INTC, because it is showing an uptrend movement and it is in its best quarter at present with products that cannot be beat.
prior entry: NOV 2
Morning Report: (10:00 ET) At this very moment, the Dow is at the 13500 level and the S&P near the 1500 level on a decline after a strong open. This was the pattern that I mentioned yesterday. We will now see if it holds. I noticed that RIMM was quite strong, and I also noticed that certain key tech stocks were showing strong on-balance volume despite the decline of the first thirty minutes.
prior entry: NOV 1
Closing Report: Support on the Dow is at the trendline at 14500 and on the S&P it is at the 1500 level. This could be hit first thing in the morning. At that itme, we will find out whether or not a bottom reversal will occur.
Midday Report: (12:45 ET) The OIH (oil services holders) is starting to look like a short possibility. Today's rally move in the index is pushing its declining resistance line. The chart pattern is bearish and a break below 182 would crash the price. Oil is now pushing the upper limits of price where resistance continues to build. Meanwhile INTC has to break above that 27 level for a big run.
Morning Report: Once again, the overnight futures got rigged by those few people that control the market to screw the investor. All of that should be obvious by now. The only question now is whether or not the major dealers want a greater correction or simply accumulate on this decline. Certain sectors remain strong. The oil related stocks are not good along with the financials. Note: Intel is actually near the upside. Apple and Rimm are not as negative as the averages. I would not sell the techs here. Hold everything, because the overnight futures is nothing but a trick to make people sell.
prior entry: OCT 31
Closing Report: Right after the Fed made its announcement of the 25 point cut, the market wavered and then fell. Over a period of several minutes the big tech stocks took a dive. Then, the true strength of the market came through as RIMM, INTC, etc. came back to close near the highs of the day. This explains the bottom reversal in the semiconductor index which gave us the clue that the semiconductor stocks would be supported by the general market. Now we watch to see if the Dow and S&P can break to new highs. If this advance continues into early November, we still could see some sort of correction this month once the indicators turn overbought. For now, we go with the bull.
prior entry: OCT 30
Closing Report: The SOXX index for semiconductors has signalled a buy with the same holding true for INTC and AMD. The only concern here is that the S&P is showing a little overbought. However, it is interesting that Intel showed strength on Tuesday with the market down. At this point, I will maintain my position in INTC. The general market will now depend on the Fed decision.
Midday Report: (12:45 ET) Wednesday will be another nail-bite situation with the Fed. At least 25 basis points will be needed for the market to continue. Meanwhile, the indicators that I watch including institutional investment, VIX, stochastics, sector movements, etc. seem to be indicating a continuing bullish movement. I do believe that on the last correction the smarter hedge funds covered shorts while the public assumed more on the side of short positions. Although it is yet too early to be sure, I have noticed that the SOXX or semiconductor index may be forming a major bottom which may show up on the AMD chart. INTC is the leader and is holding well on market declines at this time. If this is a bottom on the semiconductors, then it bodes well for the overall bullish outlook on the market. INTC should be at the 30-32 level when considering the real numbers of business performance. AMD dropped recently on poor quarterly performance, but its guidance is up for the present quarter. A few weeks ago, analysts were saying that gold would correct, but instead it went higher. Some said that oil would meet with resistance, but it went higher instead. Now, analysts are saying that oil will hit $100 soon. Well, I would not bet my life on it. Oil prices have been turned into a game on the exchange. In other words, it no longer represents reality. With these high prices, oil could very suddenly come out of hidden storage tanks in Africa, South America, Russia, and various Arab nations.
Sunday Report: The past few days has left a bullish upside reversal pattern on the S&P which comes at a time period when the Fed may make another bullish decision. If the Dow and S&P can post a gain on Monday, the bullish pattern will be confirmed. Keep watching the SOXX chart to see if a similar pattern emrges there with stocks like INTC and AMD.
prior entry: OCT 26
Closing Report: The market is breaking above near term resistance. SNTA is also going higher on this rally and should be held longer. The semiconductors have lagged. You should note that they will usually rally from October to November to the end of the year. So far, INTC is lagging. However, I am seeing evidence that investors are being taken out by design while inside forces accumulate. We should know by next week for sure. The next minor resistance on the Dow is 14000. I remain bullish. Next week will be the Fed decision on rates.
prior entry: OCT 25
Closing Report: Once again, it was doom and gloom on CNBC throughout the morning. Yet, the market refused to crash and came back, but only after many investors sold and perhaps went short. For the techs, we need one thing to happen now, and that is for the semiconductor index to bottom. Today, I got the impression from observing the index that indicators are saying that a bottom is at hand. INTC remains the leader in this group. I have observed that perhaps INTC formed a near term bottom yesterday at its support level. Of course, we wait for confirmation on all of this. We should have a better idea by early next week. Ending Note: Believe it or not, but Microsoft will actually create a tech rally here. MSFT......back from the grave......the end of the dead cycle.
prior entry: OCT 24
Closing Report: So far, I was right about the upside reversal. We now need something more positive on Thursday morning.
Midday Report: (1:30 ET) According to technical indicators, we should see an upside reversal. Stochastics is showing oversold and the chart patterns are showing up as a possible head and shoulders over the last five day period. The market is down based on Amazon and Merrill-Lynch. Amazon is just static nonsense. Merrill-Lynch is involved with subprime problems and has nothing to do with tech. However, the big stocks like Apple and RIMM are taking the Nasdaq down. These problems are mostly technical in nature.
prior entry: OCT 23
Closing Report: Well, I was right about some things andmaybe a little off on some others. The market did behave on Monday as I had expected. It went down early to allow brokerages to clean investors out of their positions and then the market went up. On this rally, we now wait to see if the Dow can go over the 13750 resistance level. If it can, then we will have a much more bullish situation. The results for Apple were over expectations which is what I expected. However, the price did go much higher than what I expected. Nevertheless, AAPL should correct with a support at 175. There were too many analysts advising a buy today. I would not buy Apple at present levels as many are doing. Brokerages are unloading here. I remain bullish on Intel for the longer term. I also noticed that SNTA was indeed a good buy while under the 8 level.
Sunday Report: If the NAS closes below 2720, we will have a near term problem. If the S&P closes below 1500 and the Dow closes below 13500, we will face a near term problem as well. If the market closes up on Monday, then we will probably see a near term rally. Believe it or not, but the biggest problem may develop if the market goes up from here early this week. If there is a rally movement for a few days, keep your eye on the MAC line for the major averages. If the MAC drops to or below the zero line, then we could see a deeper decline in the making.
If Apple goes to new highs above 172 into the Monday close where the quarterly is reported, it could become a great short along with RIMM. Major support in the NAS will be set at 2650 if a decline occurs after a rally. The major support would then be at 1450 on the S&P and 13000 on the Dow. In other words, a rally here would only serve to allow brokerage houses to unload stock that was acquired on the recent decline. However, I would have to see evidence of this on such a rally. There is one more thing that I find to be very interesting. Look at any chart of the Dow. Can you see that Friday's decline took the Dow right down to the point where the Fed cut rates and the Dow rallied back in September. Is that just a coincidence, or does it mean something? It does seem to imply that a bottom occurred. Read my Saturday commentary. We now wait to see which scenario fits the best over the next few days.
