prior entry: MAR 29
Morning Report: (10:00 ET) The futures were already positive last night. Is it not strange that the futures turn positive after a dreary day like yesterday??? Can you see how the futures can be manipulated to direct the market? It can be done with a small amount of money by those who have control over a lot of money in hedge funds and whatever else. The market remains bullish for now although it is selective. The tool that is being used against the investing public right now is confusion static.
prior entry: MAR 28
Closing Report: Bernanke said the following today:
"Thus far, the weakness in housing and in some parts of manufacturing does not appear to have spilled over to any significant extent to other sectors of the economy," said Bernanke. "Overall, the economy appears likely to continue to expand at a moderate pace over coming quarters." As you may know, I majored in economics in college. Considering the basics in economics, I deem these words to be really quite bullish. Yet, the media chose to dwell on some other words that were stated having to do with Bernanke's concern about inflation. Hell.....the Fed has been concerned about inflation for well over ten years now. Expressing concern about inflation is standard practice with the Fed. Can you see how these crooked bastards control investors? These people that control the market also control the media. They control the emphasis (the slant) of the headlines. The only inflation that I see is that Bernanke's head is getting bigger with time until it becomes as bloated as that of Greenspan. The more I see of this....the more contrarian I become. Either way, I will remain bullish on gold issues for the longer term and remain somewhat bullish on stocks until a major sell signal is given on the charts.
Midday Report: (2:45 ET) If you have UCOI, it has once again doubled from the low in a short period of time. My stance on UCOI has been to merely accumulate every time it goes to the lows and not to fear the new lows that we have seen in past weeks. What happens in the future will depend on the Deer Trail mill when it opens. The market is still doing okay despite these spurts of weakness. Today it was the Bernanke static. Whatever is in the news on CNBC is nothing but static geared to screw investors. Right now people are being kept in a sell mode or do nothing mode. The market would give us a sell signal if the Dow drops below the W formation that has been produced on the chart over the past month.
prior entry: MAR 27
Morning Report: (10:30 ET) Today's story of America's complacency with China is that ITT has allowed our night goggle technology to be subcontracted to China. ITT will pay a fine. This just goes to show you how lax our security can be. I am surprised that we do not let China produce our missile systems and then we can really save a bunch of money. Pay a fine! For what? Treason...... What the heck! China already has our Starbucks technology for making coffee. The market is holding well. Now that those people who were holding Martha Stewart on margin have been kicked out over the past few days, MSO gets an upgrade today. Just another example of how this crooked market works. Crap like this happens right before the eyes of all these college educated people, and it does not even register. So much for the education system in this country. Have you ever taken a stock market course by a college type professor? You might be better off taking a course on tournament poker. Note: Concerning the Chinese matter: The fine is $100 million. However, this violation occurred some time back. It should have been major news last year. Do you see how the media tended to cover it up. Congress should have jumped heavily on this at the time with no mercy. The coverage should have been as extensive as the Anna Smith story. Instead, we stupid Americans are being exposed to Anna Nicole Smith going through her acts of perversion over and over again on Fox, CNN, etc.
prior entry: MAR 23
Closing Report: There are certain stocks like Martha Stewart where I am seeing deviant behavior. In MSO, it is naked selling again where hedge funds are purposely taking it down which then causes the stockholders to sell the rest of the way to an objective price. In the case of MSO, the objective price may be met on Monday. I can tell that there is a deviant force involved, because every time a heavy buy comes in which would normally raise the price, a heavy sell order suddenly appears out of nowhere which totally soaks up the buy. These people that I am talking about are much more dangerous to your wealth than were the specialists of the NYSE. These hedge funds which have control of millions of dollars have paid off the establishment to continue to operate without strict rules and regultions as were the specialists. These folks can screw you into selling on a slide when you are on margin and it is considered legal by the SEC. The SEC is more concerned if you buy a call option based on a tip from a corporate employee. Does my commentary sound radical to you? Not if you have any common sense or logic at all. Everyone that bought MSO on margin a few weeks ago are being made to sell for a loss.....and this has happened many times before. Furthermore, this is going on in many other stocks as well. I will include COPY in this group. COPY is being used by some force to make tons of money while in a trading zone for the past five years. If at this time it drops below 70 cents, I will want you shareholders in COPY to realize that a screw job is in process. It makes no difference that I have been bullish about this stock in the past. I have had enough of this crooked crap whether it be naked shorting by hedge funds or deviant behavior by management. If I was a CEO of a corporation, I would be ashamed of seeing people who believe in the company being screwed over and over again. Enough is enough of this crooked crap. Year after year, the screwing of investors continues. That is why I choose not to focus on things like Enron or WorldCom. The biggest criminals of them all are still operating under the negligence of the SEC. The total amount of money involved each year in this fleecing of investors is much greater than Enron and WorldCom put together. Right now in the market, most of those who shorted or bought put options based on the negative slant of CNBC a few weeks ago are now being forced out of those bearish positions. Do you really think it is all just an act of nature???????
(12:45 ET) This link goes to a Jim Cramer interview which backs up my view on the futures manipulaltion http://www.youtube.com/watch?v=B7VUBPwIh...
Of course, Cramer also admitted on a Russert interview that about 100 people actually now control the market. Cramer also openly admits that he has manipulated the market and that it is all legal. Notice how he also says that the SEC is somewhat oblivious to the whole thing involving manipulation by hedge funds. Furthermore, he also says that CNBC commentators are used by these devious entities to present whatever view is needed to fool the public.
prior entry: MAR 21
Closing Report: Since the Fed did nothing, the advance continues. The Dow went above 12400 in a breakout from the correction mode. Also, IBM went above the 95 level which also marks a breakout from the decline range. Only a few weeks ago, it was the end of the world, and now we are near the highs again. Do you see just how deceiving the market can be? All those folks who shorted heavily in the belief that the market just had to go lower are now going to hand over money to the bastards that orchestrated this whole thing. Where are the CNBC analysts that were so sure of a further decline? The fact is that these so-called analysts were used as pawns by those establishments that were creating put options by the thousands only two weeks ago. Indeed, we may still have a big correction later in the year, but the point here is that many investors will lose money on the actions of the past few weeks.
prior entry: MAR 20
Closing Report: The best thing now would be if the Fed would just shut up. Everyone should already know that a cut is out of the question and so is a raise. Any further comment by the Fed is nothing but static that can be used to further confuse the public. Dow 12400 now becomes the breakout point. On IBM it becomes 95. We wait and hold. The shorts will be knocked out. Today's advance was once again steady and under control. Unless the Fed says something totally stupid, the advance should continue with some side movement.
prior entry: MAR 19
Closing Report: CNBC spent the whole day hitting viewers with the horrors of subprime lending with one character after another telling how bad things will get. Meanwhile, we have a rally that has some merit. The upside flow was solid and steady. We can expect a further advance now that so many have gone short in one way or another.
prior entry: MAR 16
Midday Report: (12:30 ET) Since this is options expiration, weakness is to be expected into the midday session. This weakness will cause many of the call option positions to retire at the zero point. This month is important because the bullishness of the past few months caused a tremendous increase in call option open interest for March. This is not the case so much for the coming months. At this point, people are initiating heavy open interest in the puts for the coming months which indicates that investors have turned bearish on the future. There is no secret that I tend to be contrarian and so I am now considering that maybe we should not be so bearish. Investors are being too influenced by static (politics, Iraq, Bush bashing, etc.). Meanwhile, those people who have control of capital on Wall Street will implement their own agenda while the slobs on the outside will worry about political nonsense.
prior entry: MAR 15
Midday Report: (1:30 ET) As you can see, options expiration is once again an issue in the market. Dealers are simply trying to keep the S&P at around 1400 to maximize their positions in relation to the options involved. I still believe that options expiration should be restricted to every two months instead of going through this sham every month. This system of options expiration is nothing but a scam against the average investor. As you can see, they managed to keep IBM below 95 in order to expire the 95 call options at zero. As a licensed dealer it is okay to purposely screw every holder of the 95 call, but the SEC will put you in jail for life if you trade on some inside information. We will know better about direction next week. It is true that too many people have been acquiring short positions based on the overwhelming evidence from the media that this market is doomed. I must admit that the indicators do not look good. The insitituions have slowed down. When you look at all the evidence, it does seem as if a crash dive is coming. However, we must keep in mind that the market is deceiving.
prior entry: MAR 13
Midday Report: (2:20 ET) With options expiration this week, they are selling for this unwinding of positions. As I stated prior to this, IBM will be kept down so that the 95 call options will expire worthless. There is nothing new with this theory. Today, investors are being kicked out by the continued news involving subprime lending and its implications. Of course, there is nothing news about the news. We already knew about all the problems. Although it still seems as if we have upside limitiations for the intermediate term, we may very well still see a further advance. We should continue to watch our oversold/overbought indicators as we go into Friday's options expiration.
Sunday Report: Over the past week, I gave you examples of how insiders will use the futures trading of index vehicles to control the direction of the market both at the open each day and many times during the session itself. Now we have another options expiration coming this week. Notice the following concerning IBM. The open interest on options at the 95 strike is quite tremendous as compared with the other strike levels. IBM was taken right up to 94.80 two times only to see heavy selling take it right back down. Why does the American investor not complain to the government about these devious situations. Investors are always quick to bring out the hanging rope when Enron is mentioned, but they will completely accept the obvious crooked system that has been born out of stock options. Concerning IBM, those insiders that created the 95 call option will strive to make sure that IBM is kept under the 95 level so that every one of those 95 strike options will expire worthless. No wonder it is hard to make money on stock options. However, the more serious implication here is that those people who own the stock get hammered into selling at the lows when these people see their stock sinking rapidly. I simply find it amazing that the government is so quick to hang a CEO for breaking some gray area law, and yet will allow the rape of thousands of investors by allowing the Wall Street establishment to create trading systems that work decidedly against outsiders. Wall Street is not a random walk as so many liberal-minded scholars seem to think. Consider a slot machine. A slot machine is not random as some may think. It is either tightened or loosened in a range allowed by law. That is why so many times you will get two of a kind in a row with the third column showing that same item whether it by 7's or bars either above or below the payoff line. The slot machines of the casinos are almost as crooked as the trading in the stock market. One very curious thing about the two systems of casinos and the market......they are both under the regulatory control of the government.
prior entry: MAR 9
Closing Report: Today's market action was actually constructive. At least, it showed that there was a good probability of more upside. However, the big techs continue to show weakness which is not normal in a bull market rally. Once again we face options expiration this coming week, and once again we will see massive amounts of call options go to zero value. Saturday night the clocks will be set one hour forward.......
prior entry: MAR 8
Closing Report: Are all of you now starting to see what I mean about futures trading? Yesterday, the market closed weak with people having to sell right into the close at the lows of the day. Then somehow without any news or any other logical reasoning, the futures were skyrocketed upward during the night. This sort of thing was not how it was back in the 60's or 70's. If you are keen to out of the ordinary activity, you would have become suspicious even long before now. The people who now control the market can easilly control the market with small amounts of capital by either selling or buying into the futures market (Dow, S&P and Nasdaq). Of course, by small amounts of capital I mean much greater amounts than what you may be able to muster. A million or two is nothing for these folks that I am talking about. So now that we are getting rid of the specialists, a new breed of predator takes over. Why is this always going to happen despite all of the useless regualtions. It is because these unethical bastards are all operating under dealer licensing with money as the motivation. There is no regulation on ethics when it comes to dealer buying or selling in the open market. One of these days, the market will close strongly followed by a crash in the futures.......and it will not even dawn on people that something crooked is going on.
