Stocks booster.

Lower government bond yields and Ben Bernanke's strong defense lift stocks into the close.
Strong demand at the last Treasury debt auction of the week bolstered investor confidence. The government sold $27 billion of seven-year notes, rounding out prior sales of different maturities this week that also came out ahead. The yield on the benchmark ten-year note slid 0.14%, to 3.55%; yields on longer-dated maturities also fell.
Stocks seemed to draw some strength from the lower bond yields, which means cheaper borrowing for both corporations and home buyers.
Tracking the Dow on Thursday,25/06/09.
9:30am:--Mild bearish gap-down.

The final reading for first quarter GDP came in with a 5.5% annualized decline, which is a slight improvement from the 5.7% annualized decline that was previously reported and also below the 5.7% decline that was widely expected.
10:30am:--Retrace to session high with indecision doji.

Fed Chairman Bernanke continues to testify before the house panel.

11:30am:--The ascending soldiers.

Gains in consumer discretionary stocks have enticed buyers to enter the fold and bid the broader market higher.

12:30noon:--A new session high with triple stars spin.

Diversified metals and mining companies are up 4.0%
1:30pm:--The pullback.

The gains upward move by small-caps and mid-caps has been relatively steady. Some volatility had been expected for small-caps ahead of the rebalancing of the Russell 2000 tomorrow.
2:30pm:--Bullish harami.
Despite this afternoon's moderate decline, stocks are still trading with impressive gains. Retailers (+3.3%) remain leaders.
3:30pm:--Graveyard doji with pullback.

In economic data, initial jobless claims for the week ending June 13 totaled 627,000, which is more than expected and up from the previous week. Continuing claims crept up to 6.74 million. Though that is still off of its record high, it exceeded forecasts.

4:00pm:--Bullish ascending inverted hammer.

The bulls are making an attempt to penetrate this month MAV line.
The Dow status is still in a bear rally.

Todate candlestick for the month is a bearish spinning doji.

Pairing with last month's candlestick,we are now at a morning star.

Monday's candle is yet to be covered fully and therafter pierce through the MAV resistance.

By month's end if it forms a bullish hammer,the month's ahead might not look good.

Long road to recovery.

The Federal Reserve kept its key interest rate near zero Wednesday, and said in a statement that although the U.S. economy remains weak, there are signs of a recovery.
Fed members have been suggesting signs of improvement in individual speeches in recent months.They are predicting like the 'chinese feng-shui' master acting as a comforter for the markets.
Keith Hembre, chief economist at First American Funds said that "They'd be out of step with reality and the data flow if they didn't make that statement."
The Fed reiterated that "economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period."
Economists said there's not much the Fed can really do to control the benchmark U.S. 10-year yield and mortgage rates that are pegged to it.
Sung Won Sohn, an economics professor at California State University Channel Islands, said the Fed is caught between a rock and a hard place.
"If it buys more bonds trying to limit the rate increase, it could fuel the budding inflation psychology pushing up the interest rate," he said.
Tracking the Dow on Wednesday (pivot week) 24/06/09.
9:30am:--About 50 points gap-up with inverted hammer follow through.

The OECD's claim that the global recession is close to bottoming out......the good guys.

10:30am:--The first hour setting high with turning point.

The World Bank's decision earlier this week to trim its forecast for the global economy is very contrasting.......the bad guys.So which of these witches are trying to satisfy their agendas?

11:30am:--The 3 black crows.

Durable goods orders for May increased 1.8%, which is far better than the 0.9% decline that was expected.

12:30noon:--Pullback at the opening gap up high.

There were bears and graveyard dojis.Planning to fill up the bullish opening gap.

The FOMC is expected to leave the federal funds target rate unchanged at 0.00% to 0.25%, so most focus will be centered on the policy directive.

1:30pm:--A bearish hammer at the gap-up point.

The bears are waiting for helicopter Ben to open his big mouth and shoot him down.