Saturday Report: A few days ago, a visiting commentator on CNBC said that the market would go up because hedge funds were heavily in short positions and that they would have to cover which would rally the market. In reality, they will cover their shorts on a decline. Hedge funds are not run by dumb people, and I did believe they were heavily short. Now, I coupled that with Friday's closing action which ended at the lows of the day. Whenever the market ends either at the very lows or at the very highs, it means that it will reverse in the opposite direction. At the closing lows, I saw big blocks of stock being traded in sstocks like INTC, IBM, etc. While mutual funds were selling million dollar blocks, who was buying? Someone big had to be buying or else it would have crashed at the end of the day. These big block sell orders were market orders set at the close. The smart money guys who control the market know this. I submit that the hedge funds were covering their shorts. While this was in the making, CNBC had already advised viewers that going under 2750 on the NAS was a sell signal. CNBC said nothing about where the next support level was located which was at the 2720 level ( a stronger level). At this point, investors were now programmed to sell on fear that a major decline was in process. Unless China crashes, I propose that those with capital control will be buying on any further decline. Because of this reasoning, I will hold my positions in Intel. Furthermore, CNBC continued to advertise the crash of 87 throughout the day with negative overtones concerning a possible recession. Whatever the case, Monday morning will be interesting.
prior entry: OCT 19
Closing Report: First thing this morning, CNBC began to scare people with the constant story telling of the crash of 1987. Even the commentators were expressing bearish feelings. Then they expressed that a drop below Nasdaq 2750 was a big negative. I consider Nasdaq 2720 to be more important which can easily be seen on a six month chart. We will see what happens when that is hit. The indicators are still showing oversold. I did see people panic in some stocks where big amounts were thrown out at the market price. In reality, today is the same world that was here a few weeks ago. This up and down movement is to be expected. It all depends on how the media slants the story. As you know, I do believe that the media is under the control of devious individuals that have the capital resources to direct the market in their direction to suit their own motivations.
prior entry: OCT 18
Closing Report: According to technical indicators, a near term rally is still in the works. The market was slack today because of Bank of America and EBAY, but the market did hold well right into the close. SNTA has been aa good buying opportunity while under the 8 level as can be seen from its chart since it is now running along the lower support base line in a sideways channel. This stock is undervalued.
prior entry: OCT 17
Midday Report: (1:55 ET) When the market fails to hold the upside after getting good news, it does not bode well. The downside remains more dominant. I noticed that Cramer gave an opinion about where RIMM would be a buying opportunity. Since he hates to be outright bearish, he will admit to being bearish in sneaky ways. He said that RIMM was a buying opportunity at 100. It is true that major support is at 100, but that is about 12 points under. For that to happen, the market itself would have to drop by quite a bit. It now seems that investors will be kept in confusion by the volatility of many up and down days. Therefore, trying to predict a direction will be futile for a while.
prior entry: OCT 16
Closing Report: Luckily we may now go into a short term rally based on the good news from Intel. For whatever it may be worth, I did move into INTC just before the close based on the Intel chart and indicators. Stochastics has also improved on the general market. During the day, I also noticed that stocks like AAPL and RIMM began to show signs of internal improvement (accumulation). We now wait and see what happens on Wednesday.
prior entry: OCT 15
Midday Report: (2:15 ET) If you have read my prior comments, you will see that I am not surprised at today's decline. While things can reverse very quickly in this market, this near term decline does look serious. However, we will see if there is any improvement by the close. I am seeing some of the techs being taken down toward Thursday's low. I am also noticing that some of the downward spikes on heavy volume which normally form bottoms are not doing so so far today. I am watching RIMM to see if it can hold at 105 and above with its support trendline now at the 105 level. The quarterly reports will now become a deciding factor.
Sunday Report: What happened Thursday was an example of a tremor (warning). Meanwhile, the Chinese market is near the 6000 level already, and the Red Chinese government is acting to use monetary policy to slow down the economy. So far, the Chinese investor is not responding to that very bearish government action. It is as if the Chinese people do not understand the meaning of what is going on. Eventually, they will when it is too late. Just about every analyst and fund manager is now pumping the Chinese stocks based on future expectations. Does that sound familiar? The contention is that there are millions of Chinese ready to buy, and the business entities are in low supply. Overpaying for a stock based on the population of China is a fallacy. The Chinese stock market has no technical support to 1500 points below and even that is to be considered minor support. Our brokerage firms are now tied to these Chinese stocks which means that we will be highly affected if Shanghai goes down. The other problem is that every fund manager and brokerage rep that goes on CNBC is highly bullish. The reason given is that hedge funds are in heavy short positions. Many investment managers are also saying that stocks are undervalued based on recent quarterly results. Maybe we will get more clues this week about the odds of going higher. For now, I remain very cautious considering what occurred last Thursday and considering the 6000 level in Shanghai.
prior entry: OVT 12
Closing Report: Yes, the market was up this Friday, but it only made up for Thursday's loss with many of the techs actually under the Thursday high. CNBC continued to present people from brokerage houses that were very bullish for the near term. A rep from Merrill-Lynch was also presented with bullish views. If you look at the charts of the Dow, S&P and Nasdaq, you will notice that each chart is merely forming a right shoulder pattern with stochastics showing a downside trend. The rally today could very well be just a reaction from the crushed prices. In other words, people were buying what they considered to be bargains. Market makers must have bought tons of stock on the decline of Thursday. This means that they will rally in order to dump the inventory of stock. I also noticed that IBM did not rally very much today which I found to be unusual since good news is expected on Tuesday. I would be suspect of any rally first thing in the morning on Monday. Note: You might want to take a look at SNTA while it is under the 9 level.
prior entry: OCT 11
Closing Report: What a debacle this day was..... Earlier this morning they upgraded Apple with a 180 target. Apple was rallied up $3 or more. If you still think that all of this is kosher, then you deserve to get fleeced. I did have puts on Apple and RIMM since I was suspecting something in the air. However, I did not think that it was going to be a shocker. Nevertheless, now we have to figure what will come next. It is too early to even guess until we see tomorrow's open. We can only simply hold tight. There could be another reversal coming, but it may be too soon to act.
Midday Report: (1:00 ET) My bearish concerns have not changed despite any rally here today. Although we have new highs, the market has really not done all that much. You must keep in mind that the market is corrrupt and crooked by the interaction of brokerage firms and a select few people who get away with unethical actions because the law has not addressed these issues. Merrill-Lynch upgraded RIMM yesterday. RIMM went all the way to a triple top today and then went down into the red at midday. I suspect that M-Lynch and others dumped stock on the rally. If I am correct, was that crooked and corrupt? If someone is stabbing you with a knife, are you going to believe that it is okay to be stabbed if the law says it is okay. Something is wrong with the law here, and of course, it all points to the SEC. IBM reports on Tuesday and so it is being pumped up for that event with several promotional releases today by brokerage firms. All of these devious actions are continually being masked by the up and down movement in price. It is like the magician who wants you to focus in one direction while he does his trick in the other direction.
prior entry: OCT 10
Closing Report: This decline has done nothing to reverse the bearish indicators that I follow. Investors are still placing their hopes on better than expected reports. I noticed something unusual occur in the last half of the session. Now, you must understand that I have no respect for Merrill-Lynch, because in my opinion, this firm is one of the most corrupt on Wall Street. Just as RIMM was diving at the point of breaking support, M-Lynch issued an upgrade on RIMM stating that the target was moved up from 120 to 140. Investors reacted on heavy volume and rallied the price into the green. Why issue the upgrade during trading instead of before the open or after the close? The reason is that M-Lynch is crooked. It wants to unload stock on the rally. With an SEC license to steal, this firm can influence the price in this manner whereas you or me would be put in prison for life. You would have to be naive to believe that there was no motivation in releasing the upgrade at the very moment it was diving toward the lows. The release of upgrades by brokerage firms should be banned. The target is hardly ever reached in the near term, and most often there is a decline before the target is hit.
Morning Report: (10:00 ET) On Tuesday, we had a low volume rally based on news that we already knew about......the Fed minutes. There was nothing new there. Look at the S&P chart, and you will see a bearish rising wedge formation. Either we are seeing a top or perhaps the S&P will have to drop out of that channel by going lower and then form another upward channel. All of this could very well be just short term, but it would be foolish to go against the evidence.
prior entry: OCT 9
Midday Report: (1:00ET) When I saw both Apple and RIMM form topping formations this morning, I became a little more concerned. I dumped my Apple positions on the morning spike. On the long term chart, Apple has now gone above it long term trendline and is now overbought. RIMM is also showing up with a more bearish topping formation. We will know before very long. Many of the shorts have now been wiped out and that means that we could see a near term downside movement begin to develop later this week. Call option buying may also be increasing. It may also be worth noting that stochastics in many isues may be showing overbought. Alcoa reports today.
prior entry: OCT 8
Midday Report: (3:00 ET) The market remains positive despite the little declines that may be seen throughout the day. The big techs are doing well and the transports have held their ground at the lower channel line. New highs are also confirming the move. Apple did hit my target of 162-165 and may go much higher before the quarterly is issued. IBM is also going with the move.