Overnight Report: There are forces out there that want the market to rally higher to the point where all of the shorts will be forced to give up short positions by buying back stock from those who will dump what was acquired last week and last Monday. Once the shorts have been screwed, then we will see another decline. All we can do is to look for clues for this development to occur. Once again, I am telling you that the futures are being used to direct this market in order to suit those who have accumulated on the decline who will now sell at higher prices and then perhaps short as a final stage. The decline that we saw at the close on Wednesday was totally under the control of a force that was buying into the selling by the public. We now wait.
prior entry: MAR 6
Midday Report: (2:00 ET) Is it not amazing that once everyone and his uncle had dumped by the close on Monday at the lows of the day, the futures began to turn positive and rocketed upward throughout the night. Do you really think it was just an act of nature? Do you really think that the market is not run by crooked bastards as I believe? These guys make Vegas look like the ethics capital of the world when it comes to games of chance. Yes, the market is a game of chance. Just look at the commentary made by analysts on TV. I would be the first to admit that market analysis is a folly. I try to look at what the crooked bastards are doing and even that is more difficult than getting a passing grade on a college calculus exam. No matter how smart you may be, you will eventually make a serious blunder that can wipe you out. Why can that happen? It can easily happen because there is indeed a darkside force within the market that will continually counter any outside force that tries to employ logic.
prior entry: MAR 5
Closing Report: Too many people have now gone negative in their psyschology. Even the average investor is loading up on put options and even going short with the idea that you just cannot lose by going short at this time. I will admit that in prior weeks I have been negative on the future of the economy and that the market would eventually take a big hit. However, at that time, investors were being driven by overly bullish analysts on CNBC. Things have changed. Now, I see everyone turning negative, and I see put option open interest go through the roof. Before the market opened on Monday morning, I saw the futures market being manipulated by insiders to get investors to unload on Monday morning. Then, I saw a decent rally get thwarted by the same deviant forces that are out to screw the public. It was easy for these inside forces to step in and knock out a rally that was going on low volume. The day ended again on a sour note with fund managers calling it quits. What will these crooked bastards do next? These few people that control the market will screw as many people as they can, because it involves big money. These insiders are creating put options by the thousands and the public is buying them with the idea that stocks must go much lower based on last week's sharp decline. The overnight futures can now be manipulated to initiate an advance out of the clear blue and knock out those who have gone short or acquired put options in a very quick fashion. Be careful. Let us hold and see what happens next. This may not be the time to go short or sell everything.
Saturday Report: I have listened to the idiots that come on CNBC and I have looked at the charts of the major averages, and there is something that just does not register. Most of the people that come on CNBC have been calling for a 5 to 10 % correction. Well, the Dow has already done a 7 % drop off the top along with the Nasdaq. You can check for yourself. Yet, if you listen to the people on the screen, you will get the impression that the greatest drop is yet to come. If that is true, then we would have to get much more than a 10% correction. IBM has already registered more than 10% off the top and MMM, UTX and many more big caps have already come close to that. Something does not sound right about this whole affair. Investors are getting the impression that they should sell on rallies and perhaps short. One would now get the feeling that you simply cannot lose by going short or loading up on put options. Consider that IBM has dropped from the 100 level to 91 and has been even lower recently. Do the figures! Nothing has really changed in the economy over the past several weeks except what is fabricated in the minds of those easily influenced. Almost every commentator is now saying that we are in a bear market over the intermediate term. Should we be suspicious? You bet. I certainly would not mortgage the house in order to go short with the works. Everyone on TV is now talking about what I talked about a few weeks ago......the inverted yield curve, bad bank loans, bullish complacency, etc. CNBC never made a point of these items until now. So what is going on. I sense another screw job being perpetrated against the average investor. Jim Cramer is totally correct when he says that the market is under the control of about 100 people. These people will legally screw the American investor without any sense of morality or ethics. They can get the cooperation of the media to get people to sell or to buy at the wrong time. There has been a transition of power in the markets from the specialists to a totally different breed of animal.....a much more dangerous type of animal. The danger used to come more openly from tigers and lions. Now, it comes from a small number of lethal snakes that slither unnoticed in the background of heavily financed hedge funds that are closely allied with the big brokerage houses of Wall Street. These people have less morals and ethics than the specialist firms of the past. Furthermore, this new breed is less under the control of the SEC.
prior entry: MAR 2
Closing Report: The market sold off at the close with many big caps closing at the lows of the day. They took IBM down to the lows on very heavy volume at the close. This has most often signified a bottom. Whenever IBM closes right at the low on heavy volume, it usually means that the deviant forces of broker dealers and hedge funds are covering shorts and picking up stock. However, if there is a meaningful rally over the near term, it will most likely fail once these insiders unload their inventory.
prior entry: MAR 1
Midday Report: (3:30 ET) I get the impression that the inside forces want to keep people negative going into the close. However, because of the extremely heavy volume today, it is probable that we have seen a near term bottom. If the market dropped any further, we would be faced with a crash type decline which would not benefit those in control at this time.
prior entry: FEB 28
Closing Report: Whenever the market goes through one of these sharp declines off a top formation, volatility increases over a period of a few days with ups and downs. There are only two scenarios here. One is that the market will continue its decline to lower levels after a few days of sideways movement. The other is that the market will fool people into selling with only small declines here and there and then eventually trend higher again. Which will it be? The analysts and fund managers on CNBC all seem to think that the market will go below Tuesday's low. However, you should consider that the stochastics indicator is right now at oversold levels on the major averages. Let us see if that stochastics line goes back up to overbought levels over the coming days. It will be at that time that we can more safely assume that a further decline is in order. Bernanke seemed to defy what was implied by Greenspan on Monday. However, keep in mind that the commentary by Greenspan was misread. He never stated that he believed that a recession was probable. The media along with many analysts interpreted it all as a conviction of an impending recession. In reality, Greenspan merely said that there was a threat of recession if certain things did not fall into place. Well, naturally there will always be a threat of recession if things do not fall into place. This would be true all the time. The point is that the media representation of what he said caused many people to lose money on Tuesday. Was it just an honest mistake, or did media commentators not catch it, or did the control faction of the media allow it to happen that way? Those folks who talk on CNBC are really very intelligent people. How come they did not emphasize the real meaning of Greenspan's words and make a concerted effort to report what was really said by Greenspan? Instead, they talked about it on Wednesday.
Midday Report: (12:00 ET) Well, you can now clearly see what I mean about logic and common sense in the market. There is no logic except what the media wants to make of it. Yesterday, on CNBC at the close, all the experts came on the screen and stated outright that the selling would continue right into the open today. The logic was that fund managers would want to get out of certain precarious positions immediately. Totally 180 degrees from what was the logic, the overnight futures turned positive. Can you believe this? Furthermore, is it logical that so many big cap stocks are now lower than at times when they were producing less profit? Where is the logic and common sense? Despite all the record profits of the past several months, there are stocks like IBM that are trading lower than when times were not as good. I think that there was more logic back in the 70's and 80's than now. This means that there has clearly been a change in the guard (the deviant force that controls the market). If we were in the 70's and 80's, the market would have sold off again this morning. However, now we have a scam tool called the futures, and the futures market is a tool of control used to legally screw investors. If any of you ever make some big money in the market, I suggest that you take that money and enjoy your profit and never come back to this slime infested adiction called stocks. This morning Bernanke is on the screen trying to patch up the damage done by Greenspan's comment on recession. Despite the conflicting thoughts between these two people, I believe that it was all planned that way just as if it were written as a script for a soap opera. In other words, the Fed wants to justify its future action by causing certain things to occur in the market which in turn affects the economy and in the end protects the member banks. You should stick with those positions in which you have confidence for the longer term and not be influenced by those who have their own agenda. However, you should always be ready to counter emotional attachments in stocks if you should find yourself being used like a pawn by those in control. If you create enough racket at the doors of the SEC which is your right to do, it might at least fullfil some satisfaction on your behalf before leaving this life.
prior entry: FEB 27
Closing Report: Since I am deep into UCOI, I was not very worried about today. We should see a reaction rally after any sell-off in the morning. I simply bought some positions in anticipation of such rally. If there is going to be any further major problem, it will come off a reaction rally. The channel trendlines of all the major averages have been broken. This type of situation has happened before and is nothing new. The media will now slant things according to the desires of those who control the market by releasing thoughts concerning the Fed's next move. Remember that it is futile to use logic.
Midday Report: (12:30 ET) China has always been a disaster ready to occur when even shoeshine boys owned stock. This would have occurred whether now or later this year. The good thing is that China has nothing to do with us except for those who invested in Chinese stocks. I have always said that China is not a good place to invest. Our stocks are merely reacting in the psychological sense. I will stay with gold issues all the way into this year. We have been in a mild correction for several days. The drop as a reaction to China does not necessarily mean that we are going into a major correction at this time. We should know within a couple of days whether or not our support lines are broken. Our major declines are usuallly based on our own technicals and fundamentals and not on foreign markets. China has never been stable nor will it be stable for some time to come. A disaster in China will actually be good for us because lately the Chinese have become rather arrogant. Just mind your own business and consider your own stocks. You are living in the U.S. and not in China. We do not need the Chinese. They need us.
prior entry: FEB 26
Closing Report: We should see an upside reversal of the recent minor correction soon. Indicators are now showing oversold levels. A classic reversal would entail weakness in the morning followed by strength. There was some strong selling early in the day based on comments made by Greenspan. He warned of a possible recession later in the year. It is funny that he never was so outright with his words when he was in office. So far no support trendlines have been broken to the downside in the major averages.
prior entry: FEB 23
Closing Report: So far, this has been a monor correction as those that have occurred in recent times. No downside trendline has been broken as yet. We should see some upside this coming week. I still believe that a major correction will occur only once the bears have been wiped out in their put option positions.
prior entry: FEB 21
Midday Report: (11:30 ET) This morning's decline convinces me even more that the market will go higher over the near term. The reasons presented by CNBC as passed on by some higher force are geared to confuse investors. As I have stated many times before, there is no text book logic to the market. For example, HPQ reported very good results on the quarterly and so today it is down based on the idea that HPQ will find it hard to beat what it has done. How stupid this is! This is really the height of stupidity in logic that anyone of any education can possibly imagine. What it have been better if HPQ reported bad earnings so that those results would be easier to beat next time??? Are we living in the twilight zone? As you know, my degree is in economics. When I first read the passage...."In the end, we are all dead" I should have changed my major to anthropology where at least there is some logic. So now, it is bad that the economy is so strong in the numbers. Would it be better if everything was going to hell? Economics has become the art of deceit operated by people who are emplyed by crooks (the banking system and brokerage firms). The Dow is showing weakness based on HPQ. You will notice that the QQQQ has been up all morning despite the small decline in the Nasdaq.
prior entry: FEB 20
Closing Report: Although the upside breakout is not yet confirmed, the market did take a positive step in that direction. I was expecting a small downside move this morning to fool the average investor and it did occur. IBM came back after hitting near term support. Now we wait for a major confirmation. HPQ did report good results although there was some selling on the news. Overall, I saw no sign of any major distribution in the major stocks. It seems that it is too soon to go short and so we wait.
prior entry: FEB 16
Midday Report: (2:30 ET) I am keeping tabs on institutional buying from various sources to determine if we will break upward or downward over the near future. Domestic institutional buying has been slow for many weeks now with more buying power coming from foreign interests. Most charts on institutional buying are now showing levels where we could see a directional signal that could last for several weeks. I will report as it happens. The market has held right into this options expiration. Early next week Tuesday or Wednesday, we may see some movement either way. IBM has been kept down going into expiration just under the 100 level which means that all of the 100 calls will expire worthless and this is just part of the game that the goons on the inside will play at expiration. If IBM can advance over 100 and actually go over 100.90, it will signal a breakout. Although I remain defensive, I must admit that the market has a chance of going one more leg upward. Perhaps we will get a signal this coming week. Market will open on Tuesday.
prior entry: FEB 14
Closing Report: The commentators on CNBC are slanting deeply to the bullish side and this should continue for a while. Investors have to become really sure that this market will not correct by very much before such correction occurs. One more leg to the upside and everyone will surely believe that the days of deep corrections are over. Meanwhile, certain key tech stocks are just now starting an upside run from low level stochastics levels. Let us observe over the coming days if whether or not IBM can surpass the recent highs.
prior entry: FEB 13
Midday Report: (11:45 ET) As you can see, the decline of the past few sessions was meant not so much to get people out of the market but to get people to go short. The tendency over the past several months has been to have strength right into options expiration. Yesterday was a very low volume day which was geared to get people to go short by having them buy even more put options. Over the past few weeks, open interest in puts has increased noticeably over call options. Put option positions have increased by a wide margin on the Nasdaq QQQQ. Although the overall impression has been that investors are overly bullish as per the media, this situation is now being countered by the fact that even those who are bullish on the overall market are themselves expecting some sort of correction to occur. Even the bulls are expecting a major correction so that they can buy more at lower prices. The market continues to fool everyone by not complying. The major correction that everyone is expecting will come when least expected and the initial stage of the drop will be quick and sharp giving no one time to think about it. The decline of the past two days was simply giving people too much time to think about it.
prior entry: FEB 12
Closing Report: Although the market averages were down, I believe that I can safely describe it all as a good holding pattern. The market did not crash as some may have expected. As I have stated prior to this, even the biggest of the bulls have been expecting some sort of correction at this time. The market will always be full of surprises ready to fool anyone and everyone. Let us see how the numbers turn out as we go into options expiration this week. I still believe that gold and gold stocks will be able to weather any major correction when such correction does occur. Meanwhile, no trendline has been broken to the downside as can easily be seen on the Dow chart and the S&P chart.