2:30pm:--Opening gap-up being fully filled and hammered below with further bearish dojis.

The new home sales figures for May showed a weaker-than-expected 0.6% month-over-month decline.
3:30pm:--The low of the day in the last minute injury time with bullish harami.

Stocks are paring their gains after gyrating in the wake of the latest FOMC statement,bulls have already priced in.It's a dirty game,prior results have already being leaked to the benefit of some of the financial cronies.

4:00pm:--Mild technical rebound.
The overall June candlestick is now a bearish inverted hammer.

The follow through next month is going to have extreme turbulence-the doom and gloom.

The old saying"Sell in May and go for your mid-year holiday" herein applies.

We must not be overgeared in the months ahead.

Asian index futures are expiring end of the month and will remain bullish and I would regard this also as a bull trap.

Any Dow index rebound will be shortlived within the area in the upper bear pivot point.

Ponzi Scheme.

We have another made-in-america ponzi-scheme.
Texas billionaire R. Allen Stanford,59 was indicted Friday, June 19, on charges he orchestrated a $7 billion fraud over allegedly bogus certificates of deposit.
If convicted of all charges in the 21-count indictment, Stanford could face as much as 250 years in prison, officials said.
An amended complaint filed by the SEC on June 19 accused Stanford and his finance chief, James M. Davis—who is not listed as a defendant in the criminal indictment—of conducting a "massive Ponzi scheme" in which early investors were paid returns from money put in by later investors.
High Yielding Investment Programs (HYIPS) are a plentiful on the internet.(example)

Tracking the Dow on Quadraple Witching Day.19/06/09
9:30am:--A 40.0 point bullish gap-up with quadraple hangmen. Jobless rate in Western US tops 10 percent
10:30am:--Opening gap is a quarter to be filled.

An attempt to gring it higher was again halted by the hangman.

11:30am:--The gravediggers are sighted.

Federal authorities are investigating a new outbreak of a bacteria-triggered illness, this time related to a sweet treat treasured by the heartbroken and children-at-heart -- packaged raw cookie dough.

12:30noon:--The opening gap has been fully filled and broken.

Now at session low with further dark clouds cover.Benchmark crude for July delivery dropped $1.82 to settle at $69.55 a barrel in light trading as the contract was set to close Monday.

1:30pm:--A technical rebound agin held back by a evening star.

A House panel has subpoenaed documents that lawmakers say could shed new light on Federal Reserve Chairman Ben Bernanke's role in Bank of America's acquisition of Merrill Lynch.

2:30pm:--The bears are holding it at day's low.

The Treasury Department and the nation's largest banks are still negotiating what price the government should receive for stock warrants that represent the banks' final ties to the $700 billion bailout program.

3:30pm:--A rebound to MAV in this late session.

Profit takers and unwinding of weekend position prevent it from going into the positive territory.

4:00pm:--A reprieve,a bullish harami sighted for follow through session.
Unfortunately the Dow will be playing below the MAV line till the month's end.

Holding of position for too long a period will be very risky in day's ahead in the light of high volatility as the investors fear index is still high.

The long upper shadow of the candlestick will be covered staggardly.

Together with last month candle,the pair is now a shooting star.

China crude-oil stockpile.

The price of crude oil has spike up of late despite the poor economic fundamentals worldwide.Just who might be stockpiling?
China, the world’s second-biggest energy consumer is aiming to take advantage of weakened oil prices amid the global recession.
The government started its first phase filling four storage bases on the eastern coast last year to hold the equivalent of 30 days of oil imports. Zhenhai (consists of 52 tanks, each capable of holding 100,000 cubic meters of oil)and Zhoushan bases in the coastal province of Zhejiang with 3.2 million cubic meters at Huangdao and 3 million cubic meters at Dalian
Under a second phase, China plans to build underground caverns and storage tanks in inland regions.
Sinochem Corp., China’s largest chemicals trader, is building a commercial stockpile of crude oil and fuels in Zhoushan, next to the government’s emergency oil-storage base.
The Chinese government plan is to stockpile 10 million metric tons of fuel by 2011.
Tracking the Dow on Tuesday,16/06/09.(3 market days to Quadraple Witching)
9:30am:--Opening flat with a bearish indecision doji.