prior entry: OCT 5
Midday Report: (1:00 ET) For the past several days, investors were teased to sell or short. For example, the inside forces took Apple right down to the 153 level where I witnessed over 2 million shares change hands at the lows over a period of two minutes. A whole bunch of people got screwed by the system. I know very well that people tend to laugh at conspiracy theories, but you would have to be very naive to dismiss something like this to pure chance. You have a handful of people who are in control with tons of capital with the cooperation of the powerful groups of brokerage houses and the results should be obvious. Apple is going higher right up to the quarterly report. Today's jobs report was in reality meaningless in one sense and completely relevant in another sense. The wait for the report kept investors in a state of confusion.......keeping them either in shorts or keeping them from buying on the declines. It worked. The reality of it all was that the jobs report was going to take the market up no matter what it stated.
prior entry: OCT 3
Closing Report: The market remains strong despite any minor correction that may occur. At this time, a correction can take place over a period of time without much decline in price. In other words, we can possibly have a time correction instead of one based mostly on price. Stocks like Apple remain strong. For example, they took Apple down to 157 twice in order to get investors to panic and sell. The same is occurring throughout the market. Unless Shanghai blows up, we will be okay over the near term. The new highs have been strong as institutions have been increasing inflows into the market.
prior entry: OCT 2
Midday Report: (1:30 ET) Support is now at Dow 14000 and S&P 1540, and for this to remain bullish, the market should close above these levels. The decline that we have seen today can still be considered normal and things remain bullish. The Nasdaq tech stocks are showing much better strength than the rest of the pack and this is a bullish sign. My impression of the situation is as follows. Those few people who are in control of this market want the market to go higher so that they can unload on a broad front of public buying before the Shanghai market bubble explodes. Control of the market can be exeercised by exerting a force on only the major stocks of the Dow and Nasdaq. Once that force is applied on those select few stocks, then the rest of the market will follow with the help of the public whether it be to go up or down.
prior entry: OCT 1
Midday Report: (12:15 ET) I suspected that we would break through the old highs. However, the confirmation will come if the S&P can close above 1540 and the Dow above 14000. If it does so, this will turn very bullish. Apple has now gone to new highs and IBM is also on the same mode. The only indicator that is showing overbought is stochastics, but even this could be sustained for a while.
prior entry: SEP 27
Closing Report: Of course, we should be cautious of Dow 14000, but anything can happen here. The market will fool the smartest of people. Today, even the declines looked bullish. As long as Shanghai holds up, we will go higher. I also noticed that institutional buying has been increasing which is very bullish. Therefore, we have a chance for a new high and a sustained breakout. We should witness the showdown by early next week. The big tech stocks continue to look bullish on the charts.
prior entry: SEP 26
Closing Report: The market still wants to claw its way to Dow 14000 or S&P 1540. However, certain indicators are starting to show impending weakness. While any correction that may occur could very well be minor, caution is still advised for those who trade in volatile issues. My near term target on Apple was 160 to 164. Will it get there before a correction occurs? Right now it seems to be correlated with the market. Also, we should be wary of the Shanghai market. If the Chinese market goes down, it will be sharp, and it could take us with it.....at least for a little ways.
prior entry: SEP 25
Closing Report: Even Cramer is now advising that some sort of correction is impending. While stochastics is showing that a correction is in order, the average lines are showing a possible breakout. It could be that a breakout could turn into a correction. The big techs are certainly showing up as overbought. I will conitnue to monitor these issues to see if any major distribution occurs. So far, I have not seen any problems. Treasury yields are continuing to indicate that the Fed will lower again. At this point, I must admit that a recession should not occur over the coming months. The market has now discounted the housing problem and is focusing on Fed policy. The S&P has snagged at 1540, but there has been no distribution. The Dow has also snagged at 14750, but without sign of distribtuion.
prior entry: SEP 24
Closing Report: I find it amazing that so many fund managers appearing on CNBC are now saying that the market does not have much further to go in the near term. I have also noted that many people are still willing to short Apple on every little dip. It does seem to me that the market could go further and fool the bears again or at least fool those who are sure that a correction is at hand. We should find out before very long. It is true that the stochastics indicator is in the overbought range on the major averages. Certainly the big techs are showing amazing strength and continue to maintain a strong channel uptrend.
prior entry: SEP 21
Midday Report: (1:30 ET) Right after the Apple fiasco in San Francisco, commenators on TV were saying that Jobs had made a big mistake in lowering the ipod price and reports came out of the woodwork that customers were outraged. Investors sold on that. It just goes to show you the power of the media to screw with your brain. I stated at that time that Jobs did the right thing despite the static. Today, we have the following release:
SAN FRANCISCO (MarketWatch) -- W.R. Hambrecht analyst Matthew Kather believes that Apple Inc.'s current quarter is shaping up so well that on Friday he raised his fiscal year earnings and revenue forecast for the consumer-electronics company. Kather said strong demand for iPods in particular is behind his new forecast. Kather estimates that for Apple's fiscal year, the company will earn $3.67 a share on $24.09 billion in sales, compared to his previous forecast of $3.63 a share on revenue of $23.67 billion. Kather said he expects Apple to sell 12 million iPods during its fourth quarter, which ends in September. Kather also said that he believes Apple's iPhone business is accelerating due to the company cutting the price of the device to $399 in the U.S. end of release............So, just how stupid is Steve Jobs? He is much smarter than the herd mentality. However, this is just another example of the stock market system. Meanwhile, I have checked the liquidity flow charts of the general market. Liquidity is strongly moving up to positive as institutions move back into the market. It suggests that even if there is a correction at Dow 14000 it should be minor. Of course, we could also break through to new highs if the inflows get stronger this coming week.
prior entry: SEP 20
Midday Report: (12:45 ET) Just a few thoughts as follows. The Fed is willing to save the economy at the expense of the dollar and maybe a little more inflation. With the dollar going lower, the U.S. international stocks should remain strong which really means almost every Dow stock. Meanwhile, mutual funds still have strong cash reserves. The Dow will test 14000. Housing will survive and so will the banks, because the Fed will see to that. Those people who give up their homes merely because equity has gone below the mortgage value may be making a mistake. Home prices will go up again. I have heard of people walking away from the home with over $100,000 already sunk into the down payment merely because of equity being down. It has become almost like the stock market. Once these people give up their homes, home prices will stabilize and go back up. My main criticism of our capitalist system is that our education system is not synchronized with the real world of America. They teach kids a bunch of fantasy in high schools instead of teaching them about understanding the real world of things moving within a spectrum between fear and greed. Only two years ago, people were pushing themselves against the greed side of the spectrum. Buy a home before it went even higher, or maybe buy a second home to make a killing. Now, it is get out before you go broke at whatever the cost. Americans know less about capitalism than do foreigners from third world nations. The colleges are now so filled with liberal teachers specializing in fantasy that it seems to me that more education merely becomes a greater hindrence. The performance of doctors and dentists in the stock market is proof enough. Those few people that know how to control the masses will always make the most. Those in control know how to use the media and the rumor mills. I have not placed much emphasis on rumor mills. However, I have now come to realize that operating a rumor mill is now perhaps the most powerful tool in the control of investors whether it be to turn them bullish or bearish. Do you know that a full fledged rumor mill can exist in full operation while being totally invisible.....so esoteric that management can never be identified. Crooked and unethical it surely may be, but it can never be proven in court. All of you that are reading my comments are witnessing the reality of these words every day. The Chinese market is still new to all this, but eventually a select few will learn the ropes. When that happens, those select few will create a panic in which money will flow from the average Chinese investor to the select few. To control the masses is as instinctive as apple pie.
prior entry: SEP 18
Closing Report: The situation is bullish in the market, but a short term trader still has to be ready for any short term correction that may yet occur. If the S&P can go over 1540, it could break out strongly to new highs. We should now watch to see if the Dow can sustain above 13750. On Tuesday, I saw market makers take down Apple in several cycles to get people to sell, and it worked. This can only mean that the crooked bastards that control Apple stock want it much higher. Before the year is out, Apple should be above 160. If the market does correct, it will be a buying opportunity. Note on COPY: I must pay tribute to COPY management for finding a way to maintain maximum power over shareholders without a majority holding of stock. They got off Nasdaq which was done purposely. They make 100% on their money each year. They legally keep everything secret from shareholders.....although not ethical. They do not officially go bankrupt although they should have by now. Without debt, they can easily inject enough money to keep it all going for years. They produce no revenue despite having so many products on display. Each year the stock price goes up by 100% from the lows. The biggest losers here are those who have kept positions long term....say for five years or more. I have never seen anything like it. About two years ago, I said that revenues should appear soon based on presentations involving Boeing and based on the promising presentations involving monitor displays. I have seen nothing as a result. Yet, $1000 invested at the lows 5 years based on a buy at the low and a sell at the high each year would have produced about $32000. Someone must have used the system to do exactly that. Added note: COPY can now be turned into a holding company by merely initiating positions in other entities.