Saturday Report: There is nothing conclusive about Friday's decline. It is too early to conclude that a major correction is about to start. The decline occurred at a time when volume was low. When the micron news hit, it did not take very much to take the market down since buyers were simply not in the crowd. In my opinion, we have heard much worse news than what Micron had to say without this sort of reaction. I did get suspicious when early in the morning the futures were taken down. As I have stated many times, the futures activity is a scam used by those who exercise control in the market. I would short the market only when some of the major trendlines are broken. We should find out very soon by Monday or Tuesday. At least on Monday we will find out if this decline carrys. Although we had too many bullish people in the market, many of them have been expecting some sort of correction. This gives up a double contrarian scenario. What is it going to be? Will it go higher because most are expecting some sort of correction, or will it go down because there are too many bullish analysts? About 26 Dow stocks were down. It does not take much for a 60 point drop. I saw nothing unusual about the decline. The media actually threw more fear into the air than what was warranted. When those in control want the market to really go down, they will create a decline of much more than 100 points right at the start of the move. Let us see what happens on Monday and Tuesday before we jump to conclusions.
prior entry: FEB 8
Closing Report: The market came back well from the lows and held into the end with signs of accumulation. CNBC did present several big time bullish fund managers that were actually warning that a major correction was now to be expected. Watching those big bulls turn negative actually turned me positive at least for the very short term. I remain bullish on UCOI and will add to my position on every decline. IBM, which is my indicator stock, remains at a level that could still take it to new recovery highs as a tech leader. I would never discount the importance of IBM as many seem to have done calling it a dinosaur. It will be just a matter of time before IBM does a stock split. There are other tech stocks that carry much higher numbers of shares and bring in less revenue.
Midday Report: (12:15 ET) As of midday, only two Dow stocks were up which is indicative of a bottom. However, for the market to maintain positive vibes while in a chart uptrend, we need to see some recovery by the close, and so we wait. Meanwhile, just about everyone is still expecting a major correction which is totally logical. However, the market will always have the potential to defy logic. It may yet be too soon to think short. I will simply remain bullish on gold and gold stocks. CNBC has spent the morning on the sub-prime loan problem with the banks which everyone should already know about and should not come as a surprise. If those who were in a fearful mode did not bail out yesterday, they surely must have this morning. Isn't the market fun?
prior entry: FEB 7
Closing Report: The decline going into the last hour was meant to dislodge investors before continuing the advance. It worked. Many investors did bail out at the lows of the day in many of the Dow key stocks that I watch. It is bad enough for people to make money without these tricks that are continuously being pulled. Very short term trading is a losing deal by the odds. However, many times those that have a profit will bail out when seeing those profits disappear on sharp declines that may well be orchestrated by broker-dealer market makers.
Midday Report: (1:00 ET) As you can see, the inside forces of the market want this to go one more leg to the upside. If this recent move continues strongly over the next two weeks, we may very well experience the highs for the intermediate term. We shall look for clues as we go along. We may need to see even more complacency among investors and fund managers for this to happen. If the inside forces of the market are to make big money by getting investors to buy as those in control unload, we will begin to notice that economic warning signs will be completely hidden by static as people become more interested in the stream of good news coming out of the media at CNBC. For now, the market should hold and go higher. We need to see a breakout in IBM above 100.80 which I expect to happen at this time.
prior entry: FEB 6
Midday Report: (2:30 ET) Halfway through the session and the market has been lulled into a slumber as prices declined. This is a bullish sign since the averages have not declined into dangerous levels. Market makers are using the day to acquire inventory to unload at higher levels.
prior entry: FEB 5
Midday Report: (2:30 ET) Although I still believe that we will see a big correction before too long, I do believe that we will see one more leg to the upside based on the amount of foreign buyers coming into the U.S. markets. The local buyers are not jumping into this market as much as the foreign funds. As you can see, IBM has once again traded above the 100 level with no sign of distribution as yet. We should worry only when we see extremely big block trades at or just after the close and when near the highs of the day. So far, this has not happened. The recent drop in gold was just a ploy to get people to turn negative since this market is highly manipulative. I remain very bullish on gold and expect to see new highs this year.
Sunday Report: The Dow Transports Average has very sharply gone to new recovery highs and is certainly a bullish indication at this time. Its reversal looks very positive for the other averages. As a result, the market should go higher over the next two weeks. If this becomes reality, we should see another leg up on the Dow Industrial average. Using IBM as an indication, we should see IBM go well over the 100 mark very soon to lead the techs. We shall soon find out. There will be many quarterly reports done this week on S&P stocks which may add some fuel to the averages. The VIX average has also remained in bullish territory although a bit on the extended side.
prior entry: FEB 1
Closing Report: At least for the near term, the major indicators have swung solidly to the bullish side. It seems to imply that any major correction should be set further out by at least two or three weeks. IBM was taken down by over one dollar and almost broke even at the close. As it dipped to the 98 level, I did notice signs of accumulation as broker-dealers got many investors to bail out. As I have said many times before, this is a tricky, dirty business. The market is geared to fool you. The important thing is not simply the price as is goes up or down. The important thing is how the price goes up or down. I now seems as if market insiders want prices to be near the highs by the next options expiration in two weeks. We shall keep tabs on that view as we go along.
prior entry: JAN 31
Closing Report: In my last few entries, I have stated that the market should go higher based on the actions seen on IBM. So far, there has been no sign of distribution in IBM. Eventually, we will get a major correction but not at a time when so many on CNBC are looking for it. We could get a lengthy rollover on the chart. If a very sharp blowoff spike occurs, then we can worry a little more. Did you notice that too many people on CNBC were predicting a dive in oil...... Have you also noticed that too many people are predicting a drop in gold..... Stocks will drop when least expected. If the longs are lucky, we could go until March.
prior entry: JAN 29
Midday Report: (12:30 ET) Take a look at BQI.....Oilsands Quest. The chart looks very bullish with the uptrend line now at 4.80 which is near the low of the day. Canadian oil and shale may be something to consider.
Midday Report: (12:00 ET) For now the market remains in a positive mode with not trendlines broken either way as yet. I once stated right here that part of the Chinese plan was to draw us in and then form unions against our firms to extract even more money out of us. This article was released today. This is just the beginning of the shakedown. It is being instigated by the central government. I do not like Red China and never will as long as it remains Red. The Chinese government is using our greed for profit to finance their own well-being which is to raise their standard of living at our expense while financing aggression against us throughout the world.
DJ Chinese Union Aims To Set Up Branches At US Firms In S China
HONG KONG (AP)--The state-sanctioned Chinese union in the southern province Guangdong, a key manufacturing base, aims this year to establish branches at all major U.S. companies with operations in the region, state media has reported.
Guangdong Federation of Trade Unions aims to "set up unions at all the more than 300 companies from the Fortune 500 in Guangdong," the official People's Daily newspaper reported Sunday, referring to America's largest companies as ranked by Fortune magazine.
The union group also aims to add more than 1 million members and to set up unions at 80% of foreign companies and 60% of private companies, the report said.
The All-China Federation of Trade Unions, or ACFTU, the national umbrella group for government-approved unions, is in the midst of a campaign to boost the group's presence in foreign companies, which employ some 25 million people in China but until recently resisted allowing labor organizing.
It has made progress, persuading Wal-Mart Stores Inc. in August to help set up unions at its 62 Chinese outlets. ACFTU said earlier this month one of its affiliated unions has set up at a factory owned by Taiwan's Foxconn Technology Group in the Guangdong city of Shenzhen on Dec. 31.
Current figures for union presence in Guangdong weren't immediately available. A man who answered the phone at the press office of the Guangdong Federation of Trade Unions declined to be interviewed, saying he needed approval from the provincial government's external affairs department.
Official Chinese unions are seen more as a tool of government control than an advocate for labor rights. ACFTU says its goal is to prevent disputes between workers and management.
Seeking to assure foreign companies, Guangdong Federation of Trade Unions Chairman Tang Weiying was paraphrased as saying in the Yangcheng Evening News' Web site Monday that Chinese unions "don't protect rights for the sake of protecting rights, but rather mobilize the initiative of workers to promote the development of enterprises."
"Many foreign companies are afraid of setting up unions because they were scared off" by unions in their home countries, Tang was quoted as saying.
The ACFTU has set a national goal of organizing unions at 70% of foreign companies this year after meeting its goal of 60% in a campaign launched in 2006.
China has about 300,000 foreign-funded enterprises with 25 million employees, or more than 10% of its urban work force, according to government statistics.
Unions affiliated with the ACFTU represent about 150 million Chinese workers. The government doesn't allow independent labor organizing and activists are frequently jailed and harassed.
prior entry: JAN 26
Midday Report: (2:30 ET) Simply by judging the holding strength in IBM, it seems as if the market will make one more push on some key resistance levels just overhead. Most likely by next week we will know if those levels are broken or failed. The averages in question are the Dow, SOX and Transports. At this time, even some of the bulls are calling for some sort of correction. When this happens on CNBC, it means that it may still be too soon for a major correction. However, everyone should be very watchful and not be overly committed to those issues that are now extended. The correction of the last few days has been much too orderly to indicate a major problem. We should know that the market is in real trouble when it takes a chaotic drop right off the top.
prior entry: JAN 25
Midday Report: (12:30 ET) For the near term, we may still see some upside volatility since IBM continues to show some strength despite daily weakness in the market. There is no sign of distribution in IBM at this time since broker-dealers accumulalted at the 95 level. Many stocks still need to report the quarter. If you bought UCOI (the cheapie gold stock), you should hold and continue buying on declines, because when it reports its first gold sale, it may well hit my target of .38 to .50. It will require patience. However, believe me it will not require as much patience as with COPY. If you bought at .006 to .007 as I did on my official entry, you will have more than doubled your money. I did acquire a small amount at .03 but I did not bitch about the error as some may have done and I kept on the assault to accumulate more. The biggest problem with UCOI will be to determine the sell point. The near term stabilization point should be .02 to .03. At least management does a good job of keeping shareholders informed.
prior entry: JAN 24
Midday Report: (11:00 ET) The market should continue to edge higher once again over the near term. It is still too soon to go short as the S&P chart still has some upside potential. There are also too many people now ready to pull the trigger. When the top is reached, it may very well come in a spike which we have not yet seen. Despite the big drop in IBM after the quarterly, it actually looks strong. I saw IBM go down this morning but I saw evidence that there was underlying strength perhaps as the major broker-dealers and other funds began to accumulate from those who gave in to fear. As I have said many times before, there is no logic and reason to the market except in what is fabricated by analysts. IBM has been much higher than this when it had less real value and making less money. If you bought UCOI at under one cent, it is now around .014. Believe me it is too early to sell UCOI. The processing mill at the mine site should be operable within two months and the company has enough capital to sustain to the start of revenue flow. The government has blocked the merger of XM and Sirius although it may still be appealed. It just goes to show you that there is still a touch of communism in our government. This is not a totally free enterprise system. Government mentality can never be efficent. The combo of these two firms would standarize radio receiving equipment in all cars and actually lower costs and expense to consumers. Instead, the government with its power hungry craze will always come up with excuses by saying that it acts for the good of mankind. It remains a misnomer to call this a free enterprise system. The increasing power of the liberal faction will not improve matters, because now we will need more government regulation to stop all of the problems of the universe.
prior entry: JAN 23
Closing Report: Because of the S&P chart, I believe that the market can go higher before a major correction. However, I also believe that we will see these levels again on the way down. Hopefully, we still have some time to breathe but only for the purpose of holding. The number of stocks which are in an uptrend continue to dwindle as compared to those in a downtrend. However, the number remains positive. At some point in the near future the ratio will turn negative. I can only estimate that it could very well occur over the next four weeks. The great mass of lower cap stocks still have not moved.
prior entry: JAN 22
Midday Report: (1:30 ET) If the market can hold without further losses into the close, I would not be surprised to see a further advance over the near term. IBM could very well be in an oversold condition after that drop on very heavy volume. The record top in the S&P is still above present levels. UCOI continues to stabilize and edge higher and I will continue with a hold or add to postiions on declines. This has evolved into my favorite position as I remain bullish on gold. I have been observing COPY at these levels watching for some sort of breakout. However, I remain concerned that someone is dumping on high volume trades. The stock should trade up on heavier volume and not remain neutral as occurred this morning. Be observant as to what happens on heavy volume trades today and tomorrow in COPY.