The IMF has upgraded its view of the U.S. economy, while a separate article in The Wall Street Journal said the Bank of Japan upgraded its view of the Japanese economy for the second straight month and left its benchmark lending rate unchanged at 0.10%.

10:30am:--The bearish hangmen.

The Producer Price Index for May showed a 0.2% increase, which fell short of the 0.6% increase that was widely expected, and marked a decline from the 0.3% increase registered in April.

11:30am:--A bearish dark cloud cover at 2nd low attempt.

Losses have intensified among retailers, which are now down 1.0%.

12:30noon:--3 black crows with bearish hammer at another low.

Precious metals prices are pushing higher after slumping in the previous pit trading session.

1:30pm:--Hangmen and bearish harami at session low.

There isn't any particular news item or point of weakness to account for the downward move. Instead, the decline is broad-based with nine of the 10 major sectors showing losses.
2:30pm:--A bullish technical rebound but the double hangmen are going to send it back to the guillotine.

Stocks have extended their decline to trade at fresh session lows. Including the prior session's loss, the stock market has shed 3.4% this week.

3:30pm:--Hangman again.
Given the downturn among stocks, Treasuries have been garnering continued support. Currently, the benchmark 10-year Note is up 11 ticks, which has pushed its yield down to 3.67%.

4:00pm:--The 3 black crows.(Japanese call 'san-ten')

The follow through should find a reversal.

It's a Graveyard doji.

The long upper shadow is the short-covering zone in the next few days.

In the event this pattern persist with a small white body till end of month,the Dow is heading for further tsunami again.

We are having a shooting stars after matching together with previous month candlestick.

Meantime is the window-dressing of most financial instituition and companies for the half-yearly book-closing.

The worst slide in a month.

1) regional manufacturing data dented optimism about the economy's health and resource shares fell alongside commodity prices.

2) investors are looking for more definitive signals of its improving health.

3) the New York Fed's Empire State index survey showed the factory sector shrank at a much more severe rate in June than the previous month.(this monthly index is very important)

In light volume, the indexes racked up their biggest one-day percentage loss since mid-May.The CBOE Volatility Index (^VIX - News), known as Wall Street's fear gauge, closed above the 30 level for the first time since early June, suggesting more turmoil could be in store. The VIX jumped 9.5 percent to end at 30.81, its biggest percentage gain since late April.

This week marks quadruple witching, a term used to describe the quarterly expiration of June equity options, index options, single stock futures and index futures. This can bring more volatility as players adjust or exercise their derivative positions.

Tracking the Dow on Monday,15/06/09.(4 market days to Quadraple witching.)
9:30am:--Bungee jump 110.0 feet gap-down.

Index got entangled at the bear foot.The spinning dojis follow suit.

10:30am:--No sign of retrace to fill opening gap.

It's at session low.There is broad-based selling .Overseas markets also showed weakness.

11:30am:--Another new low with a bullish marubozu.

The 10-year Treasury Note is being quoted 10 ticks higher with a 3.75% yield and the 30-year Bond is up 14 ticks and yielding 4.62%. The U.S. Dollar Index is up almost 0.8%.A Russian official indicated the dollar will remain the primary reserve currency of choice.
12:30 noon:--A second bullish marubozu,the fallen bulls are recuperating
A stronger dollar has led to a weak commodities and basic materials trade.

1:30pm:--The tri-star recovery.

Crude oil prices are down 1.9% to $70.70 per barrel; they are still up almost 60% year-to-date, though.

2:30pm:--Intermittent technical pullback,a graveyard doji.

U.S. Treasury Secretary Geithner stated that it is too early to withdraw stimulus.

