Morning Report: (11:30 ET) We finally got the rally off those oversold indicators that we
have been mentioning. If you look at the MACD line on any chart, you will see that the MACD line was rock bottom on
the major aveages. So this morning it was the Institute of Supply Management that reported an increase in its index.
Something had to be used to get this going. The headlines went crazy with news of an improving economy. It was
like an alcoholic finding a cache of Dom Pedro whiskey. If all goes well, we will test the upper end of the range.
In reality and in my opinion, nothing has really changed in the real world. Keep in mind, that the media has the ability
to control by those who exert the control.
AUG 27
Closing Report: The media turned Bernanke's words into a positive by highlighting only the positives.
This is how the media helps insiders to control the market. In my opinion, there was nothing positive about Bernanke
since he did not specify what action he was going to take. He has become merely a pawn who is now trying to make things
look good. Meanwhile, housing continues on a downward path which will force him to command the major banks to
do some radical things to save the loans now on the books. The Bank of America is now advertising a plan to forgive
the principal balance that is over the equity in the home. In other words, if you have a mortgage for $250,000 and the
equity value of the home is now $200,000, the BofA will actually forgive $50,000 off the loan. This would have been
unheard of a few years ago. This should give you an idea of how bad things really are. Note: Read the
AP release off my title of (U.S. Spending Money on Mosques Worldwide) on my front page. The enemy is here, and the enemy
is ourselves. Your tax money is helping to restore mosques.
Midday Report: (1:45 ET) They drained the blood out of people right into this morning.
I saw blocks of a few thousand shares in IBM go at the lows. These investors actually fell for the bad news coming from
Bernanke only to realize later that the market was ready to advance even on bad news. Let's face it! The economy
really is in a crash mode, and those in control in Washington have no inclination to try anything that makes sense.
We simply wait for a change in power.....if even that occurs. At least for now, the indicators are showing a short term
advance. Note for COPY holders: Remember that we always seem to make that trip to the one dollar level once per
year.
prior enry: AUG 26
Midday Report: (12:45 ET) We had a positive close yesterday. Although the market faltered
again after the open today, all indicators are showing a high probability of some sort of advance soon. It seems like
brokerage operators are trying to drain every ounce of blood out of people before they advance the market. I see IBM
being kept down as stops are hit and investors are being taken out and the shorting continues by people that are being influenced
by the news media. Meanwhile, the major banks are holding well despite the down spats that are now occurring in the
general market throughout the day.
prior entry: AUG 25
Midday Report: (1:30 ET) As bad as things may seem, the market could actually bottom at
these levels......at least, according to oversold indicators. Over the past several years this level has been the pivot
point. Back in 2004, the market turned upward. If you look it up on the chart, you should notice that the chart
pattern is very similar to the present pattern. We are also talking about an election year. We should see a rally
from this level. Otherwise, it would mean curtains on the chart. The market is heavily shorted, and the news is
nothing but bad which makes for a bottom. Keep in mind that market operators are not one bit shocked at the bad news.
Market insiders want people to sell on bad news. We wait.
prior entry: AUG 24
Closing Report: The market did not end well again. Last chance might be Tuesday before everything
breaks down. I believe that Nancy Pelosi will eat every word that she said about President Bush before this is
over.
Midday Report: (12:00 ET) It is amazing that so many corporations are reporting good earnings
per share on lower sales revenue. This shows that business management in this nation does a better job than any government
employer or politician. A business can actually make money by cutting back on employment and cutting expenses.
While employment may look bad, these businesses have adapted by cutting deadwood. Too bad the government cannot seem
to understand the same. The government has actually increased the deadwood in trying to improve the economy. Meanwhile,
we wait to see if the market can hold here, because we are getting very close to recent lows. The market went down today
because of home sales which should come as no surprise. I am sure that brokerage houses already knew ahead of time.
Bank stock indicators are showing support at this time. Banking must hold here along with tech stocks.
Morning Report: (10:30 ET) We could be seeing a bottom on this early morning sell-off.
The S&P chart is showing a hit on the right shoulder theory at the 1050 level. The market is way oversold and some
sort of rally should begin. We must see the nature of a rally at this point in order to determine if the market
is so weak that it could crash into September or October. The closing today will be important since we will have to
see something above this morning's lows. We wait.
pror entry: AUG 19
Midday Report: (11:45 ET) It is obvious once again that options expiration is affecting
the market averages this week. It is for this reason that I firmlly believe that having an options expiration every
month is nothing but a scam to give advantage to the brokerage houses and other major operators. It is all part of a
manipulation on prices that goes overlooked by the media because not many peole know how options operate. For example,
IBM really should be well above the 130 level, but instead, it is being kept right around the 130 strike level this week.