Sunday Report: On Mar 24, 2000, the S&P did hit the 1550 level. Is it possible that it is now working itself to that same level before turning back? We should at least keep an eye on this. If the S&P does go to 1550, that could very well be the perfect short and perfect sell signal. We will watch and wait. I watched Tim Russert's interview with Jim Cramer. Cramer did say a few things that back up my theory that there is a deviant power that controls the market. He stated outright that about 100 people control about $5 trillion through hedge funds, management funds, etc. that make money either on the bullish side or on the bearish side. He further stated that these people can either make a stock go up or down as they wish.
prior entry: JAN 19
Closing Report: IBM got hit hard. I must admit that its decline was not justified considering the results of the quarter. Something about all of this does indeed stink. The IBM chart now has a big downward gap which is highly negative in nature. We now have seen IBM and Intel take some big hits. I find it amazing that analysts are acting as if nothing has happened. Instead, CNBC will highlight that MSFT has finally gone over 30....big deal after so many years of screwing shareholders. So now what????? Apple has hit a snag. Dell is in limbo. Can we go to the moon without tech?
prior entry: JAN 18
Closing Report: IBM reported fairly good news on the services side but the hardward side was a little light. The result was that people sold into the after hours with trades as much as $6 down and up to 4 million shares. I could not believe what I was seeing. How can people be so stupid to sell in the after hours to the damn dealers that were sitting there waiting. I suppose in the end we can all admit that we are all stupid for even being in this crooked crap game. We now wait for the reaction to all this in the tech sector. As you well know, I have been rather negative about techs despite the recent rally. For the past few days, brokers upgraded IBM except for one while investors stumbled over each other buying this at the 100 level which was resistance on the chart. The target was upgraded to 110 and shareholders were in high spirits that 120 would be hit soon. While the lynch mobs in the movies are usually portrayed as being in the wrong, I must admit that I would favor a financial lynch mob against the broker-dealers that were unloading on the public over the past few days. Meanwhile, be prepared to accumulate more UCOI on declines.
prior entry: JAN 17
Midday Report: (1:00 ET) Despite any further rally here, I continue to be negative for the short term until a significant correction occurs. I am not saying that I am bearish for the longer term unless the indicators continue to deteriorate that I have already mentioned in prior statements such as the yield curve. Remember also that we should consider the various stocks that we may have when doing the analysis. Many stocks simply have not performed during this market rally. Even many of the major stocks are actually lower now than when this up move began in the S&P and Dow. Today, INTC was hit on a disappointing quarterly. IBM will report Thursday. The IBM report will be important as far as the slant that is taken. During this period of uncertainty which is not shared by most of the CNBC analysts who are highly bullish, I will continue to buy and hold my cheapie gold stock UCOI. I bought the bulk of it at .006 to .007 and will continue to buy at present levels. If you did buy on my stock watch entry while at those low levels, I can only suggest that you hold for a probable move well above .10 all the way to .38-.50 or until conditions should change either for the better or for the worse. With this situation, every penny move will mean a double off the initial investment. We wait for further activity from the company. It is very rare that a low price stock like this actually shows positive activity in the right direction with a flow of verifiable information being released.
prior entry: JAN 12
Midday Report: (12:00 ET) You will note that I have kept XMSR as a buy right from the 10-11 level as talk of a possible merger began to circulate. The talk has emerged again and it does seem likely that Sirius is meeting with XM. XMSR has no resistance right up to the 20 level. Once it breaks 20, it should move to the 30 level if the merger becomes more serious.
prior entry: JAN 10
Midday Report: (12:00 ET) In order to see truth you must first reject the lies. In order to see the scams that are perpetrated against the American investor, you have to realize the lies that are thrown out there by way of the media. Yesterday, IBM got upgraded and people were stumbling over each other buying at the 100 level. This morning AG Edwards downgraded IBM and those that bought at 100 got screwed. Meanwhile, those big concerns that unloaded yesterday are off free and clear. The SEC will not investigate any of this because it does not wish to rock the boat against those that have received an SEC license to legally steal. The American investor cannot do anything because the American investor is fragmented into individual units with no union. Furthermore, there is an overall policy in this country that says that a speculator (investor) will simply take his lumps as part of the risk. No one cares about the truth which is that the end result is dictated by a force that no one wants to admit does exist. Neither CNBC nor any agency of the government will ever pursue the thought that there is an ongoing screw job being committed by those licensed by the government. Meanwhile, Apple has received millions of dollars worth of free advertisement by the pumping of the stock by CNBC over the past two days. It was as if all of tech would prosper by the new revelation created by Apple. When static hits the brain, there shall be no realization of the truth. The major support on the S&P is 1400 and any close below that would be highly negative and so we wait. If you will note the VIX chart, you will see that the bullish downtrend has been broken. However, on the Vix you should now note if any breaks above the recent highs occur which would signal a bearish move as fear increases. I have already stated that there is plenty of evidence showing that the major institutions are shifting from buying to selling. At this point, there is no way of knowing if these negatives are only for the shorter term or for the rest of the year. We could still see a major advance later in the year after a correction. Certainly most fund managers on CNBC are favoring a banner year based on the idea that corporations will continue to increase profits.
I went to an Indian casino the other day. I saw this one guy bet five times in a row $200 on the field which is a very bad bet on the craps table. He lost every bet all five times in a row before walking away. This convinced me that even in the market there will always be people (many people) that will jump into rallies much like betting on the field on the craps table. This is much like all those folks that were buying IBM at 100 knowing full well that 100 was a snag point as can easily be seen on any chart. Oh, but all of that is easily washed over by those CNBC analysts that will say timing is not that important because a long term hold will solve the problem. So who cares about the short term trader. Feed him to the lions. The goons that sit behind the closed doors of the major brokerage firms will always favor this situation.
prior entry: JAN 9
Midday Report: (3:00 ET) It is an interesting day on Wall Street today, and I am not talking about the pumping up on Apple by CNBC. I am satisfied that I have no need for idiot-pods and idiot-phones. When oil sank below 55, CNBC jumped right on it to infer that the market was rallying on that news. Keep in mind that earnings are coming out soon. You should keep your focus on the big stocks and not on oil. Oil is not going to be the big factor in what happens in stocks. Your focus should be on what the big players are doing with their inventory of shares. The broker-dealers sstill have some time here as we wait for the big techs to report. Did you notice that IBM was taken to the 100 level today. It was like a magnet. You could just see it coming a mile away. Certainly the big guys saw it coming and perhaps even engineered it to match this time schedule.
prior entry: JAN 8
Midday Report: (12:30 ET) The S&P chart continues to show an increasing risk scenario on the six month chart. The channel that has been maintained for six months has been violated. The Nasdaq is already showing a topping formation. The VIX index is just now breaking to the upside which is showing an increase in market fear as well as other things. All of this has taken time to develop. As a result, many investors will believe that there is no longer reason to hear anyone who cries wolf. Well, the market has always been geared to fool people. Nothing has changed. After the rally of last week on WalMart, Goldman-Sachs did a downgrade today. Tricks like this are now becoming the order of the day. You will need more than good luck if you believe that the system of market operators are there for your good.
prior entry: JAN 5
Closing Report: If you really tune in to the markets and open up your sixth sense, you will see just how crooked the broker/dealer ystem can be. Yesterday, the techs rallied with certain stocks being hyped up by the brokers. Today, we get downgrades on INTC and DELL. On the rally since Wednesday, the volume picked up. Prior to that the buyers were taking it up because of a lack of sellers. On the rally of Thursday and at much higher prices, the sellers came out of nowhere to overwhelm the buyers. The buyers actually came in strong, but this time a mass of broker-dealers and others of the same gender unloaded on the public. For that reason, one can never rely on logic or scientific thinking in this market. The devious force that I am talking about even got people to buy transportation stocks despite the negative fundamentals based on the idea that the worst was now over for the year. You will need more than good luck with all this going on. The odds still favor those who operate behind closed doors...... Added Note: The slant on CNBC was that the Fed was more concerned over inflation and that it would most likely not lower rates for some time to come....which was taken as bearish for stocks and this came off the jobs reports. Day by day, it is as if there is a script already written by a higher power.
prior entry: JAN 4
Closing Report: The first few days of January will always be deceiving. We will know better by early next week which way this goes. Just keep an eye on the supporting trendlines for the major averages. For now, it does seem as if brokerage insiders are unloading on whatever strength is left which can be seen by the high volatility. The current rally in the techs are certainly getting rid of all the shorts which may be part of the strategy. There is still a lack of institutional buying. I have seen many small block trades move prices higher on the Dow stocks without big block fund trades.
prior entry: JAN 3
Midday Report: (2:30 ET) My impression here is that we have seen the top of this recent move for a while. Be careful. All the people that jumped into Sears this morning are now under and I see nothing for retail that is even close to hope. We should watch for another failure in the Transport Average. I continue to be amazed at how many people will always jump crazily onto a spike. Market makers and broker/dealers were waiting for this to unload.
Midday Report: (1:30 ET) The pressure build-up of the extra day off resulted in the upside spike this morning. These blow-off spikes are dangerous and is not a good day to be buying. We now wait to see if this holds. As I have stated prior to this, January is a difficult month to judge based on the first day or two of trading. So many times the strong rallies of the first days have resulted in deep corrections.
COPY holders now have more to think about with today's release. The release merely confirms that they have the screen developed which has already been surmised by holders. For this to now move higher, we need a deal which brings in revenue, and so we wait. If you have acquired UCOI, hold for much higher numbers because the move from .006 to .016 is nothing compared to the proper evaluation.
Saturday Report: I do not like the idea of the markets being closed on Tuesday. It will just be one more day of adding pressure to the outcome of the market on Wednesday whether good or bad. If any of you would like to write editorials that will go into an editorials section, please contact me. This type of written work can be on any subject. This will give you the chance to express yourselves on an ongoing basis. I will interact by email wiith you on giving further details if you are interested. Meanwhile, I wish all of you a very HAPPY NEW YEAR.
prior entry: DEC 29
Midday Report: (12:15 ET) Strange things can happen at the turn of the year. January is not always a strong period as can easily be seen on any chart. Many times investors will sell for profit in January for tax purposes instead of in December. I know that I would. Again today, it is one fund manager after another coming on the CNBC screen saying that 2007 will be a record year for stocks. Their word is that the yield curve will be solved by the Fed with rate cuts. After all that has happened, would you place your faith in the Fed???? Many of these fund managers also believe that housing has turned for the better and that the increasing foreclosure rate will abate. These guys are not even concerned about the falling dollar. Well, once in a while fantasyland does become reality and there can be cause for belief in Santa Claus. While the multi-nationals will profit by the falling dollar, the local front will not. Meanwhile the number of downtrending stocks have increased against the uptrendling stocks for the past three months. No one talks about that. I guess the excuse would be that all is okay if the big caps can keep going up and the other stocks really do not matter. The S&P average has failed to go to new record highs along with the Nasdaq. CNBC talks only about the Dow making new highs each day. The Transports continue to sink. The SOX index continues to sink. The Fed will not lower rates because the member banks are all making big money on the continued demand for loans at higher rates. UCOI has virtually doubled in a few days. Although this cheapie stock will gyrate around for some time, it has not yet reached its equilibrium point at the .022 to .03 range. If you have this stock, hold for much greater gains next year when it will become easier to judge its management. My objective on price remains .38 or greater.
prior entry: DEC 28
Midday Report: (12:00 ET) While CNBC continues to report bullish news reports about the economy, I extracted the following from the back pages. 12/28/2006
Dow Jones News Services
WASHINGTON (AP)--In a potentially worrisome sign for the U.S. economy, domestic trucking shipments declined by almost 9% in November, marking the largest year-over-year decrease in almost six years, the industry's largest trade association said.
The American Trucking Associations said in a monthly report released late Wednesday that its seasonally adjusted truck tonnage index stands at its lowest level since late 2003, following an 8.8% decline from the same month a year ago. The index fell 3.6% from the prior month.
Because more than two-thirds of all manufactured and retail goods in the U.S. are carried by truck, the industry is considered an important economic bellwether.
"Both the month-to-month and year-over-year decreases indicate that the economic slowdown is in full gear," Bob Costello, the association's chief economist, said in a statement. "One month certainly doesn't make a trend, but if we continue to see year-over-year reductions of similar magnitudes in the next couple of months, it could indicate a greater economic slowdown than economists are projecting at this point."
Costello cautioned that year-over-year comparisons might be skewed by the "very robust volumes" the industry saw during the same period a year ago.
The Alexandria, Va.-based trucking group said its tonnage index stood at 106.8 in November. The index, which stood at 100 in 2000, measures the weight of freight hauled by U.S. truckers, based on surveys from its membership.
Trucking companies have seen their fuel costs surge in the past few years, though they have been able to pass most of those extra expenses through to customers.
On the Nasdaq Stock Market, shares of JB Hunt Transport Services (JBHT) declined 18 cents to $21 compared with a high of $25.90 reached Feb. 16. Shares of Swift Transportation Company Inc. (SWFT) fell 39 cents to $26.32 compared with a high of $33.66 reached July 3.