3:30pm:--Retracement with bullish engulfing.

Most of the weakness among commodities and materials stocks stems from a 1.5% jump in the Dollar Index, which has gained in the wake of supportive comments regarding the greenback's status as a reserve currency from a Russian official ahead of a meeting of BRIC nations. That is, Brazil, Russia, India, and China.

4:00pm:--A half-hearted profit taking.The spinning doji within the white candlestick looking forward to short cover.
June candlestick to date is an inverted bullish hammer.Overall this bear rally is still bullish.

The pullback has completed its mission right to this month bear pivot point.

The long upper shadow is a short-covering zone.

So now look forward to a rebound towards the MAV line(green) and take profit once near the bull pivot.(yellow line) High Volatility this week prelude to index expiry.
There might be a surprise witching day bull again.

The pullback.

Just like in any sports game,the first session is the most important part where one must win more points or goals and thereafter look forward to a more defensive mode in the second half of the game.Likewise in the stockmarket game.
1) the Iranian presidential race could impact the markets.
2) the East-Asian geopolitical tension again flares.
The timing this round is an excuse to crash the market so the short-sellers will be having a heyday ahead.Best opportunity buy will be the fourth week of the month.
Tracking the Dow on Friday,12/06/09.(5 market days to Quadraple Witching)
9:30am:--About 30.0 points bearish gap-down.

A cautious open.

10:30am:--After finding its early low,opening gap is now fully filled and trading at session high with a bearish hangman again.

11:30am:--Pullback to MAV support with a morning star.

12:30noon:--A second pullback to MAV support line with a bullish doji spin.

1:30pm:--The bullish inverted hammer.

2:30pm:--The 3 white crows spiking up to day's high in last one hour.

3:30pm:--Bearish spike.

4:00pm:-The shortcover,the hangman and a fake last minute double top bull.

Jun 11:--the standard SELL setting 7 days before the Dow expiry.Run for cover.Clear all position.

Jun 12:-the hammer aiming to the MAV support line.

This month June high has been set and the pullback begins.Get ready for the roller-coaster ride and bungee jump.

Friday June is the battle of midway (pivot day of the month)--the next half session is taking stock of all the summer blooming harvest and lock in the profits.

Bonds surge.

Long-term Treasury bond yields continue to creep toward 4%, a level they haven't traded at since mid-October.
Is the recent surge in bond yields merely confirmation that the economy is starting to recover or will the increase in long-term interest rates imperil any chance of an economic rebound?
It probably depends on how much higher bond rates go.
Treasury prices have fallen sharply in the past few months, coinciding with the massive rally in stocks. Bond prices and yields move in opposite directions, so that has pushed rates on the benchmark U.S. 10-year Treasury up to about 3.9%, from a low of 2.04% in mid-December.
If the recession is really nearing an end, it would make sense that bond prices would fall. Investors should be more willing to bet on riskier assets such as stocks in a period of economic expansion and sell some of the bonds they had bought in a proverbial flight to quality rush.
Rising yields are often a sign that the bond market is more focused on inflation.

Tracking the Dow on Monday.08/06/09 (9 market days to Quadraple Witching)

9:30am:--50.0 points bearish gap-down.

Regulators are expected to approve today the capital-raising plans of several banks, according to The Wall Street Journal, while the Fed is expected to announce which financial firms will be allowed to repay TARP funds.

10:30am:--A morning star spin.

One hour into trading and no sign of opening gap being filled.Financial stocks are showing relative strength in the early going.

11:30am:--A technical rebound but with a bearish engulfing still short of the MAV resistance line.

Weakness remains widespread.

12:30noon:--Another bearish session low.

The failure to move higher on relatively encouraging data has led some to question whether positive economic news is already being priced into stocks.

1:30pm:--The bears still reluctant to budge.

Weakness has been particularly noticable among airline stocks. As such, the AMEX Airline Index is down 2.8%. According to The Wall Street Journal some expect that worldwide losses for airlines could total $9 billion in 2009.