prior entry: SEP 14
Closing Report: The deviant forces of those in control managed once again to easily turn the futures heavily to the negative side during the night. This was done in order to get investors to sell first thing in the morning.....and it worked. This tells me that the market has a little higher to go....at least. We will find out on Tuesday if it is sell on the news. Of course, the idea of selling on the news has now been highly advertised on CNBC. It will be a toss-up on Tuesday. The stochastics indicator has been moving back into the overbought level and so caution is once again advised. If the Dow can close above 13750, the situation may become very bullish. Note for COPY investors only: COPY is once again going above .95. If you look at the 5 year chart, you can easily see that it is now at the upper range. This means we have another showdown coming. If it can close above $1 and stay there, then there will be hope. If this thing goes down one more time to the lower level, I am going to lower the boom. I am going to advise all investors to lower the boom on management if this should happen again.
prior entry: SEP 13
Midday Report: (3:00 ET) As you can see, everything that I have said about China is turning out true. The Chinese Authority stated that it would now crack down on those that would export dangerous items to the U.S. I find it funny that it may still be okay for China to export toxic infested products to other nations. I really have to blame American greed. The making of money comes first and the welfare of Americans comes second, and in the end, a rogue nation (enemy) like China winds up winning. Meanwhile, we have that head and shoulders resistance at Dow 13750. As we climb to that level, we get closer to the day when the Fed may change rates on Tuesday. Short term people should be cautious here. This may become a no-win situation. The market may sell on the news.
prior entry: SEP 11
Midday Report: (12:45 ET) The situation in the market looks bullish to me. The head and shoulders resistance point in the Dow remains at the 13750. It would have been more bearish if the Dow had gone to this level last week. Instead, the market went down before hitting true resistance. This tells me that the control forces wanted people to sell in order for brokerage insiders to accumulate at the lows of Dow 13000. I have also noticed that bond yields have broken support and are going even lower. This means that the Fed will lower rates or else it will be so far behind the curve that it will be embarrassing. The dollar keeps going lower which means that the international big cap stocks will do well on the quarterly reports. This talk of a recession is now being advertised on CNBC way too much. Gold has broken to the upside and will continue upward over the longer term. I have been using Apple as an example of the overall situation in the market. I sense that insiders are trying to get Apple investors to sell. I have heard many so-called analysts claim that Jobs made a big mistake to lower the price of the iphone. He made no mistake. He did the right thing, because he has to sell as many phones as he can now in volume while the competition is lagging. What may have seemed to be negative was really very positive. Last week, analysts pounded away at Jobs as disgruntled buyers claimed that they had been betrayed with the price drop. Jobs then gave customers a credit of $100. Analysts then claimed that Apple would lose $100 million with that credit. Wake up people! That credit will cause those people to come back to the Apple store and spend even more. Meanwhile, because of the price drop, sales are going through the roof at Apple.
prior entry: SEP 10
Midday Report: (3:00 ET) The markets have held at the support levels that I mentioned in the prior report. Furthermore, can you see how investors are constantly getting screwed by some force within the market? Late last week, the news turned negative on Apple. These news releases continued right into Friday as people dumped right into the close. Today, it is a totally different story. If this does not make you highly suspicious of this whole market system then you must certainly be a complete dummy. Those in control also have control over the media and the futures exchange.
Weekend Report: Just as a reference look at the Chinese Stock Market. When will the correction occur???? When it happens, will it drag us down with it? Opinions will vary with the experts. I believe that it will affect our market, because we now have many ties with these firms. As for our own situation, I believe that the Fed is waiting too long to act. However, if the Fed does act, it could mean a further slide in the dollar. Keep in mind that the Chinese government is getting more and more leary of the Shanghai bubble. Furthermore, if the U.S. economy goes down, so will business expectations in China. There is a definite relationship between the U.S. and China. Note: There is a reverse head and shoulders pattern on both the Dow and S&P which is bullish. However, the Dow must stay above 12990-13000 and the S&P must stay above 1430-1440 in order to maintain that bullish pattern. This correction could end at any time with just one more small decline. I must admit that more and more fund managers are now turning bearish on CNBC. Keep in mind that fund managers do not control this market. Control is in the hands of just a select few people who are not themselves to be considered fund managers since they manage their own capital and direct the managers of many mutual and hedge funds.
prior entry: SEP 5
Closing Report: It was an interesting day in which investors were induced to sell.....convinced to sell. What does this mean? It means that the market remains bullish for now. The numbers being released concerning the housing market along with other items really represented nothing but static which was geared to get investors to sell. The same holds true for Apple. The news coming from Apple was so good that the only excuse for a decline was that people were selling on the release of news and it all went to an extreme. It played right into the hands of those people that wanted to accumulate Apple stock. The stock market is just a game that is under the control of casino keepers. Apple Computer is a real entity that has the ability to produce results. I am now convinced that AAPL will go much higher and that it may very well eventually announce a stock split. The major averages have not reached the major resistance levels that I have already mentioned prior to this.
prior entry: SEP 4
Midday Report: (2:00 ET) We should perhaps become more cautious as we approach that 13750 level on the Dow. I am also looking at Apple to see if its trading may coincide with that particular Dow level. Apple has a prior top at the 148 level. If Apple can go over 150, then it will have a more serious resistance at the 160 level. With Apple, it could all hinge on its show presentation on Wednesday. In other words, it will depend on its price movement tomorrow. If it can go over 150 on the event.....great.....but if it cannot go over its prior top by the day following the presentation event, then we could see a correction if the Dow gets close to 13700-13750. For now, I remain entrenched on Apple calls but with my fastest finger ready to take action.
prior entry: SEP 1
Saturday Report: Dow 13750 remains the near term target level. Wednesday will be a critical day. If Tuesday turns out to be a positive day, then we will have to see a little more volume on Wednesday.....or if we see Dow 13750.
prior entry: AUG 30
Closing Report: Do you see how certain major stocks keep going higher while the up and down movements in the averages keep investors worried? People are being fooled all the time and it is done purposely. Now that the news media has pounded away at the subprime problem for weeks, it means that we should no longer worry about that problem. Bury it and look for something else. However, now the question is whether or not the Fed will take action. So now the media is emphasizing the time period of September 17 and 18. If the Fed is going to lower rates, it will most likely do so prior to those dates and it will come out of the clear blue. We should simply hold positions and wait.
prior entry: AUG 29
Closing Report: The near term target remains at the 13750 level on the Dow. I still suspect that the Fed will eventually do something positive....whatever it may be. It is a good sign that IBM is once again going higher.
Morning Report: (9:45 ET) Is the market crooked? Whenever the market closes heavily downward right at the lows, it usually means that brokerage insiders are buying as investors panic right into the close on big blocks and even after the close. I saw this happen with Apple yesterday. Look at what occurred this morning. Furthermore, the futures were already highly positive last night six hours before the open. This can only mean that some powerful entities out there already knew that Apple was going to release good news this morning. Is the market crooked? What has all the years of education done for you? Well, school education is what you find in a book by a teacher that has also studied a book. What really happens in the market, you will not learn in high school or college. When Jim Cramer stated on TV that about 100 people control the market, he was in a very suttle way telling you that the market is crooked. However, it did not sink in to the brains of the mentally disabled who still believe that the market is regulated for the purpose of protecting the investor. Screw the idiots that sold Apple at the lows yesterday. Well, I still have my call options on Apple.
prior entry: AUG 28
Closing Report: The name of the game at the close is to screw investors out of their stock at the lows. CNBC is giving the impression that this is a big drop which is scaring people even more. A big drop to me would be 500 points or more at this stage of the game.