Shares of YRC Worldwide Inc. (YRCW), the company created by the merger of Yellow and Roadway, gained 3 cents to $38.14 compared with its high of $51.54 reached Jan. 30.
prior entry: DEC 27
Midday Report: (3:00 ET) On January 3, 2000, the S&P hit a high of 1478, and it is now still under that mark. As a result, the media will only mention that the Dow is breaking new records. Well, maybe the rally will continue until the S&P reaches the prior highs. We can only wait. Meanwhile, all those who bought UCOI.....all you have to do is hold.
prior entry: DEC 26
Closing Report: Nothing has changed in my view for the present since next week will be the deciding movement either further up or down. I still see the institutions selling more then they are buying. Meanwhile, COPY is holding in a positive fashion without any blowoff volume and the chart does look bullish. I continue to wish COPY shareholders good luck for all the agony they endured on this one. UCOI has continued to stabilize and should go higher over time. TKO got more good news and continues to be a good prospect for the longer term. Retail and transportation continue negative.
prior entry: DEC 23
Closing Report: For the past several weeks, the market has actually been in trouble although no one has noticed because of the hype of the Dow making new highs with the approach of Christmas. There have been many stocks that have gone up but only marginally. There is nothing going through the roof. Analysts have only been talking about the prospect of higher earnings into next year. Not many people are considering the reverse yield curve, the decline in the Dow Transport Average, the troubling guidance by the Fed, the problem with subprime mortgage loans, the housing decline, the new membership in Congress, the tenacity of oil prices, etc. Anything can happen at the turn of the year. There are times when the market goes through the roof after January 1st. However, there have also been many times when January has been horrible. I am concerned that the advance to new highs came early. I am also concerned that too many people are still jumping into the market at this time buying stocks that are in trouble such as Wal-Mart. Of course, we can always say that logic and the market do not mix well. Despite all the agony that comes from fear and greed and the crookedness of the stock market, I wish all of you a Merry Christmas. Let us forget about this market garbage for just a few days now at least until Tuesday.......Merry Christmas.
prior entry: DEC 21
Closing Report: I have been short on WMT and YRCW because these particular issues are showing negative signs in fundamentals and on the charts. WMT should go below 45 while Yellow Roadway is showing support on a three year chart at the 30-32 level. WMT represents retail while YRCW represents the shipping of goods. These businesses represent the economy. When the economy is slowing down, these two issues will get hit or act as indicators of what is to come. Just a few weeks ago, most analysts on CNBC were saying that the Fed will most likely lower rates in 1907. Now, CNBC is starting to present commentary that perhaps rates may just go up because of inflation problems. Be careful. Gold began to go down when it was said that rates would go down. Maybe investors are getting out of gold at the wrong time thinking that gold has topped. I remain bullish on gold.
Midday Report: (1:00 ET) The long line of bullish fund managers continues on CNBC. These people will find logic to counter any bearish logic that you can possibly imagine. While no one really knows what will happen in the longer term, bullish comments on the screen will always cause many investors to jump into the market too early as has been the case all this week. Being in the Christmas spirit is no reason to be buying stock that is destined to go lower. So now Dow Theory has been completely trashed by the same fund managers that lived by such theory until now. The Dow and the Dow Transports have been going in opposite directions for some time now. It seems like no one is looking at this any longer. The reason seems to be that the expectation of higher earnings is more important. Now, most of you should know all about expectations by now. You can take expectations and shove it all. Even when expectations come true, you may find your position to be at the shakiest level. UCOI seems to be stabilizing and continues to be at a price level that is below the true value of its mineral lease assets. Wal-Mart should continue its downward trend, and a drop below 45.42 will mean a complete breakdown in support. I watch WMT because the retail sector is critical in finding support for a future advance.
prior entry: DEC 20
Midday Report: (1:15 ET) While the yield curve is longer term as an indicator, other indicators like stochastics and charts like the institutional index are shorter term. As I have stated in prior commentary, the insitituions are not pumping in as much as in prior months and they are showing signs of distribution. If the market breaks down below any of the support trendlines, these mutual funds will begin selling. The index is now showing channels extending sideways instead of upward as was the case in prior months. Each channel that is formed is simply not advancing much beyond prior highs. I can only speculate that January might not be a good month.....but we will see. Some stocks like Wal-Mart continue to trend down while IBM has been taken to its highs. The lower cap stocks continue to do nothing which is telling us that speculative money is not coming in.
prior entry: DEC 19
Midday Report: (1:00 ET) I realize the mentality and the reality about doing business with Red China (notice I tend to call it Red China which remains the reality of it all). So now the Commie Party has set up a branch at the headquarters of Wal-Mart in that nation. The message should be clear to all but the naive liberal mind. The Communist Party will use our greed to make money (investing in China) by getting the Chinese people to form strong unions to extract higher wages from our corporations in China. As for our own reality in our market, I am in full accord with the idea of making the boards-of-directors fully independent of corporate management. I will go further than what the SEC is proposing. The Chairperson should not be either the CEO or President and the CEO should be under the Chairperson at meetings. The boards have become nothing but a ceremonial collection of clowns. There are people serving on certain boards that already have major involvement with other concerns or have no interest on behalf of the shareholder. The CEO and upper management of many firms simply want to keep control of their BOD in their own hands with the shareholders locked out. Furthermore, the voting system in just about every public corporation is nothing but democratic. It is more like a dictatorship. Since many of you own COPY stock, you should be able to associate everything about what I have just stated. Dictatorships should be allowed in private firms, but not ever in a public company. Those who run public corporations that are listed on the BB seem to think that the rules should be different for them. Well, it is the fault of the shareholders for letting it go. If everyone was to arise, the inflow of the word to the SEC would eventually hit the mark and it would eventually hit the news. The SEC needs to be embarrassed into action.
prior entry: DEC 18
Midday Report: (1:15 ET) The rally into Friday's option expiration and today's early rally served well to allow certain parties the ability to unload stock. I did observe several big blocks in Wal-Mart which were either unloads by brokers or short sales to mutual funds. The retail sector should be avoided when the naive are buying simply because it is the Christmas season. If you still believe that the market is strongly bullish, take a look at the Dow Transports where we see a series of lower tops in a downtrend. If shipping is going down, how can the industrials be doing as good as the impression presented by CNBC.........
Sunday Report: The market will always have its unexpected turns. When you buy something, it may first go lower before going to your target, and the same holds true when you go short. Usually, you will think your move to be a mistake and may terminate the position only to see it go to your target level. The market is geared to make fools of us all. The most intelligent will in the end be humbled. For example, some time ago, I said that XMSR was a buy in the 10-12 range with a potential move to the 15 level. Well, before it went to that target range, it lingered in a most horrible fashion at the 10 level. Some force made it possible to get investors to drop out at the lower level before moving up. Now that it is at the 15 level, the CNBC media is pushing the idea that XM would be worth over 40 on a merger with SIRI. Will they merge? I believe they will eventually, and yes.....XMSR is worth 40 or more. Then, we must also worry about other devious forces such as hedge funds, broker/dealers and corporate management. When you own shares, the system is so devised that shareholders are actually treated like outsiders never knowing the true situation that is always known by management. If COPY truly does possess an advance form of screen at this point, the word should leak out through those in other firms who are dealing for the product. If this does not happen soon, then we will have a problem. We will once again patiently wait over a reasonable period of time not to exceed about six months. The same would hold true for my cheap gold miining stock UCOI. the processing facility is almost complete. The price will move up once they record a sale and only then will it make the move. As far as the general market, I say be careful because almost every analyst on CNBC is now highly bullish.
prior entry: DEC 14
Midday Report: (12:30 ET) The rally today is options related and is centered on the big players. Smaller investors should not be buying today or tomorrow. Everyone should wait until the air clears by Monday. Each institutional index that I have observed is still showing a topping pattern despite the higher numbers over the past few weeks. You can see this on the chart for IXH.
prior entry: DEC 13
Closing Report: We should find out soon if this is a topping process or not. the market has held well only because sellers have been lacking and not because buyers have increased. It does seem as if the major players are selling into each rally. IBM did reach that 95 level today which may be resistance. Meanwhile, Wal-Mart is showing up as if in a break down mode on the six month chart with lower to go. For those of you that have COPY, I hope that something good will come of this advance. We need a move above one dollar without another sell-off. One requirement will be some sort of positive announcement before the usual sellers take over. We also need the price to advance without volume going beyond one million shares which could mean distribution.
prior entry: DEC 12
Closing Report: The Fed kept rates the same as expected and made its usual types of puzzling comments. The analysts went to work and presented theories of what is to be expected. While some still believe that rates will be dropped, the general opinion from CNBC is that rates will remain as is for some time to come. According to Fed commentary, the economy is indeed slowing but there is also a fear that inflationary pressure could develop. Nothing new about all this. While all the analysts are theorizing about the Fed, I believe that the Fed was actually saying that we are all screwed over the next two years. The Fed cannot lower rates with the Dollar going down under the pressure of dilution. The Fed should not but may have to raise rates in order to fight inflation despite doing damage to the economy. In the end, we are all dead. Economics can be frustrating. You will find no salvation coming from the Fed, because the Fed will do its best to increase the wealth of the banks. Just look at the credit card system which is operated by the banking system. Credit cards are geared legally to empower the card operators over the consumers. Interest rates can go higher with Fed support. It is for that reason, I am bullish on the precious metals for the longer term. I am also bearish on this Holiday Season (once known as Christmas). There will always be some retail stocks that will show good results. However, it is the first time that I see WalMart in some trouble as can easily be seen on its chart. Then we hear of trucking being in trouble as well. Then, my heater made in China broke down after 30 days of usage. However, I suppose that soon I will be buying a flat screen TV made in China. At least the flat screens made in China are operated by American based technology. If the market does hold into early January, I will not expect much upside unless more positive things begin to fall into place.
prior entry: DEC 10
Sunday Report: The Dollar just keeps dropping right through support levels. Yet, as it drops, I see no alarms and red lamps going off on the CNBC screen. It is as if the ongoing message is simply not to worry. In other words, the majority of analysts shall continue to predict that the present upward trend shall continue to prevail by dismissing the warnings as one would dismiss a conspiracy theory. Everyone also seems to believe that the Fed actually knows what it is doing. So why is the Dollar dropping? It is dropping and will drop even more, because the Fed cannot prevent it from dropping. There are too many foreign nations unloading the Dollar. Despite the power of the Fed, it cannot support the Dollar. The problem now becomes that foreign investors will also begin to sell U.S. stocks. Of course, all of this negative stuff will continue unless something positive happens. Only the Fed has enough power to make something happen.....but even if it does something, the result will most likely be no better.....because the Fed is now in between a rock and a hard place. If the Fed raises rates to save the Dollar's inflation, the path to recession will widen.
prior entry: DEC 6
Closing Report: If you acquired UCOI, it is off the floor and should be kept for a much greater advance. The market continues to gyrate back and forth as we wait to see if a correction begins. The S&P did form a double top with yesterday which is often bearish. The VIX will soon give some indication of direction off its wedge pattern. Overall, indications continue to show that institutional buying is getting weaker. It now depends on the way CNBC decides to slant the news over the rest of the week. The chart pattern in WMT continues to be bearish. The indicators of the major averages are now showing overbought once again.
prior entry: DEC 5
Midday Report: (12:00 ET) Nothing has changed concerning my market view. I did say that there would be volatility as the market tops. I see nothing positive about next year at the present time. I have already stated my reasons. The Fed continues to inflate the Dollar through M3 trying to avert a recession. If it decides to counter inflation, then the Fed will have no choice but to reduce the infusion of money into the system. Meanwhile, the Dollar is going lower. I suspect that gold, silver, etc. will go higher. Before any volcano erupts, there will always be tremors. So far, we have seen plenty of tremors. However, the major market averages continue to edge higher while many of the lower cap stocks do nothing. Only certain people are actually making money in this market. Unless something changes for the better, something more drastic will occur once the new crooked bunch take office from the old crooked bunch in January. Concerning my cheapie stock (UCOI), I have acquired a large position at the .0063 level and will ride with it as my major speculative play. At least, this company has its product right out in the open for shareholders to inspect any time they wish.
prior entry: DEC 1
Midday Report: (1:45 ET) The Dollar continues lower with yields going lower. The pounding continues although there will always be suckers willing to jump into each rally. The rallies will be used to allow dealers and other devious factions to unload inventory which will always be acquired on each decline. Now we are getting downgrades on WalMart. WMT is our major retailer, and yet no one seems to see the significance of lower earnings with this company. I have noticed that some of the brokerage firms have downgraded the target price while keeping a buy on WMT. Think about this! It gives me the impression that the establishment is trying to avoid major selling for the present by way of keeping buy signals on stocks that are in trouble. Meanwhile, the 10 year treasury yield has gone to new lows for the year, thereby making the yield curve even more bearish. Keep an eye on the VIX next week.