IBM began to act weird starting on Monday and then again on Tuesday, because you could tell that stock was being unloaded
with the price going down even as a market rally was in progress. These option expiration dates on the third
Friday of each month will cause many average investors to do the wrong thing based on what is being seen. It may even
cause investors to sell on a decline, because the decline is being created by the unwinding of stock as the expiration date
approaches. Each of the major brokerage houses will know how stock is tied to an option. People that have tied
their stock to options will have to either buy or sell their stock depending on their strategy, or those that have options
in the money will either buy or sell the stock in question. Now....how about the future of the market???
The next few weeks right into October are dangerous. The news is not only bad, but it is also lacking in hope.
Nothing is being done. It is like a dead silence has come over those that are now in power in Washington.
No one wants to do anything, because no one seems to know what to do. It stems from the president on down. Those
in power are wasting their time on nonsense. The Speaker wants to investigate funding that is going against the mosque.
Obama wants to fight Americans that are against illegal immigration. The Republicans are just waiting for the Democrats
to make even more mistakes. This is a horrible situation.
prior entry: AUG 13
Midday Report: (3:00 ET) The market is simply being held in a tight range today as if by
design. Even stocks like IBM are not acting normal. With options expiration next week, it is possible that some
unwinding is taking place here. The S&P and Nasdaq seem to be forming a head and shoulders formation. The
S&P support for that formation is 1050 and for the Nasdaq it is 2150. The market is short term oversold.
pior entry: AUG 12
Midday Report: (12:00 ET) Could the short term advance be over? We have two big down
days in a row. We watch the S&P at 1180. A close below 1180 would be a warning signal. A second close
below that level would signify a sell or stay out. I am looking to see if today's downside gap can be closed today.
Otherwise, that would be a big warning signal. We need a strong close today for this to be any good. The jobs
situation continues negative which is to be expected considering that nothing is being done on the tax front. We have
a situation where the Democrats continue to think wrong, and the Republicans want that to continue into the elections.
prior entry: AUG 11
Midday Report: (2:00 ET) There is nothing new with these down days. It is very short
term within an uptrend. It only causes even more people to short based on news which we already know ahead of time.
We already know that all economic reports will be either negative or bland. The Congress does nothing and Obama has
a staff of advisors that has no clue of what is going on. I think investors already realize that, because otherwise,
the Dow would be much further down. We must simply muddle through this mess.
prior entry: AUG 10
Midday Report: (3:00 ET) The prognosis has not changed. They will take the market
down on some emotional news to get people to short even more. The futures were already negative during the night which
meant that brokerage insiders already knew what the economic report was going to be before it was even released. IBM
remains positive with the next stop at the yearly high. It does seem as if IBM will go to a record high soon.
These early morning declines help to keep the shorts from covering.
prior entry: AUG 6
Midday Report: (3:00 ET) The decline today based on the jobs report was geared to get people
to short again. These negative news reports are now old news. We should all know by now that Obama does not have
any idea of improving employment except to throw more money at the problem. The liberals still want to increase taxation.
If the current upward channel on the S&P can be kept, the chart will remain bullish. In other words, we want to
see a flat line across recent tops with an upward channel on the lows.
prior entry: AUG 5
Midday Report: (12:00 ET) The market is behaving in an unusual manner, but there is always
a reason which may not be obvious. The economic reports continue to be negative. The employment numbers are not
good. However, at this point, I think that almost everyone with a brain expects that. It is obvious that the current
presidential administration is far in the woods without a map and refuses to believe that the North Star has a meaning.
However, there continues to be investors that continue to short the market. As a result, the market will advance one
day and then drop. However, the market continues to trend upward (sneaking up process). There are no signs of
distribution by brokerage houses as yet.
prior entry: AUG 4
Midday Report: (3:30 ET) As you can see, the market wants to go higher, and the market wants
to squeeze the shorts. Tuesday's weakness was only meant to get even more people to short.
prior entry: AUG 2
Midday Report: (1:45 ET) I refer back to my prior entry. The charts are showing bullish
for the near term. There is one other major factor. The market is heavily shorted. I have mentioned this
several sessions ago. Even late last week as the S&P dipped just below 1100, investors were shorting again.
For example, IBM was showing greater inflows of capital even as the price was going lower. People were shorting which
was taking the price down, but at the same time others were accumulating huge amounts on upticks.
prior entry: JUL 31
Saturday Report: The NYA chart (NewYork Composite) looks bullish. This index is more important
than the Dow and S&P. The RSI and MACD are rising and the Stoch line is showing a mild correction of the last two
sessions. A move above 7100 would indicate an advance to the 7700 level. A close below 6800 would be bearish.
We watch.
prior entry: JUL 30
Closing Report: Nothing has changed. The market remains bullish for the near term.