Midday Report: (12:15 ET) Just after 11:30 ET I saw investors jump out of the window on very heavy volume. I saw over 500,000 shares of Apple thrown out at the lows at just above 127. The Apple chart also shows a small gap being filled. The news has been on the negative side, but the news today was not of a serious nature. In other words, insiders were picking up stock as people moved into a fear mode. We will see how this plays out into the close. The important thing to realize is that this is not the end of the world. The stochastics indicators have just come off overbought levels and so this correction should come as no surprise.
prior entry: AUG 27
Closing Report: It was kind of easy to see that some sort of correction would occur. Whenever the market closes at the highs as it did on Friday, we should suspect that brokerage operators were dumping on the buying frenzy into the close. However, I did not witness massive dumping which means that a decline at this time will be very limited. The market still has more upside room. I would be more worried about Dow 13750 and then perhaps 14000.
prior entry: AUG 23
Midday Report: (12:30 ET) Yesterday the media spread a cloud over the market causing many people to sell at the lows of the day. Almost every fund manager that appeared on CNBC was now worried about recession. These same people only a few weeks ago were highly bullish about the future. I saw investors throw Apple right out the window at the 130 level. At that point I knew that Apple still had more to go on the upside. The number of new highs has been a problem, but at least the number of new lows has decreased by a lot. The resistance on the Dow is really at the 13750 level. This means that we have some room at this point. We should not become too occupied with the news on subprime at this point, because that cat is already well out of the bag. The media will now keep people worried about Fed policy. I have my doubts that the Fed will lower rates. However, the market is capable of overcoming that problem. The main issue here is whether or not those in control want the market up or down. I am inclined to think that those folks want it higher, but they do not want the public to jump in at these lower prices. Keep in mind that those in control can maintain an upward bias through their brokerage connections and capital resources. They create the news while the public merely listens to the news and reacts to the slant.
prior entry: AUG 22
Closing Report: Nothing has changed in my view. I remain bullish for the near term. I feel sure that exchange insiders are still long on their recent accumulations from public selling. I find it easy to see that the news is doing a good job of keeping people worried about the future. Insiders do not want the public to become bullish until it is time to unload on it. I have kept my positions on Apple call options since the media continues to report good news on Apple deals. I must admit that I admire Jobs much more than Gates. Gates was a one-trick pony while Jobs has continued to expand his company into new areas and has made good use of corporate capital. Gates has merely joined his liberal rich friends in throwing money out to bottomless pits of welfare programs. I will remain short term bullish although the indicators are not totally bullish.
prior entry: AUG 20
Midday Report: (3:00 ET) The market seems to be a buy at this point with indicators lloking good still coming off oversold conditions. Furthermore, there is evidence that the major institutions are buying again. We must also keep in mind that these institutions are in heavy cash positions. A so-called credit crunch should not be the cause of a bear market initiation. A bear market will start because of other more serious reasons. A more serious resistance will be at Dow 13750.
prior entry: AUG 17
Midday Report: (11:50 ET) On very heavy volume we saw a bottom on Thursday. Although I have been bearish on stocks like Apple and IBM, I did buy call options on Apple while at the 112 level. This was based on the extremely oversold conditions. The rally today is based on short covering after the Fed once again injected steroids with a rate cut to member banks. The Fed will always protect the banks and not the investor. Even if that was the bottom, the market could still linger here for a while just to confuse people. We will see how the indicators shape up over the next two sessions. We would have to see the averages go back above the prior support level. For example, the Dow would have to close above 13000 and the S&P above 1435. We wait for this initial reaction to wear off.
prior entry: AUG 16
Midday Report: (12:30 ET) The S&P has just about hit my major support level at the 1375 level. We may have a short term buy here. It is either that or we face some real bad stuff. I think we will hold for now.
Morning Report: (10:45 ET) With the action this morning, we are getting very close to another major support. We are now looking for some kind of bounce and so we wait. The media released bad news again which means that maybe we could see some support building. The market will almost never just go down to the ultimate bottom in one shot.
prior entry: AUG 15
Closing Report: The major averages have now broken down completely. The rally did not look good from the start. I was amazed at how many people jumped into IBM on the rally to 112.85. Apple and Amazon are no different. The major institutions have continued to sell into all rallies.
Morning Report: (10:00 ET) The major averages that I mentioned prior to this have all broken support. This morning the market is trying to rally back above support. We should find out soon if a decent rally is possible. If the averages close back down below support today, then there will be no support for a while to come. The big caps that have done so well are now getting hit. A wait and see attitude is still the best way to go for the average investor who does not go short. The action this morning does not give the impression of a bottom.
prior entry: AUG 14
Midday Report: (12:30 ET) The following support levels should now be watched. If the Dow closes below 13000, then the next major support will become 12500. There will be nothing in between. S&P support is at the 1430 level and the next support after that will be 1375. The Nasdaq has support at 2500, but a drop bleow that will mean a drop to about 2350 which is the March low. A bearish pattern on these charts would be if we see several bounces against a support line with lower highs coming from each bounce. Eventually the support line will be broken. This pattern is reversed when there are several hits on a resistance line with higher lows. There was some word out today that by the end of the month we would get a tabulation on the extent of the subprime situation. In the meantime, we will get nothing but confusion from the media as people argue back and forth about the extent of the problem.
prior entry: AUG 13
Closing Report: The financial media such as CNBC will always be good to watch so long as you realize what you are dealing with. Almost everyone on the screen gives the impression that the current financial problems are only temporary and that investors should not worry. If you have lightened your long positions, you should be okay. Those who are 100% long should worry plenty at this point. I firmly believe that the Fed actually wants the market to correct over the next several weeks. The Fed will not lower rates until investors who have speculated with heavy margin are buried. The major averages are now very close to major support lines. If these levels of support are broken, we will get another leg down. Those who are in control of huge amounts of capital know what the Fed is planning, and that is why those folks have sold into the recent advance and actually shorted. Note: I am assuming that all of you know that the uptick rule on shorting is now gone. This is dangerous. I am surprised that the SEC went along with this change. I have also noticed that not much was emphasized in the media concerning this critical event. This will give more advantage to exchange insiders who can now exert even more control by shorting at will into the market to drive it down. While it may be true that regular investors can also short, the problem is that exchange insiders will short cover long before the investor does. The injections that you hear about represent a deceit upon the investors. It is designed to keep investors bullish in the face of problems. In other words, it is a contrived illusion that all is okay. The injection of steroids is a temporary method. Only proper exercise and good practice will eventually solve this financial problem. In time, all of this will turn out okay.
prior entry: AUG 10
Midday Report: (12:30 ET) As expected, the steroid shots by Fed are working as the market does a rally which should serve to throw out the shorts. Ask yourself the following. What would happen if the Fed did not step in? The answer to that question will give you the trend over the coming weeks. Every analyst that presented on CNBC over the last few weeks stated that there was no major problem. Now we have the Fed stepping in with specific commentary by the President yesterday. Do you still think that there is no problem? Look at Apple! Look at Amazon! No one would even think of shorting these just two weeks ago. Even Cramer was bullish although hedging just enough to make it look good if the market went down. We should now watch and wait to see if the Fed really does lower rates.
Morning Report: (10:30 ET) It took time, but the warnings that I have been giving are now becoming reality. I do believe that the Fed will actually try to orchestrate a more orderly correction in the market by adding liquidity only to the point of keeping order. The President did imply this yesterday. In other words, we may very well see some decent rallies when the Fed injects more steroids. However, let us not miss the main point. Over the coming weeks, the market will probably go lower. Note: TKO reported good news that profitability would be at year end. TKO will prove to be a good stock to hold. Gold continues to look good amidst the current problems.
prior entry: AUG 9
Closing Report: If if there is a bounce, I would not buy into any rally. This does not look good. However, we will see if it holds at recent lows. The commentators on CNBC continue to make excuses that the financial situation is nothing to worry about. Actually, I do not even think that that is the main issue. The main issue is that those in control want the market lower.
Morning Report: (10:30 ET) Nothing has really changed in the physical market. The news media gives the impression that each day brings on something different, but that is how the media makes money. The problem concerning the financials has been here for a long time, except that now, it is being exploited by those in control who are now using the media as a means to affect investors. The Fed will continue to inject liquidity which is much like applying bandages to the wound. As a result, the market numbers will gyrate back and forth between the bad news and the continued injections of steroids into the market. The world will not come to an end at this time. I have already mentioned that Dow 13750 was the first line of resistance which would form the right shoulder on the Dow chart. If the Dow can surpass 13750, then the next target will be the prior high at the 14000 level. If the Dow cannot go above 13750 soon, then we would form the right shoulder on the Dow chart which would not be good. Concerning Barry Bonds.....I would not criticize him all that much for using steroids, because the American investor has been making money in the stock market by the use of steroids by the Fed. The Dow going to 14000 is like home run records being broken every few weeks because of Fed policy.
prior entry: AUG 6
Closing Report: As you can see, the goons of Wall Street got people to sell on Friday so that those in control could cover shorts and go long. Nevertheless, we must keep a watch concerning Dow 13750 where the left shoulder is situated. The Fed will once again come into play this week. Therefore, Wednesday and Thursday will be critical in defining the intermediate term trend. If the financial sector can recover with some strength into Wednesday, then the market will have a chance.