prior entry: NOV 30
Closing Report: I continue to find it amazing how investors and some fund managers can so easily be drawn into the market with a contrived rally. People were stumbling over one another just to buy IBM at the high of the day only to see it go much lower by the close. Meanwhile, the guests of CNBC continue to imply that the market is very bullish, will go higher and that the economy is strong with no chance of recession next year. Yet, the evidence showing that all is not okay continues to mount. Bernanke weasled his way out this week in the same style as Greenspan with one barrage after another of double talk. I stated prior to this that the dollar would go down no matter what the Fed does or says. Bernanke did not address the yield curve, the falling dollar, higher bond prices, increasing home foreclosures, and the fact that no matter what he does there will be the devil to pay. Gold and the other metals continue higher. No one seems to consider gold as an indicator. When were these analysts born? Yesterday. The VIX has already broken above major trendlines. However, we will wait to see if the VIX goes above the recent high just above 12.5 which will create another breakout. If the VIX goes above 12.5 and stays above, the market will be subject to very sudden, sharp moves influenced by investor fear. I remain bullish on gold and gold stocks and cold on techs. MSFT has rallied to a major resistance point at the 30 level based on the idea that Vista will be the salvation of mankind. MSFT is like a vegetarian dinosaur that feeds on the same menu. MSFT simply gets fat on money. The problem is that in business investors want to see progress in the field and not just an accumulation of money doing nothing except feeding all the parasites that live on the company. By the way, take notice of all the flat panels on the market, and take notice of all the PC's going for peanuts. Unless Vista is equiped with artificial intelligence, I certainly will not rush to replace XP.
prior entry: NOV 27
Closing Report: While the Dow and S&P have broken channel trend lines today, the Nasdaq remains in the channel because it has been advancing while the Dow staggered. The VIX has broken to the upside above its channel line in two sessions which indicates bearishness over the near term. How quickly things change!!!! Yet, these bearish indications have all been there in open sight for weeks now. However, the media did not dwell on the underlying problems as it is today. Most of the fund managers on CNBC today were saying that the drop in the dollar should be no problem because of the strong economy. Bernanke will have to be very careful in what he says on Tuesday. I suspect that he will not say anything that will rock the boat and will try to convey the feeling that things are not so bad. If the Fed trys to support the dollar, it will fail, because nations like those in Europe and in Asia will unload the dollar on any good advance which may be provided by the U.S. There was no sign of any dealer accumulation today which means that any rally from this level will fail in stocks. Channel support on the Nasdaq can now be found at the 2380 level.
Midday Report: (2:00 ET) Bernanke speaks on Tuesday at about 12.30 on the economy. He is in trouble, but we will find out how he is going to squeeze his way out.....at least for now. Will he chose to keep the dollar from falling or will he chose to sacrifice the economy? Either way, I maintain that the stock market is in trouble. The Fed has been pumping out money on M3 to keep the economy going strong but in so doing inflationary pressure has been building. Most of the anlaysts on CNBC have been looking for lower rates next year and a continued market advance. If the dollar falls continually over the coming months, the stock market will not go up. Now we watch the charts to see if near term support levels can hold. I have already stated that I am bullish on the metals. I noticed today that the major techs are once again getting hit hard and they may very well lose the gains of the past few weeks.
Saturday Report: Although Friday was a short day and a seemingly quiet day, something different began to happen. The market was negative for a change. However, the real difference was that the dollar was dropping and it was more so than in previous days. Other nations are dumping dollars. As a result of this, gold will get stronger and inflation may increase or tend to increase over time. The dropping of the dollar is just another kink being thrown into this supposedly bull market. I have been bearish on the general market and I will remain so unless some of these negative indications improve for the better. Right now, it does not look good, and I say this despite all the bullish talk by one fund manager after another on the CNBC screen. I am more bullish on gold now than I have ever been. I cannot even recall ever advocating gold as I am now. The only gold stock that I ever gave a buy on was Barrick Gold back several years when it was at the 15 level. Another negative indicator is that the Fed continues to pump money into the economy when the economy has already been hot for such a long period of time. If the Fed gets hit with inflation, it will sacrifice the economy to fight inflation. Is it not out of the ordinary that this year the rally came before December and January???? Concerning the flat panel TV: I predict that the LCD TV is going to drastically lower in price early next year as the Chinese flood the market with these products.
prior entry: NOV 23
Thursday Report: Wishing everyone a Happy Thanksgiving...... Friday will be a short day. We will find out on Monday if this continues to rise or not. Bullish sentiment contnues to rise to a record high. As I have stated in the past, I would not commit to this market until a meaningful correction has occurred. I would commit to gold issues at this time for the longer term. The low cap stocks are just not ready to move. Most of the viewers to this site are involved with the lower priced issues, and I must admit that these issues have been a complete failure. Things may still change for the better. However, I have already stated my concerns about the possibility of recession. Of course, even if a recession is coming, we should realize that the market forms a major top when least expected. In late 1999, just about every fund manager on CNBC was highly bullish and continued to predict greater earnings based on future revenue which is what we are seeing now. This bearish picture can still clear itself if the yield curve improves and a correction occurs that may alleviate the tension on the elastic of stock prices. Most likely the new congress will not rock the boat. Senator Kennedy wants to raise the minimum wage. We have to hope that not many more in the Senate are as insane as he is when he says ".....raise and raise and raise and.....". Will there ever be another Kennedy like J.F.K.? Note on COPY: I have always considered it to be unethical for a brokerage to issue a sell signal after having clients on a hold. When the sell is issued, the price gets hit before the clients can get out at the open. I value the people that come to this site as friends. I would rather be neutral on COPY since so many stockholders now tune in. This does not mean that I have turned negative. We now have about 63 registered users with over 900 pageviews per day. This means that we have many viewers that are not even registered but are involved with COPY. In other words, I have to watch what I say. The message board activity continues to rise. Consider also that some of the viewers may be of a hostile nature. With so many eyes on the message board and on my commentary, you can believe that whatever you say and I say will be seen by many people. I will reserve the right to make comment whether bullish or critical concerning price movement or management. I have already stated my concerns relating to the price range over the last five years and that someone is making money on that trading range while the long term holders are paying a time price on their invested capital. While I may often blame the market makers and other broker-dealers, I do realize that there may be other folks involved. It would not be proper for me to speculate further on that subject. However, I ask the viewers of the message board to make more effort to make quality comments about their own concerns about COPY and COPY management. Since COPY is so secretive about their operations, I suggest digging deeper using what you do know. Certainly, there must be opinion within Boeing that may reflect more light on the character of COPY. There must be other people out there that have more insight concerning the products that COPY has developed. I am talking about people other than those already known by shareholders. Concerning the possiblility of a short squeeze, I say the following. I see more potential on this angle than anything else. If there are massive short positions held by fund entities, I still maintain that something would have to occur in the physical character of COPY stock that would legally cause these postions to close. A small rise in price would not do it.
prior entry: NOV 21
Closing Report: Usually, markets tend to hold just before these holidays. If anything happens, it should be next week. The precious metals continue to be bullish with higher numbers to come. If these metals continue to rise into next year, the mining stocks might even make money and should be held. Even if there is a recession, the mining stocks will do well. Despite the bulllish atmosphere in the general market, indications are showing reasons for concern. Can the market go against the slide in the housing market? Will the reverse yield curve in the treasuries be of no consequence this time? Can the higher cap issues continue even higher without any reaction in the lower cap issues? Well, I suppose that we have some time for all of this to resolve even if these bearish indicators turn out true.
prior entry: NOV 17
Closing Report: The server has been on and off while changing an entry platform to the site, and it seems to be okay now. While the Dow has gone to new highs, the S&P is still below the high of the year 2000. The media, including CNBC, continues to give the impression that we are in a major bull market. If this was a major bull market, the thousands of secondaries which are stuck in the mud would be going higher. The averages are being driven by a few of the major stocks. Money is not charging into the market as some people are being led to believe. IBM should now be at 100 or over considering all that has occurred to the Dow and the record profits at IBM. Will the Dow and the S&P stocks simply continue to grind higher and higher? As Granville used to say, when good news about profits abounds the market, that is when you should worry the most. Note: I have decided to remain neutral concerning COPY on this site because I believe that COPY holders should begin to think for themselves. I also believe that shareholders should begin to search out as much truth as possible from any other sources and use the message board as a means of communication. I will simply refuse to ever issue a sell signal on COPY, because I do not ever want to hurt any of the COPY shareholders that patronize my site. I will reserve the right to issue ideas, theories and opinions concerning COPY without hurting anyone. Therefore, I will no longer advocate buying or selling unless it is justified with concrete information. I will always be glad to give opinions privately by email. COPY has been a good trading stock with plenty of money to be made for those trading in and out. Just look at a five year chart. Draw lines across the low range and the high range. Somebody has continually made money buying and selling the stock. The permanent shorts will all die of old age before COPY ever goes to zero.
prior entry: NOV 14
Morning Report: The chart formations on all of the major averages are showing bearish topping patterns. There are many double tops showing up on the averages and on many of the major stocks. The general market has stagnated over the past several days and caution is advised.
prior entry: NOV 9
Closing Report: Since the Democrats have also taken the Senate, we do have a problem. This market will not advance by leaps and bounds over the near term until some sort of policy is formed between Bush and the Congress. Keep in mind that the new people will not take over until January. Until that time, we will have only talk and speculation. The only positive thing about the elections is that some of the new Democrats are somewhat conservative, but they will be pressured to go more to the left.
prior entry: NOV 7
Midday Report: (2:15 ET) The market has rallied just before the elections which could produce a reversal after the elections. In reality, there will most likely be no difference as to which party takes the House. The Senate would present more of a problem situation if there is a change in the psychological sense. This present advance may not be as strong as it may seem. The secondaries are still not advancing in a strong fashion. Oscillator indicators remain overbought with the main indicators showing that as prices go higher the indicators are showing a decrease in strength. The VIX indicator remains within a narrow apex and it will either break one way or the other very soon. If the VIX breaks the trendline to the upside, the market will go down.
prior entry: NOV 3
Midday Report: (12:15 ET) The Nasdaq has already broken slightly below its support trendline while the Dow and S&P are still slightly above. Despite the good economic news the rally was doomed to failure. Why? Because market makers have already unloaded inventory on the prior rallies and they now want the market lower. IBM is starting to slip. However, throughout the day, the IBM specialist can still get people to jump in on each little rally. This allows him to unload any inventory acquired on declines and make money day by day. So far, there is no sign of any major accumulation as the price goes down on very low volume. We now watch for some support at S&P 1355.
prior entry: NOV 1
Closing Report: On Tuesday at the close, I did notice some very big blocks go across on some of the big techs. These could very well have been specialist short sales on an uptick. Then, there was more evidence of smaller amounts of selling on the early rally Wednesday morning. We should now watch the trendlines. The support on the lower channel trendline on the Dow is right about at 11900. On the S&P, it is at about 1355. On the Nasdaq, it is at 2320. A move below these marks would break the upside channels. The QQQQ did slightly break the channel line just below 42.
Morning Report: (10:00 ET) The Nasdaq and QQQQ remains the averages to now watch, because they are both once again at major resistance. A longer term chart on the QQQQ will show that the range from 42.75 to 43 is the range to watch. So far, the rising channel has been maintained. The only thing that we can be sure is that eventually that channel will be broken.