The S&P has closed above the 1100 level on each day that the Dow has corrected. Have you noticed how negative each
decline has felt like on each of the last two sessions. More people shorted thinking that the advance was over.
Don't you think that it is all part of a plan by exchange operators to keep investors bearish???? Haven't we seen
this type of affair many times before???
prior entry: JUL 27
Midday Report: (2:00 ET) People are still betting that IBM will not go much higher.
I have to believe otherwise.....for the near term. The market in general still looks bullish for the near term.
If the Dollar continues to drop, it will be bullish for U.S. corporations selling overseas. The VIX is declining which
is also bullish. The S&P is holding well over the 1100 level. The economy will improve as it has always improved
despite the stupidity of Congress. The economy will always come back because of the power of capitalism and that is
what makes America great. The socialism of Greece and other European nations simply does not work as well. However,
the Marxists of those other nations simply do not want to face reality. Just make sure that we do not try to copy
them as Obama would have us do.
prior entry: JUL 25
Sunday Report: The S&P closed above 1100 and the Dow edged above the recent July high along
with the Nasdaq indicating a short term breakout. All of this is on fairly light volume which is actually good.
It means that sentiment is bearish and investors are holding onto short positions. Corporate reports continue to be
good. Remember what I said about earnings per share and revenue. IBM reported high end per share earnings but
was light on expected revenue. As a result, investors took that to be negative and shorted on the decline. I believe
that per share earnings is a much more valid figure than revenue at this point. I always seem to go against the grain
of the media mentality. Revenue is down a little because of the so-called recession, but the corporate giants are making
profits. Profit is a greater priority than revenue on the bottom line. These idiots on CNBC were trying to tell
you otherwise. The downside gaps that occurred recently in the major averages and in IBM have been filled to the upside.
The media has also been throwing a negative slant on the major banks. Meanwhile, the short position in Citibank continues
to grow. Well, let us see if the averages can form an upward channel this week. It would be bullish if Congress
extended the Bush tax cuts. The cuts go until the end of the year, but we have the November elections in the mix.
Some of the Democrats want to make it look good for the election by extending the cuts. The scenario is quite clear.
Democrats love higher taxes, but they fear the November elections. After the elections, we may have a lame duck Congress.
The upcoming elections will be the most important off-year election in decades.
prior entry: JUL 23
Midday Report: (12:00 ET) The market wants to go higher short term. I checked the
evaluations of some important call to put options.....for example, the IBM options. I found that the puts were going
for a higher premium. This is unusual. It means that investors are betting that IBM will go down now. It
also means that people in general are thinking short. This means that the market will most likely fool these people.
I was thinking on the short side myself just a few weeks ago, but I also realized that emotions must not run your decisions
in the market. We will continue to watch to see if the S&P can close above 1100.
prior entry: JUL 22
Midday Report: (12:30 ET) A close above 1100 on the S&P would confirm a further advance.
As you can see, the rally continues despite all the fake-outs from one day to the next. This is not an easy market
to analyze because of all the gyrations that are occurring.
prior entry: JUL 21
Midday Report: (12:00 ET) On Tuesday, IBM gapped down. Ordinarily, this would be a
negative. However, It gapped down on very heavy volume at the lows of the day. Then it advanced slowly throughout
the day leaving much of the gap in place. This was actually a bullish sign since on a candlestick chart it actually
shows up as a white candle instead of black. For the price to hold on very heavy volume at the start of the day meant
that someone big was buying as investors sold at the lows. Although I remain cautious for August, I am here to look
at all signals that may appear and try to be impartial. I must admit that things actually look bullish for the short
term.
prior entry: JUL 20
Closing Report: The market is back into a short term rally mode. The volume increased this
morning as investors jumped out the window. It was a scam. For now certain indicators are saying that some sort
of advance is in order. We will check again as the stochastics indicaor rises from oversold.
prior entry: JUL 17
Saturday Report: I am reconsidering my position on the market for the near term. I have
taken a closer look at all that occurred on Friday. That decline may have been a fake. I noticed that IBM declined
to a point that I had expected....the 128 level. Despite the heavy decline in the Dow, IBM held rather well with some
big blocks at the close. It is entirely possible that brokerage houses are planning an advance on IBM before ever taking
it down. Let us not be too quick to go short. There may be too many people going short at this time. If the market
is down first thing Monday, it may be a bullish sign. There is some support on the S&P at about 1045-1050.
We wait.
prior entry: JUL 16
Morning Report: (10:45 ET) This is options expiration day and so some weird things are to
be expected. The banks had disappointing reports today. As I have been saying, the economy is not improving.