Saturday Report: On Friday with two hours to go, Bear Stearns created heavy volume selling by releasing that it was seeing the most serious situation in the fixed income credit market in 22 years. This blanket statement was done purposely in my opinion in order to get people to sell into the close. Bear Stearns is one of those firms that ranks high on all that is unethical and immoral. Yet, however unethical it may be, it did nothing illegal. There is no law stopping the release from the company, and there is no law which prohibits them from being in a short postiion going into the close. However, it is unethical for them to make the release so close to the market close without giving people a chance to question further the contents of the release. Once again, many people lost bunches of money with no law protecting the investor. However, Bear Stearns does have an SEC license to be able to screw the investor. At this point, we do not know if Bear Stearns wants the market down short term or long term. I will continue to predict that those who can exercise control with the power of money will continue to gain control over all of the media outlets and avenues of transmission. These people will now have control over the main financial newspapers, brokerage firms, and transmission lines. These people will also be able to exercise control over CNBC by the mere power of the advertising capital which CNBC needs to generate. In other words, if I went on CNBC with my philosophy, those who advertise there would threaten to pull advertising capital out, and I would be made to look like a fool for even thinking that anything unethical even goes on in the market. Despite what happened on Friday, the market really could easily have gone higher. The Dow still has it clear up to the 13750 level.
prior entry: AUG 3
Midday Report: (12:15 ET) Everyone on CNBC seems to be applauding the buy-out of The Wall Street Journal by News Corp. Well, I am not. The people who run News Corp. will use the Journal as another step in getting total market control. No one seems to see what I am seeing. Is everyone just totally naive? Or.....is everyone now in the media just part of the corruption of market control by a select few that have the power of huge amounts of capital? Well....let's see. Those who are employed in the media value their jobs, and they are hired by those who have the control of capital. That's a nice situation. News Corp. stated that it would exercise the same level of integrity as that of the former owner. Do you really believe that? Meanwhile, the media has been pounding the market with the subprime problem over and over again. At this point, I am starting to believe that the subprime problem is not really the problem that it seems to be. The banks have the ability to take it all in stride because the Federal Reserve is there to protect the banks and continually add liquidity to the system. How much money did investors lose because of the subprime debacle in the recent dive in the market? No one seems to care about the investor. Yet, the big guys were getting out for over a month now as the smaller guys were jumping into the market. Integrity? Morality? Show me the integrity of the system! As investors were forced out on margin calls, the big guys were buying late last week.
prior entry: AUG 1
Closing Report: We finally got some positive action right at the close. I was amazed at the trading in IBM. I saw it trade up or down by ten cents in a second. I have never seen it so volatile as today. IBM came down and closed a big gap just above the 110 level and formed a double bottom right around 110.06 over two days. This was bullish. I noticed the same with the Dow. Thursday will now become a critical day, because we need to see this follow through to a higher level. I feel quite sure that market makers and brokerage insiders have accumulated an enormous amount of stock over these two days.
Midday Report: (11:45 ET) We should see some kind of short term advance occur soon. The Dow could easily move back up to 13750 without much resistance. Meanwhile, those who can exercise control with the power of capital have accumulated all they want after having caused many investors to sell by the use of margin calls. You should easily how this system works. First, they got the shorts to cover and now they got those longs on margin to sell. I told you from the start that stocks like Apple and Amazon were way overpriced. Even as Apple hit the highs, there were brokerage analysts advocating a strong buy. If you cannot figure that the stock market is indeed crooked and legally so, then you have a mental problem. It is a legally crooked system, because the law (SEC) allows deviant behavior to occur by those with SEC licenses and by those who have huge amounts of capital in mainstream brokerage accounts. It will at times be that even technical analysis will be used against those who practice it. When the analysis dictates a buy or sell, those in control of the market will see to it that the actual market numbers go just a bit beyond what the analysis may dictate.
prior entry: JUL 31
Closing Report: Although it was a bad day, it remains a fact that the market did not go lower than it did on Monday......believe it or not!!!! Today, people were dumping right into the close on heavy volume again. At the close, I saw many big blocks of stock again. We will see on Wednesday if the market can hold at major horizontal support levels which are now just under the close on Tuesday. It does seem as if the Fed is supplying liquidity which seems to be bullish for the market. The decline could just be a ploy to get more investors to go short or simply sell at the lows. Meanwhile, the stochastics indicator is showing oversold on all fronts. Note: The decline that I have been expecting over the past few weeks is now in process which means that advances will most likely be only short term movements with the major trend downward. It will now be better to merely stand aside from this market.
prior entry: JUL 30
Morning Report: (10:30 ET) With so many people dumping this morniing (as I expected), this looks like a classic bottom.......at least for the near term. IBM went into the chart gap on very heavy volume which even surprised me. Let us see how this ends today on all the indicators.
prior entry: JUL 27
Closing Report: I saw a block of about 2 million shares cross on IBM at the very lows which means that we will most likely get a short term rally on Monday. The Dow and S&P closed at support levels as people dumped stock and most likely market makers accumulated. The Dow should form at least a right shoulder at 13750, and then we will see if it can go above that level.
prior entry: JUL 26
Midday Report: (3:00 ET) Recently, I said that we were waiting for the other shoe to drop. Well, it is dropping, but can it be stopped from hitting the floor..... There may even be a rally. There will always be people buying. They were buying Amazon, Apple and IBM without fear this morning. People like Cramer are saying to buy tech. Okay, but keep in mind the PE of Apple and Amazon despite all the good news. I still find it hard to believe that intelligent people are buying Amazon at over 142 times earnings. Now we can see why institutions have been selling into quarterly good news. This overall declining trend will not end until institutions show signs of coming back despite any rally that may now occur.
prior entry: JUL 25
Morning Report: (10:30 ET) Amazon made 19 cents per share which was a good improvement. However, consider that people were willing to pay as much as $18 more per share. Can you see the insanity of all this. (19 cents compared to 18 dollars) How many years would it take for Amazon to make up the $18 in earnings per share? The answer is beyond your lifetime. The stock market is a fantasy land where everything seems to be pie in the sky. The financial media and those who operate it will try to brainwash you into thinking that the insanity is just and reasonable. It becomes that way so that others who are more in control will make more money than you. When the market went down to the lows of 2002, analysts were counting every increment in the PE's of stocks. Now, the PE number has been thrown to the seven winds. Note: The banking index has broken below its four year support. Check it out on bigcharts.com with the symbol BKX. This is a serious breach.
prior entry: JUL 24
Midday Report: (2:15 ET) The banking index BKX has broken support. Some of the big caps are still holding, but if the dollar reverses to the upside, this will put pressure on the international stocks. The closing action will be important today. If the market can recover by the close, it will give investors more time. If this slides sharply into the close, then there is deep trouble coming very soon.