Weekend Report: On Friday, Auto Nation (AN) took a drop on a report that it was cutting back on orders. This is the biggest car dealer. While everyone seems to be focused on GM at the highs, Auto Nation is giving a clue of problems ahead. We now have a slowing in home sales coupled with a slowing in car sales. We have a yield curve inversion on interest rates where long term rates are going lower than the near term rates. We have one analyst after another coming on CNBC telling us that the market will go much higher next year. We have been through a big rally in the Dow and S&P with the smaller stocks dragging the field. Then we got this report from Goldman Sachs about less demand for circuit boards while the leadership at INTC and Dell are disavowing all knowledge of this. The media is trying to give the impression that gold and oil is no longer a factor. Are we supposed to have a feeling of being at peace because the commentators on CNBC are all bullish. We now hear that prices have to go higher because PE's are so low and projected earnings are set much higher for next year. I feel like I'm back in late 1999. What the heck! If that is the case, we might still squeeze another advance. After all, stocks always look the best when they top. If the Democrats win.....well, if they win.....then????? It becomes just one more loose cannon..... By the way, concerning my remarks on China. I have been much too mild in my approach. I would rather trust Judas than the bastards that run the Chinese government.
prior entry: OCT 27
Midday Report: (2:00 ET) How quickly things change! Once again certain investors seemed to show no fear of bearish indications with the weaker GDP figures. IBM was rallied to above 91.50 and Dell was rallied to above 23.50. It is amazing that people were tripping over each other buying Dell despite the technical problems on the chart and at the management level. IBM also remains under technical difficulties on the chart, but no one seems to see it as investors keep jumping in on any rally. All I see is broker/dealer dumping on these rallies with fairly low volume which means that just a few dumb fund managers are supporting the dealers' ability to unload inventory at rally highs. Meanwhile, the fund managers coming on CNBC continue to be bullish. Yesterday, the Nasdaq matched its yearly high at 2375-2380. This figure is being carried by the bigger stocks. The third level and second level stocks are not even close to matching the prior highs. In other words, the Nasdaq is not as strong as when it last hit these levels. The numbers representing the average are deceiving. Note: Once investors had feasted on higher prices in Dell, it was released by Goldman-Sachs that a mystery phone call to Asia had revealed that there was going to be lower demand for computer circuit boards. Will there be an SEC investigation concerning any unloading by brokers just prior to this release? Of course not. If you or me had pulled this off, it would have meant life in prison. Furtheremore, who the hell was up at one o'clock in the morning in Asia throwing out this information?
prior entry: OCT 26
Closing Report: The Nasdaq and the QQQQ have now hit their one year resistance levels. We should soon find out which way this goes.
Midday Report: (1:00 ET) As expected, the Fed was a nonevent and will be again next time. Expect no salvation from the Fed, because the Fed is there to help itself and not the investor. Meanwhile, the market is holding in a tight range which means that eventually it will either break down or break out in a big way. The VIX index is merely saying that investors are complacent. In other words, because there has been no correction as yet, people are feeling that the market has to go higher. I do know from experience that the market is capable of reversing emotions and outlooks real quick from one day to the next. Although the Dow is doing the best with a technical breakout, the S&P is just teasing at the upper end of the break while the Nasdaq is just now hitting resistance on a one year trendline. It is almost as if the market is waiting for the Nasdaq to catch up to its resistance point. The QQQQ is just not entering its resistance in the range of 42.75 to 43. To signal a correction we would have to go below the channel which you can easily see on the major averages. I have also noticed that the institutions are holding back at this point. I will be watching to see if IBM can break above 92. Most of the other techs have halted. The Dow is now being carried by stocks like XOM, GM, T, etc. Oil is refusing to go much lower and gold still looks good. Housing is in trouble as prices drop. The economic numbers continue to look good but we must remember that things will always look good before the fall. Let us also keep an eye on the yield curve to see if the longer term yields continue to go lower compared to the near term which is bearish.
prior entry: OCT 24
Midday Report: (1:00 ET) The analysts and fund managers have just about all been on the bullish side going forward and would expect only a minor correction. I still maintain extreme caution at this time. I know that the market has continually gone up over the past few weeks but you should notice that so many of the secondary stocks have done nothing. I am not bullish at this time considering all of the indicators. Stocks like IBM have reported record earnings, etc., but you should also note that this has happened before in prior quarters. As I have been saying, once the short covering is over, this market will fall or correct. The short covering is over and broker dealers have been unloading inventory over the past few days as the S&P dug into that 1370-1375 resistance range on the upper trendlline.
prior entry: OCT 23
Midday Report: (1:00 ET) Still many of the secondaries are not moving despite the advance in the averages. Monday is always a dangerous day and we will now see if this can hold as the S&P is now deep into the resistance range. The Dow has broken above, but we have seen the Dow falsely break above many times before. The Nasdaq is now a hair below resistance. The problem which is still in the air is what will happen once all of the shorts are covered out and this should happen soon.
prior entry: OCT 19
Midday Report: (3:30 ET) DELL is in trouble. Now that brokers have unloaded at resistance levels, the news comes out that HPQ has caught up to DELL in PC shipments. It was timed as if written on a script. There is a gap to the downside which is most always not good. As far as the general market, we will not know for sure if this is the start of the correction until some near term trendlines are broken. Whatever the case, this is not the time to go long.
prior entry: OCT 18
Midday Report: (2:00 ET) IBM gapped big as expected on big volume. MLynch actually downgraded IBM to neutral while other analysts raised expectations. IBM may not be a good buy today but brokers got the buyers. The Dow continued deep into resistance range 12000-12050. The Nasdaq never quite took off. We continue to be at dangerous levels. However, most analysts are continuing to believe that any decline here will be minor and temporary. Now that IBM has reported, we should be careful. We still have other firms to report that may keep the market in check at these levels a little longer.
prior entry: OCT 17
Closing Report: Now that IBM has finally reacted with good news, we will see if the market can break above resistance. The Nasdaq does have a little more room into the resistance range. This means that we could still see an upward spike, but we should be on alert. It will take a big down day to reverse this rally. Many analysts on CNBC are expecting a temporary decline or mild correction.
Weekend Report: As the markets (NYSE and Nasdaq), move to major resistance levels where a showdown will occur, we should keep in mind why this rally has carried this far. Then you can decide is whether or not you believe that it will break out or correct again. As I mentioned prior to this, NYSE members have been short covering, and the reason for this is that the Fed has supplied tons of liquidity into the system. We now have to judge as to what will happen once the short covering ends which will be soon. Can the market still go higher with that gone? Not many people even realize that this short covering is going on except for brokers and others who interact with the floor. There is a good chance that we will find out this week. The parameters are approximately Dow 12000, S&P 1370 and Nasdaq 2375 and QQQQ 43. The Nasdaq seems to have more upside room early in the week.
prior entry: OCT 12
Closing Report: The next two sessions should become interesting as the S&P moves into that 1365-1375 resistance trendline range while the Dow is now riding along the three year upper trendline. The Nasdaq will hit its recent prior high at 2375 very soon and the QQQQ is also approaching its recent high at the 43 level. Those are the critical parameters to watch for Friday and Monday. Upward spikes may be a negative for which to observe. We still need to hear from Intel and IBM before anything drastic may occur.
Midday Report: (12:30 ET) Take a look at the three year chart of the S&P (SPX). You will see a steady uptrend channel. If you draw the upper and lower trendlines, you should note that the upper line is not set at about 1365 with the lower at 1250. That is the official trading range. Can the S&P 500 go above the trendline? We are almost there. At that point, we will see a reversal back into the trading range if a correction is in the cards. Keep a watch on this situation. The more important tech stocks will report next week.
prior entry: OCT 10
Closing Report: The market has been in limbo. It goes down throughout the day but only by a very limited amound. This could mean that it wants to go up before any major correction. Even if it does go up, the hundreds of low cap stocks may actually go lower. The big caps will soon get their quarterly reports released. Let us see how stocks like IBM react. If the gossip is correct that NYSE members still have more short covering to do, then it makes sense that we will not see a major correction for a while. The problem is that we may simply waste more time just sitting here for a while.
prior entry: OCT 6
Closing Report: Because the weakness of the last two days has been mild, I would not be surprised to see another rally soon. Before we see a stronger decline, prices may have to get more overbought. It may be too soon to go short. However, since this top will be hard to forecast, it may be better if we just watch for now. Also, as I mentioned in my prior report, it may take a little longer for the shorts to cover. However, this should all take place over the near term.....within two to three weeks. XMSR is starting to look good for a short term trade with stochastics at oversold and at the bottom of the range.
prior entry: OCT 5
Midday Report: (12:00 ET) The prognosis has not changed. This market is dangerous. The rally in the NYSE stocks is mostly due to short covering in the area above 11700. It is for that reason that the situation is totally different in the Nasdaq stocks. The stronger upward move in Nasdaq on Wednesday was mostly due to less sophisticated investors jumping into a trend late in the game. The stocks under the secondaries are doing nothing. Stocks like DELL have been moved to the top of the recent trading range which is a further warning. There is no improvement in the problems facing DELL except that they are expanding operations in India. I will not consider buying another Dell product because I really do not wish to talk to another PC tech in Bombay. HPQ should be much higher than what it is. What is this country coming to???? The person guilty of causing the whole problem at HPQ is free and clear while those loyal to the company may go to prison. Screw this. I am turning totally negative on the American justice system. Do you want to be a CEO? I don't. I still think that Bernie Ebbers got a royal screw job by the government. A murderer would have gotten a better break. I am telling you that this country is going to the dogs and fast. Now the slant by the media is that power will transfer back to the Democrats. Oh, now that is really something to look forward to. The Bush-hating Democrats are now already screaming that they will raise taxes and give it to the poor. What a revelation of the coming salvation for our nation. I am really looking forward to seeing more money given to losers. We will go from a losing situation in Iraq to a losing situation here. I can see why some people become hobos. Meanwhile, the 30 year bond rate is under the near term rates which has historically meant trouble within 12 months. I have inserted a link above for your viewing of the bond yield rates. If you have Starbucks, keep it for sure, because people are going to need even more caffein next year... every day and all day long.
prior entry: OCT 3
Midday Report: (2:30 ET) On looking at the Dow chart today, you would think that IBM would be much higher along with INTC. Today, some analysts are saying that the market looks very bullish mostly because commodities are coming down. I certainly would not buy based on that because oil should still be considered very expensive even at $50. The secondaries and third tier stocks are actually going lower. Okay, so we have a big-cap rally. That is what it is and nothing else.
prior entry: OCT 2
Midday Report: (3:30 ET) As we finish the first trading day of October, my view of the market has not changed. The Dow has tried several times now to break out on the chart and has failed. The Nasdaq has displayed weakness throughout this process with the same again today. Yet, the broker-dealers succeeded once again today to get investors to jump in on higher prices on the tech stocks. It certainly proves the point that people can be coerced into buying anything on increased prices. Be careful. This market is still on dangerous ground.
prior entry: SEP 29
Closing Report: My internet server, Time-Warner, was on the blink most of the day. The big blocks that I saw yesterday at the close at the highs of the day on many of the techs were meaningful. These big blocks, when they occur at the highs and at the close, will usually mean that the broker-dealer is selling or shorting to a mutual fund. Of the big techs, only HPQ was up....figure the logic in that. All of the charts continue to show overbought. Now that the quarter is over, we should be able to better judge the direction early this coming week. Most of the analysts that I have observed are saying that a small correction may occur but that the upward strength should continue into October. At least, I can agree with them about a correction. I have also noted that many of the former bears have now become bullish. Furthermore, almost everyone is expected more record earnings from the big cap stocks. Most of the analysts on CNBC will also agree that the market should be higher into the middle of next year. I can only suggest that we continue to observe the yield curve reversal to see if it does become complete over the coming months which would be bearish. However, we must keep in mind that the market will go to extremes when forming a top. It is amazing how many people will continue to chase high prices when there is an upward trend in place. Some of that has occurred over the past few days.
prior entry: SEP 28
Morning Report: (10:30 ET) The Dow event this morning is both insignificant and deceiving. If you look at the S&P chart going back to January of 2000, you will be shocked. The S&P closing high was 1465.15. We are not even close to the actual market record high. Check it out. CNBC continues to deceive people into thinking that we are breaking to new highs right now.....and we are not. When considering the ratio of the S&P with the Dow, the Dow is in reality almost one thousand points lower than the present number. I told you many months ago that the folks who regulate the Dow average were trying to rev up the average by replacing all of the weak components with higher priced issues....which is what happened. Unfortunately, not many people really understand what has happened to the Dow average. The point is that there really is no breakout because the breakout is still far above current levels.....far above.
prior entry: SEP 27
Midday Report: (1:50 ET) So far, the Dow has come within 3 points of that record closing high of 11722.98. Almost everyone on CNBC has been positive on beating the record. The actual high in the Dow was 11750.28. Only ten of the Dow stocks are now higher than the January 2000 high. Of course, keep in mind that several stocks have been changed in the Dow. Keep in mind that the S&P is still under the record high by much more than the Dow. Things are just not proper for a clear breakthough at this time. I have already mentioned the problem with the Nasdaq in prior statements. I observed a few tech stocks and noticed that big blocks to the upside have eased while several big blocks were recorded on downticks. These downticks were certain parties shorting big blocks under the cover of the rally. Also, I noticed that the only big techs doing well today were Intel and Microsoft. This is not the right time to buy. I have been saying this for some time now. Yes, the Dow has been going up, but you should also notice that many of the techs have done nothing. Many of the secondaries have gone lower during this rally.
prior entry: SEP 26
Closing Report: Red Hat (RHAT) got hit on bad quarterly news in the afterhours. This goes to show you how investors can get deceived. When everything looks good, the roof caves in. It is for that reason that I cannot join the crowd in celebrating the good news in the economy and the overall good news coming from prior reports in the earnings. Whenever good news is so good that every analyst and his uncle is a believer, it becomes time to take cover. Right now, the commentators on CNBC are just bursting with good economic and quarterly expectations. Perhaps this week we will see the Dow match the high of January 2000 at just above 11022. Of course, we will not talk about the fact that the Nasdaq is still under the waves of this year's high. We will find out very soon now as people continue to jump into the NYSE stocks.
prior entry: SEP 25
Closing Report: The controversy goes on between the bulls and the bears. For the longer term, I will remain bullish, but for the near term (October), I remain concerned. Lately, the techs have revived, but I am concerned about the reason for the revival. Could brokerage dealers be trying to unload on this rally???? I would much rather buy on a sharp decline. Many of the charts look good because of the trend that shows going upward. Keep in mind that this week marks the end of the quarter.