IBM will report next. That report will be critical in the timing of this whole affair. There is a chance that
IBM may be held at these levels until the report is released. IBM is in danger of a deep decline unless the earnings
are blowout. Monday and Tuesday will be critical. I would rather be short than long. On the one year
chart, I keep looking at that gap on IBM down there at the 112-114 level that might yet get filled.
prior entry: JUL 14
Midday Report: (12:00 ET) There are short term problems showing up in the indicators.
This is not the right time to be buying as I see so many others doing including fund managers. Why are fund managers
buying IBM when they could have bought much cheaper days ago? Well, we have seen this many times before, and that is
why broker/dealers make money. Watch the VIX to see if it begins to move up from here. The S&P is once again
at resistance. Although INTC reported good news, it is not up enough to be at par with the news. Someone is selling
into the news. We wait and we watch.
prior entry: JUL 13
Midday Report: (12:30 ET) Rather than decline and rally into the quarterlies, the market
decided to simply continue up right into the quarterlies of INTC and other techs. However, this continues to be a short
term rally. There is resistance at S&P 1100 and the Dow and Nasdaq are near channel resistance lines. We will
watch Intel for now and IBM early next week. There is evdience of some heavy selling on strength on the up and down
tick indicators. We wait and watch.
prior entry: JUL 9
Closing Report: The rally has been good. However, there are now signals of being overbought
including stochastics. IBM has hit and formed a double top at the right shoulder level of 128. This is bearish.
The Nasdaq chart is showing a definite down channel. The Dow could be very close to forming a head and shoulders pattern.
We have a conflict of elements here. Signals are showing bearish and yet the quarterly reports should be good.
The problem is whether or not the quarterlies will signal a sell when released. Some sort of decline is
to be expected over the near term. I am concerned over the IBM chart since I saw evidence of dealer shorting into the
close. We will find out by Monday or Tuesday. I am seeing too many quirks.
prior entry: JUL 8
Morning Report: (11:30 ET) The rally has occurred as expected and IBM has gone to the 128
level as expected. Although the market may still have some upside from here, I certainly will not play bullish at this
time. I remain bearish and I remain with bearish sentiments going into August unless a miracle should occur by way of
change of economic policy. Considering that there seems to be an agenda to destroy our capitalist system, I would not
expect a miracle at this time. We wait with caution.
prior entry: JUL 7
Midday Report: (12:00 ET) As you can see, the rally is on. I fully expected IBM to
rally to at least 128 or more. IBM at 128 will represent a possible right shoulder of a head and shoulders. If
it breaks above, then they will take it to the prior high. Next week will be reporting time. Once the quarterlies
are released, I would not be bullish no matter what the media may say or imply. The institutional index is showing that
the funds are jumping into this rally. Note: I am concerned that some big bank insiders are selling. Is
it possible that they are expecting some trouble just ahead involving the government???
prior entry: JUL 6
Closing Report: We are looking at a short term rally that could linger for a while. All
indicators remain bearish. The market is oversold, and I believe that broker-dealers will want to unload stock inventory
on a small advance. Today, I began seeing media releases that were bullish....saying that many of the big cap stocks
were actually cheap considering PE ratios. As a result, stocks like IBM began to rise. However, when things turn
bearish, I have seen good stocks go down. Keep track of IBM. The right shoulder of the pattern is at 128.
Next week will be reporting time. I do not have faith in being bullish once earnings are reported. Meanwhile,
what are my thoughts on politics? Steele was right. It is Obama's war, and it cannot be won. Our effort
should be to empower the Afghan army to fight. The enemy will continue to cross the border from Iran and Pakistan forever,
and thus there can be no winning. Without the rules of engagement, the Afghan army will do better than us. We
should merely advise their army. How about Arizona??? Obama will now spend tax money to fight our own security.
This insanity simply does not end. August and September could be ugly.
prior entry: JUL 3
Saturday Report: Although I am overall bearish on the market, things simply do not just go one
way. If they did, it would be easy to make money. I was surprised to see so many negative articles posted on the
internet media. There are too many bearish comments out there. We could see some sort of short term advance going
into the quarterly reports. The NYA is now holding at support just above 6400. The NYA chart on my prior commentary
will give you a reference point.
prior entry: JUL 1
Midday Report: (3:00 ET) If the NYA can close above 6400, we could see a small bounce which
would be geared to allow brokers to unload stock inventory and short.
Midday Report: (12:00 ET) Before this morning there was still one more indicator that was
holding a support level....the NYA. That is now gone. The Dow has also broken down completely. I am presenting
the NYA chart from one of my sources showing the support trendline which has just broken to the downside below 6400.
Can there still be a bounce? If there is a bounce....it most likely should be sold or shorted. At this point,
nothing should be bought unless a positive miracle occurs.