Morning Report: (10:00 ET) I will most always watch IBM at the close for clues. Whenever IBM closes at the highs with big blocks after the close, it will usually mean that those big blocks were either sales or short sales by the specialist or brokerage house. This did happen at the close. Meanwhile, despite the rally yesterday, the futures went negative which is a crooked ploy used by those in control. I also noticed that people were still jumping into Apple right into the close yesterday. So what happens? AT&T was a disappointment this morning as it reported ahead of Apple. The financials continue bearish which is not a good sign. Yet, there will be people on CNBC that will say it does not matter. They will tell you that the techs will power the market even as the banking index continues to deteriorate below support levels. Over the past few sessions, analysts were busy raising the target on Apple all the way to the 220 level. Do you know what the PE would be? Apple is already at a PE of 42.
prior entry: JUL 20
Closing Report: Once again the crooked bastards that run Wall Street were easily able to run the overnight futures into the negative. The excuse was that CAT disappointed investors. As I recall, it was only a few days ago that commentators on CNBC were praising CAT saying that China was going to send this company to the Moon with so much business. As a result, people jumped into CAT like crazy. It just never ends. By the way, keep in mind that the financials account for a little over 20% of the market.
prior entry: JUL 19
Closing Report: The banking index tells the true story as banking stocks decline further. Bernanke stated that subprime losses could be around 100 billion dollars. I wonder why he admitted to that figure. Could it be that the figure is much greater????? Many people in the industry seem to think it is much higher. I continue to believe that the Fed is desperately trying to alleviate the problem by whatever means possible, and if that is true, then it means that the problem is much more serious. However, all of this was buried by the good news in IBM and the rally goes on. The problem with buying into this rally is that it can stop at any moment, and people will hold thinking that another rally will save the day. The gap that occurred in IBM from the 112 level to 114.68 will get filled eventually. Meanwhile, analysts upgraded IBM's target to 130. Everyone should know by now that the market is a game under the control of a few entities. IBM has been doing good business for a long time now, but that has never prevented the stock price from getting slammed. A terrorist event is still on the table. New York is like a big bomb composed of thousands of fuses with it being so easy to light any one of those fuses. The people who would light those fuses number in the hundreds because of our unability to stop foreign agents. Our system is so screwed up by justice department authorities with mental disorders that there is more chance that a terrorist would prevail over a police officer in our court system.
prior entry: JUL 18
Midday Report: (12:30 ET) Need I continue to repeat myself. Stay out of this market or stay short. The S&P has already matched its year 2000 high. The Dow touched on 14000. The hype on CNBC by Pisani has been nothing but bullish. We are going into reporting time while at the highs which means that all good news has been discounted. The shorts have just gone into a short covering scenario. Brokerage houses are unloading on the rally. Market makers will most always sell into good news. China is a loose cannon. Then, today, Bernanke gave hints of dropping that other shoe that I mentioned in my prior commentary. While CNBC has been saying that sub-prime loans are not going to be a major factor, the treasury department and the Fed have been desperately trying to unload questionable paper on foreign buyers. This is nothing but a red alert that all is not well. Many times I have alerted people that a top was coming......and yet the market continued to climb which would cause people to say that I was wrong. It is not easy to call an exact top because things usually go to an extreme.....in other words, beyond reason. At this point, I see something unusual going on. During other reporting periods, I noticed that many stocks like IBM would not rally substantially into the reporting day. This time I am noticing that INTC rallied right into the reporting day yesterday. Today I saw IBM rally to its high this morning with the quarterly coming out today. The good news is being discounted as brokerage insiders are unloading. We will find out soon. The time to buy is not when quarterly reports are the most bullish. Apple is not a good buy at this time, and yet all the analysts continue to rate it a buy with a PE of over 40. Even IBM has now come close to a PE of 18 which is not bullish for this stock. I will stay with gold. Note: COPY holders are going through the same routine as from the past five years. Someone is making big money on this stock in a range of say .50 to .95 every year. I believe it is both management and the market maker working in collusion. I have experience concerning BB and pink sheet stocks. The link between these two factions is like a magnet in the pink sheet market without strict regulation.
prior entry: JUL 16
Midday Report: (12:00 ET) The upper trendline of the S&P is now set at the 1575 level. This level could correspond with the release of some of the major quarterly reports this week including IBM on Wednesday. The shorts have been covering and one more upward move would dislodge the remaining bulk this week.
prior entry: JUL 12
Closing Report: You should not think that I am wrong in my cautious alert just because of a rally as we are now seeing. Many stocks are not going higher. The Dow and S&P can easily be pumped with a few stocks. The 30 year bond yield TYX continues to uptrend with the problem level set at around 54. The media got investors to hyped on the AA situation and got off the bond yield problem which is more serious. Shanghai is not as secure as what is being presented on CNBC. The latest commentary on CNBC was that China would not affect our market very seriously if it got hit. We are pouring too much money into China and we could get seriously burned.
prior entry: JUL 10
Midday Report: (2:15 ET) All kinds of reasons and excuses for the decline are all over CNBC today.. All except for the real reason which is that brokerage insiders and big institutions have been unloading stock for several weeks now. Apple has been going higher on the good news. It went up again today on the supposedly good news that it will produce a cheaper model of the iphone. Once again brokerage insiders were selling as the public jumped to the news.....thinking that it would go to the target price of 142 plus as given by brokerage analysts. The VIX is going way up on the chart. The chart pattern for the Dow and S&P is turning bearish as one minor support level after another is being broken with a triple top as of yesterday. What next? Will it come back again as people are now conditioned to believe so. We wait for the next shoe to drop.
prior entry: JUL 6
Midday Report: (1:00 ET) Indicators are showing the continuation of a short term advance with warning divergences. In other words, certain stocks are now being pushed to new highs while the majority of institutions are holding back. For example, IBM is now being pushed to the 110 level as its quarterly approaches. I would not be in IBM when the quarterly is released. People are also jumping into AAPL as if reaching for pie in the sky.....with the attitude that you just cannot lose. As I have stated in prior comentary, watch the TYX bond yield chart. It is rising off that gap-fill at 51. The market will not advance if that yield rate goes above 54. http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=tyx&sid=0&o_symb=tyx&freq=1&time=7&x=26&y=13
prior entry: JUL 5
Midday Report: (12:15 ET) Shanghai has broken down just below its near term support and is now in danger of a total breakdown. Meanwhile, the TYX bond yield has gone up again after having filled the gap that I mentioned here a few sessions ago. Now we wait for the first quarterly reports over the next two weeks that will determine the intermediate term. If these reports are merely as expected then we could be in trouble and should be prepared for a decline. IBM will be an important quarterly. However, we should closely watch the 10 and 30 year bond yields to see if the bounce off the recent low becomes more serious. The market will not withstand another raise in rates by the Fed.
prior entry: JUL 3
Midday Report: (11:30 ET) We see a rally on this short day based on some liquidity injections. However, the market averages are just merely reacting back to prior highs where resistance looms. The S&P remains in a down trend pattern for now. The SPY is going to the prior high for a possible double top. The VIX is trending higher which is negative. Meanwhile, the bond yields have closed that gap that I mentioned at the 51 level. This means that bond yields could once again move higher which would be negative. Meanwhile, we have quarterly reports approaching. The only thing that will save the market will be a breakout in the major averages as the quarterly reports are released. We now wait for further signs of the movement in trend. Institutional activity remains in between the breakout and the breakdown trendlines. So far....so good, but we remain on alert. At this point, I continue to feel that the Fed will not lower rates since the banks are all making money and could make more money if rates go higher. As I have always said, the Fed will stand for the welfare of the banks and not for the good of the banking clients.
prior entry: JUN 29
Morning Report: (11:30 ET) Nothing has changed and the warning continues. Bond yields have come down in the past few days, but it you look at the TYX chart you will see that the yield has come down to the gap that was created recently. This means that yields could rise right back up again once the gap is either touched or filled right down to 51 as can be seen on the following big charts chart: http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=tyx&sid=0&o_symb=tyx&freq=1&time=7&x=29&y=12 The recent low in the S&P went right to my support line at 1485. The present rally does not look very good and I can only venture to say that it is geared to allow insiders the chance to unload again. A close below 1485 would become a serious breach.
prior entry: JUN 26
Closing Report: I noticed on the IBM chart that there is a gap at about 96-97 going back a few months. There is a good chance that IBM will drop to that level before another bull run occurs. If the S&P drops below 1485, it will signal a breakdown on the chart with a good probability of a leg downward. Not even lower bond yields seems to be helping the market here. We will always have rally movements but something is missing here for the intermediate term. There is continued evidence that institutional buying is decreasing and selling into each rally is increasing. This has been going on for a while now. I will continue to be bullish on gold. I will continue to be positive on UCOI despite the dilution that has occurred as the company acquires working capital by selling stock. I have bought again at the .002 level. Good luck.
prior entry: JUN 22
Midday Report: (1:45 ET) The market does not always turn on a dime. I have been considering and presenting to you all of the bearish indicators for some time now. During that time, the averages went up but so what..... If you observe many of the major stocks you might be surprised to see that many have really gone nowhere. The averages were pumped by a few select issues and even those were taking turns. The lower cap stocks have done nothing. Meanwhile, bond yields have been trending upward which is a big negative. Even as the market rally began, many fund managers on CNBC were saying that the Fed would lower rates. Then, attitudes suddenly got reversed. Yesterday, I was amazed again by how many people were willing to jump into IBM as it hit 107 again. A bear trend rally is really something hard to understand. What are these people thinking? You already know what I think of trading on the overnight futures. It is one big crooked business run by some entity that can easily control the open. The futures are easily manipulated by the money that is so readily available by certain parties ( a few select people).
