It’s important we think of Dow projections to understand the condition of the market.
Here’s how I project the Dow over the next 7 to 10 day period:
Dow Projections:
9800-Strongest Resistance, the market seems to bounce from here
9950-10050-The struggle point
10,118-10,250-Strong Support lines.
Twice last week we hit theoretical Dow tops at 10,250, and 10,200 last Friday
10,416-Resistance-possible highest top
10,550-Resistance
10,676-Strong Resistance
Our basic rules of thumb on Dow projections: When the market drops it typically moves to a total of 584 points down, in periods of time. Any move up that holds over 100 points by day end typically ends a downside, and begins an upside to the same 584 area move up.
10,746-10,787-Fibonnaci Resistance and Retracement level
I use an exponential factor in H/L/O/C (High, Low, Open, Close and when studying or playing stocks or options focus on these factors first. I like the theoretical Dow, which shows the “true” tops and bottoms.
Want to understand our use of the theoretical Dow?
Study:
http://www.investopedia.com/terms/t/theoreticaldowjonesindex.asp
*Warren Buffet likes it, and I am a perm bull on energy of all types, I see much good in their $20 billion restructuring, and $10 billion to retire debt and buy back their own stock.
This is a blue chipper, with a dividend. Add it to our underperforming oil and energy core portfolio right now. We own XOM, and continue to buy and Chevron (CVX)
Conoco Phillips is an integrated oil major player. And a great symbol: COP
Buy it following the charts. Always buy up. We’d buy this at $55.50 and use a stop loss of $49.00 unless holding for the long term. If planning to hold for five years or more, just buy it.
The growing debate on whether GLD or SLV as an ETF is even real money is true.
Each of these funds “holds” actual bullion but issues their returns in Paper, or ETF stock, which to the true cautionary investor becomes suspicious as we realize there is no real “paper value”
ZKBGF
http://moneycentral.msn.com/companyreport?Symbol=ZKBGF
http://en.wikipedia.org/wiki/Gold_exchange-traded_fund
http://www.marketoracle.co.uk/Article9030.html
These three links will show you this Swiss fund, also available as a Silver ETF.
What the true Gold and Silver strategist is looking for is a fund that redeems in actual bullion.
We’re beginning research here.
In the meantime we find the Canadian Exchange Fund (CEF) remains an attractive and conservative way to hold gold and silver bullion.
Last week Pan American Silver (PAAS) hit our buy signal at 24.70 and we took entry in both long-term core positions, and as a call. Showing just trend lines, watch to see if 24.70 holds and begins upside. We’ll keep a tight eye on this for stop loss, or for a breakout stock.
I know you’ve been worried. Pages of Blue Chip without Floyd’s usual inflammatory and provocative liberalism. It’s because I’m tired. 23% of Americans believe Obama is a Muslim.
This is not just our stupidity, but pure Roveian (Karl Rove Theory of intimidation by false facts) politics, and our nation now blames Obama for what has been 40 years in the making.
And here I see how religious wars begin over stupidity. Religion breeds hate, it so appears.
Hmm, what I’ve always believed. Conservative with no vision are just like jihadists with a singular vision
http://www.huffingtonpost.com/markos-moulitsas-z/post_743_b_693281.html
Control your greed. Watch your fear. Follow the rules of trading and question the rules of life.
Be Well and Do Good
Floyd at OEX