Weekend Report: The next several weeks will be worthy of being watched for the sake of education. At this point, the market can still rally and attack the highs, but if it does, I fear that it will be to fool investors into jumping in. If the market is to decline in a serious manner, it will not occur in a clear manner at the start of such a move. Brokerage dealers will want people to hold onto postions well into the decline. Gold is actually showing up as very bullish. Meanwhile, the Fed has lost its hype on the market with its holding policy which will most likely continue. The Fed is now on hold, not really because of inflation, but because of the fear that the economy may be in trouble. The inflation story is just static. In the coming weeks, I will introduce you to the theory regarding treasury rates.....in other words, the inverted yield curve that has been developing. Some people say that this inversion is nothing to worry about while others say that it is an indication of recession next year. An inverted yield curve means that the short term interest rates are above the longer term rates. Normally, the 30 year rate is higher than the short term treasury bill. When I get a chance, I will begin adding information concerning this situation on this site. Unless the Nasdaq can reach the highs of several months ago, it is my opinion that this whole market will be in serious trouble along with the economy. I do have trouble believing that the record profits of this year can be surpassed next year. UCOI at the 3 cent level continues to be my "Las Vegas bet" pick for now with all else on hold.
Closing Report: I would like to express my opinion concerning gold. I am bullish on this issue. About six years, my pick was Barrick Gold when it was at the 15-17 level. I am presently looking into a very low-priced issue at the 3 cent level. The company is Unico, Inc. (UCOI). It has recently sunk from the 20 cent level and was earlier this year trading much higher. I am calling this one strictly a Las Vegas bet, but with the odds of playing blackjack or poker. I am buying at the 3 cent level strictly for some excitement in my life.
Midday Report: (12:45 ET) I still cannot share the enthisiasm of CNBC in giving praise to the tech sector on this rally. I look at the tech stocks and I see nothing impressive. Sure....many have rallied in some form or fashion, but their upward moves are not impressive. The RUT is now merely hitting a lower level resistance area along with the Nasdaq comp. While IBM was up yesterday in a move that got many investors to jump in, it has now lost all of that move. I will continue to remain short on DELL. I cannot figure what kind of mentality would even consider buying Dell at this time unless there is knowledge of some revelation. Everyone that bought HPQ on the good earnings hype is most likely in a state of regret. The tricks that are being pulled on investors just plain stinks. CNBC has once again hyped the show of going to new record highs in the Dow and S&P. However, no one on CNBC has made the point that the Nasdaq is way under water. We are in a market where the Nasdaq has actually become more important than the NYSE. You may disagree with that statement, but I will repeat it. In my opinion, the Nasdaq has become more important and more critical than the NYSE.
prior entry: SEP 20
Closing Report: The Dow and S&P are now at the one year highs with the Nasdaq still lagging far from its recent high. Once the NYSE goes over the prior high, it can always go a little further as it once did. Caution is advised, because at this point, anything can happen and happen quickly. I remain bearish, because the market is clearly overbought on our indicators and the Nasdaq is not even close to its prior high. Still investors and the mutual funds continue to jump into the rally because that is the nature of the trend-followers. At this point, many of the techs are being pumped up finally. Only Intel and Dell are showing up badly. Dell may very well report lower guidance before very long. IBM is being pumped up to its major resistance at the 84-85 range. The news is mostly all good on the interest rate front and from corporate earnings. I remain watching with no anxiety to buy. Even if it goes higher, it will be no great loss to merely watch and wait.
prior entry: SEP 18
Midday Report: (3:00 ET) I still maintain that this is not the right time to buy, at least until there is better indication that the market can break out. The NYSE did knock on the door but got turned back. I noticed that some of the techs did have mini-spikes as people jumped in. People even jumped into DELL which proves that half of the people are usually wrong most of the time. I believe that the wrong half were buying this morning. However, the Fed meeting this week will most likely determine a resolution to this whole affair. After the results of that meeting, we should know how this market will trend for the next few weeks. The stochastics reading on the major averages continues to show overbought with the Nasdaq up against resistance at the point of the prior breakdown five months ago.
Weekend Report: The Dow and S&P are most likely going to either hit or go just above the all-time highs early this week. These averages will at least match the recent highs of four months ago. The Nasdaq remains well below the highs of just four months ago. Can you see the problem? The scenarios are too numerous to even guess at probabilities as to what will happen this week. We can be sure that something will be resolved this week whether bullish or bearish. I feel that it would be better for the market if we got a correction from these heavy resistance levels to a point where the Nasdaq could catch up more quickly to those four month highs. Several weeks would be a normal time span. If the market spikes upward early this week, we could very well see a near term top. If the market remains bland on Monday, then we could gear up for an upside break later in the week with strength on the Nasdaq. I still remain defensive considering that the indicators are now getting overbought and the secondary tech stocks are showing no sign of life. The VIX chart remains at the apex of a wedge formation. If it breaks above the wedge, the S&P should drop. If it drops below the wedge, we could see a much further advance in the market. I will keep a watch on this situation. A more bullish scenario would be that the NYSE will advance and not correct until the Nasdaq matches its four month high. Now you must consider the type of stock that you either have or want to have. My mind is on XMSR, but I may wait for a further correction. On the short side, my mind is on certain tech stocks that remain in limbo or have not yet broken above resistance trendlines.
prior entry: SEP 15
Closing Report: If on a small corrective decline, things should change by way of technical indicators, then I would consider going long. For now, I merely wait to see if something more positive occurs. There are just too many tech stocks that have not joined the advance. I do remain bullish on XMSR and firmly believe that it has more upside to go. If you have it, hold it, or perhaps buy on any further decline since it is getting more and more upgrades and gossip of a merger with Sirius. The gossip alone is worth something. XM should be much higher into the 15 to 17 range over the coming weeks.
Midday Report: (1:00 ET) With the hype on CNBC this morning, people were jumping into the market left and right buying at the highs of the day. Will people ever learn???? No, they will not. Market makers loved it all as they unloaded again at the highs and near the all-time high on the Dow. As the market hit the highs, I noticed that the major techs were not performing which was the main clue that we still have problems. This is not the right time to buy.
prior entry: SEP 13
Midday Report: (1:00 ET) Despite the market being up, the big techs (IBM, HPQ, MSFT, INTC, CSCO, QCOM, etc.) are down at this time. It certainly is a weird situation. I will not go long and remain watching. There is not much to lose by just watching at this time.
prior entry: SEP 12
Closing Report: Nothing has changed in my thinking. You can easily notice that the stochastics line is still heading up from those oversold conditions. It is when that line reaches the overbought level that we will find out just how solid this rally really is. On CNBC, it is now said that the Dow is at 4 month highs and that the Nasdaq is at 3 month highs. What CNBC does not mention is that the Nasdaq is way below the 4 month high. While the S&P stocks are doing well in this rally, many of the Nasdaq stocks are stalling over the past few days.
prior entry: SEP 11
Midday Report: (3:30 ET) On this 9-11 day, the specialist and brokerage dealers are carrying out their own destruction. The decline early this morning served the purpose of weakening and erasing all support levels just under the market. The ensuing rally served the purpose of allowing dealers to unload inventory and short selling. There is no support left just under the market. However, we can expect volatility both up and down for some time to come. We now wait for the trend of that volatility whether up or down.
Weekend Report: Happy days were here again on Friday, but do not be deceived by the celebration on CNBC. I had been expecting a rally by early this coming week as the S&P approached the 1290 level. It would have been more positive if the rally had waited until Monday or Tuesday. However, we will find out soon how this will be resolved. If this rally is good, it will last throughout the week. While the Dow chart does look good for a rally, the S&P is not as good, and the Nasdaq looks terrible. The only positive factor is that the stochastics line is coming off oversold levels, but this one factor alone is no guarantee. The news media is now focusing on consumer spending which is getting weaker. This slowing of the economy could be blamed on energy prices and it is also probable that the end of the housing boom is having an effect. This is not the right time to buy. The Nasdaq is simply not responding on par with the NYSE. The big techs are also not responding well.
prior entry: SEP 8
Midday Report: (12:10 ET) This rally should not be bought although stochastics is showing the situation to be oversold. This advance will fail over the near term whether it be today or next week. You should note that this rally was contrived with the positive overnight futures. As you should realize by now, the overnight futures are easily manipulated by brokerage dealers. A real reversal occurs when the market turns around in real time trading from the lows of the day. I still believe that overnight futures trading should be banned, or at least, it should be investigated by the Justice Department. Oh, I almost forgot that......the Justice Department will only investigate you or me if we do something out of the ordinary. Brokerage dealers and their associates are sponsored by the government with licenses to legally steal.
prior entry: SEP 7
Closing Report: There is some support on the S&P at about 1290 and so we could see a rally or holding pattern by Monday. A close below 1290 would be very bearish. Since the stochastics line is now near the bottom oversold level, some sort of rally could develop into next week. However, I would theorize that eventually such an advance would fail with further downside.
Midday Report: (2:30 ET) I find it amazing that so many people jump into these rallies throughout the day after the charts have broken to the downside. The VIX has broken to the upside above its major trendline which is short term bearish. Both the Dow and S&P have now broken below the rising wedge formation. Note: I also find it amazing that more people tune into the site when the market is high but ease off when it is dropping. If you are smart, you will tune in as the market drops, because that is when you will learn the most about the crooked methods used by brokerage dealers and get in tune with the opportunity to buy near the lows.
prior entry: SEP 6
Closing Report: Although the rising wedge formation on the S&P remains unbroken, a close below 1300 would signal a breakdown. We now wait for this to be resolved by Friday. As you can see, the major techs got hit hard today without much support directly below. This is definitely not the time to be buying. Despite all of the warning signs, I saw investors jumping into the market today thinking that it would bounce back as in prior days. If people would only look at the six month chart of the Nasdaq, I think that they would realize that CNBC has missed the true situation in the market. It is telling that half of the U.S. market has not seen the glory expressed by the advance in the Dow. If any rally should now occur, it will be for the purpose of allowing market makers to unload inventory that was picked up on the decline.
Midday Report: (3:00 ET) If the market cannot advance in the last hour, it will be a bearish sign for the coming days. Also, you should keep an eye on the rising wedge formation on the Dow, because a break below that line will be a bearish signal. So far, I have seen no sign of accumulation today.
prior entry: SEP 5
Closing Report: If not for the oil stocks in the Dow, the Dow would have been negative throughout most of the day and would have ended in the red. Chevron actually made the market look stronger. IBM and the other techs were actually weaker and taken lower. Beware of any upward spike in the S&P if it should occur. The rising wedge formation can be seen in both the Dow and S&P charts.
Midday Report: (3:00 ET) Brokerage dealers seem to be unloading inventory on each rally throughout the day. The techs are getting weaker.
Midday Report: (1:00 ET) I will maintain a warning on this market for the near term. Although a little further upward move could still occur, the Dow chart is showing a rising wedge formation which is bearish. No one can possibly know when the actual break may occur, but we should be prepared. This has been a big cap advance. The Nasdaq is still way under this year's high and continues in a bear market pattern. The Dow and S&P are now on a right shoulder level on the six month chart. Be careful.
prior entry: SEP 1
Midday Report: (11:30 ET) This is not the right time to be buying despite the enthusiasm being displayed by CNBC. The Dow and S&P are now up against some strong resistance. We will most likely get a resolution next week whether this goes up or down. A drop in the S&P to 1280 would be totally realistic as can be seen on the chart (support level). Also, you should observe the Nasdaq chart. What do you see there? I see a chart that in no way resembles the Dow. The Nasdaq and the QQQQ are still in a bear market mode and are both up against resistance. There is one more important notation. Notice the volume on all the charts. Volume was high when the advance began and now it has continually been dropping lower. That drop in volume certainly does indicate that buying power has been dropping. The market has gone up based on short covering and less sellers with the advance being fueled by the few buyers in the institutional group. If volume increases based on more sellers taking profits, this market is in danger of a sharp drop.