does it not dawn on you people how the market can be up one day only to be followed by negative futures overnight? Those who have control with big money are crooked in their behavior because the unethical behavior is not addressed by the SEC and Department of Justice. There are too many holes in the rules. The lawyers working for the government are more concerned with the easy targets that can promote their own positions. The people that now control the market with big capital are causing more damage to investors than all the managers at Enron and Worldcom. Keep a watch on the chart of the 30 year bond yield. Use the symbol TYX on big charts. Recently, it hit 54.08. A move above that level will mean big trouble for stocks. Meanwhile, the media is hyping the idea that Democrats are out to counter the stock market. While this may be true, it remains to be seen if it really happens. You better hope that the Democratic candidate for president is a moderate instead of a social communist.
prior entry: JUN 20
Closing Report: All that I have said prior to this stands. As of right now, we have a double top on the Dow and S&P. Meanwhile, the downtrending stocks continue to increase causing a negative balance. IBM was taken to its upper declining trendline today at 107. I find it amazing that investors were jumping in at that point. This market does not look good here with stochastics showing that it is all heavily overbought.
prior entry: JUN 16
Weekend Report: The charts of the Dow and S&P are now showing a double top unless the market can go above Friday's high. IBM reached 105 on Friday which knocked out both calls and puts at the 105 level. I keep looking at the gap at 96 to 97 on the IBM chart with suspicion. I could be just a matter of time for a slide to that level. If the market averages cannot go much higher by Monday or Tuesday, I suggest getting out of this market. However, I will try to get some numbers concerning the uptrend/downtrend issues. I still believe that over the past few weeks the larger institutions did indeed unload stock along with the brokerage establishment. The lower cap stocks have for the most part lagged the bigger cap issues. This, in itself, shows the lack of support for over 50% of the market.
prior entry: JUN 15
Midday Report: (2:30 ET) At this point something has changed. We are now at or near the recent highs. Will it be a double top formation on the charts of the major averages???? Over the past several months, the uptrending stocks have been positive in number.....well over 50%. Over the past few sessions, the number dropped below 50%. With the recent rally, the number has moved back up to just under the 50% mark. We may know by Monday or Tuesday the outcome of this. For now, it remains a warning alert. If the uptrending stocks cannot surpass the downtrending stocks soon, it will mean that the market will go lower. In my own opinion, I do not trust this recent rally. The media is not highlighting the trend in oil prices.....and oil is close to breaking to new high levels. The readers of this commentary must make their own decisions based on the indicators being watched by them. The point is that if this market begins to dive..... it becomes important not to fight the reversal trend because it could go well below 10% in movement.
prior entry: JUN 14
Morning Report: (10:30 ET) Nothing has changed since my last view. Over the near term, bond yields topped, but in the process some investors got kicked out. I stated that we were looking for a move to 1527 on the S&P. We are almost there. At that point, we will be at a critical level since it will form a possible right shoulder on the chart. If the S&P can go over that mark, then we could very well see another record run. However, for the longer term, there seems to be no doubt that higher bond yields are going to be a problem. So far, chart patterns remain positive.
prior entry: JUN 11
Closing Report: The market seems to be short term bullish. In prior sessions the market got weak because of the threat of higher rates, and of course, the yield on the longer bonds went up. However, the bearish hype caused many people to sell stocks as brokeerage insiders bought. The point is that the yield on the longer term bonds has now gone to a resistance level. If the yield now begins to drop over the near term, the stock market will go up again. Once the yield settles back down, then we may well see another corrective decline in stocks. For now, the market looks bullish. We can only watch for some things to happen. We should watch the stochastics line on the major averages to see when the line reaches the upper levels. Then we should watch to see if the S&P can reach the left should level of 1527. It would be highly bullish if the S&P can close above that level.
Weekend Report: Ordinarily, the sharp decline would come across as being bearish. However, there is one thing that counters that perception. Volume was very heavy on Thursday at the lows. The volume on IBM on Wednesday was tremendous and somewhat heavy again on Thursday as it closed near the lows. Whenever IBM closes at the low on heavy selling, it usually means that a bottom is taking place. My conclusion is that there was heavy accumulation in IBM. Now we wait to see if IBM can climb back to that point where it fell off the shelf at about the 105 level. Meanwhile, the stochastics line is just now coming off the bottom. Something weird is indeed going on here when you consider the slant of the news. The decline was based on the idea that the 10 year bond had risen to over the 5% level. The media slant implied that maybe the Fed was going to raise rates. This whole affair is leading to investor confusion. In other words, the implications presented by the media are lies meant to make people do the wrong thing and believe the wrong thing. Keep in mind that this is coming from someone that has been bearish. If the indicators begin to turn bearish again, then I will consider that the market could go lower in order to increase the bearishness of investors. We wait.
prior entry: JUN 8
Closing Report: The slant on CNBC.......from the end of the world to.....maybe it's not so bad. Now that insiders have accumulated loads of stock and many have sold at the lows, it all goes up. Do you see how the game goes? It is geared against you and it is all considered legal by the SEC.
prior entry: JUN 7
Closing Report: It was one more pounding on Thursday for good measure. There will be some sort of rally soon. This next rally could simply be a 50% retracement or it could form a right shoulder pattern on the charts. It does seem more likely that this time we will not see new highs and also more likely that a further correction will occur. If the longs are lucky, we will see enough rally for a chance to exit. Meanwhile, CNBC continues to further the thought of higher rates. If you will focus on how all of this is linked together, you should begin to see how the financial scene is totally under the control of a few people who control hedge funds that are linked to the major brokerage firms. It is like a script written for a TV program. Last week, there was plenty of evidence that dumping was going on by major institutions as more and more issues were trending down even as the major averages were being taken up. I did report on that. CNBC's Pisani continued on his bullish slant even as the big guys were unloading. What do you think? Isn't it great that our financial leaders are there to serve mankind? On a plate..........
prior entry: JUN 6
Closing Report: The closing was interesting. With just minutes to go, IBM traded well over 2 million shares at the lows with many big blocks. You know what this means....a bottom of some sort. Somebody big was buying at the 102.50 level as fund after fund dumped. We now wait.
Midday Report: (2:40 ET) Well, you have heard me more than enough talking about how the media is used by those in control. Only a few days ago, the media was presenting the idea of lower rates ahead with one fund manager after another saying the same. Amazing how quickly things can change. Do you still think this is all an act of nature???? Okay, now what.... Well, we could get a bounce off of this near term. After that, we will watch the indicators. There was a good degree of heavy selling this morning which could very well mean that insiders and market makers were buying for the short term. We must now watch to see if the uptrend channels will break over the coming few days.
prior entry: JUN 5
Midday Report: (10:45 ET) Indicators such as stochastics are once again showing that the market is now vulnerable to correction. However, we wait to see if there is any breaking down of the upward chart channels. The upward trend remains on the charts of the major averages, but indicators are showing that every one is at overbought levels. Meanwhile, I have one more gripe against the mainstream media. When I first heard about the Kennedy Airport conspiracy over the weekend, I tuned onto the TV expecting the airwaves to be full of coverage. To this time, I still have not seen a full report of the arrests on TV except for a thirty second blurp. However, upon tuning in to CNN and Fox, I was exposed to minute upon minute news of Paris Hilton as she prepared for jail. What is going on here? What power is now in control of what we see on the news? There was the Fort Dix incident and now Kennedy Airport. It is all being buried. The general statement from media sources is that this incident is not a major story. Paris Hilton is the major story. Meanwhile, there are those in Congress that are willing to open the borders. Also, there is indication with these incidents that al-Qaida is using manpower from the Spanish speaking people of off-shore islands and Latin America.
prior entry: JUN 1
Midday Report: (1:00 ET) The most popular market averages can be deceiving. If you were to just look at the Dow and S&P, you would think that just about every stock was now at the highs. Yet, as the averages go higher, more and more stocks are actually going into downtrends. A few select issues in the big cap sector are carrying the numbers higher because these carry more weight. Unless the other issues begin to gain again, the upside remains limited. Although we are seeing record numbers in the Dow and S&P, I will remind you that the S&P 100 is far below its record high. I will also remind you that once a correction occurs, it will be a sharp decline off the highs. We wait. Note: If IBM closes below the 106 level, it will form a downtrend.