2:30pm:--A bullish hammer of a downtrend.

Meanwhile, crude oil finished the session fractionally lower at $68.28 per barrel.

3:30pm:--A three bullish candlestick spike up covering the opening bearish gap.
An evening doji star being the high if the day has put a brake.

4:00pm:--A three black crow ending the day.

A mild catch up to follow.

The witches have started their foreplay.
June 3,the bearish unshaven hammer signalled the start of the short-sellers game.

June 4,the bullish hammer.The intention of hammering whenever the market rebounded.

June 5,the doji spin.An evening star pair.

June 8,another doji star this time with a long lower shadow,a section reserved for hammering.

The 52 weeks bear rally resistance(R1) of 8,806.60 have been pierced through twice this week.Is this the turning point of the bear rally to pullback to the bear pivot point again?The witching day might give the answer.

Crude oil price versus Dow index

Investors use stock markets as a bellwether for the economy, and a stronger economy demands more energy. In recent months, oil prices have largely tracked stock markets because investors bet that as the economy goes, so goes demand for oil.
As stocks surged, Treasury prices fell and the dollar weakened. Government debt and the greenback are both perceived as investor safe havens, but as recovery hopes gain strength, investors move funds into higher yielding assets.
The weakening dollar boosted oil prices. Crude is traded in the U.S. currency around the globe, and so a weaker dollar pushes the prices of oil up in relation to other currencies.
The weakness in the dollar was also a result of inflationary fears in the wake of the unprecedented spending initiatives from the government to spur the economy into recovery.
For example, the government has committed another $30 billion to GM to fund operations during its reorganization, on top of the initial $19.4 billion that the government has already invested in the Detroit automaker.
The buying of General Motors and another $30 billion dollars to finance GM's bankruptcy is just the latest in nonstop spending that is shaking the confidence in the fate of the U.S.; credit rating

Tracking the Dow on Friday,05/06/09.(10 market days to Qudraple Witching)

9:30am:--An early 90.0 points gap up followed by spinning top.( evening star)

The employment report for May, and it didn't disappoint. Nonfarm Payrolls came in at -345,000, well below the -520,000 consensus estimate, while the prior two months saw positive revisions.

10:30am:--Opening bulls gap being fully filled and a bullish spinning low followed.(morning star)

It marked the fourth straight month that the pace of layoffs slowed.
11:30am:--A shooting star at near session high with bearish pullback to MAV.

The increase in the nation's unemployment rate from 8.9 percent in April underscores the difficulties that America's 14.5 million unemployed are having in finding new jobs.

12:30noon:--A technical rebound met with resistance.

Bank of America Corp. on Friday named four outsiders to its embattled and newly expanded board of directors, after two others resigned from the board over the past week.

1:30pm:--Bearish hammer near the MAV line.

A U.S. appeals court conditionally approved Chrysler's sale of most of its assets to Italy's Fiat Friday, but is keeping the deal on hold until Monday to allow an appeal to the nation's highest court.

2:30pm:--The MAV support line broken with the bears being engulfed by the bulls at the moment.

Bond yields jumped again on Friday as a sell-off in Treasurys continued, an ominous sign for anyone looking to buy a home or refinance their loans.

3:30pm:--Retracement to MAV resistance line but the graveyard doji star put a brake on it.

Wal-Mart Stores Inc.'s new President and CEO Mike Duke pledged to shareholders Friday that the world's largest retailer will speed efforts to improve its operations as it aims to hold onto customers when the economy improves.

4:00pm:--A bullish spin embeded with a slight profit-taking.

A follow through bull.
A mixed Friday closing with lower volume but it managed to hold above MAV line which is in the bull county.

It is attempting to break higher as it is now just a quarter section to reach the 52 weeks MAV line of 9,595.44 points.

The overall candlestick for June to date is a very bullish near unshaven bottom and top.

The bear rally is going to be over once a total of 800 points is being fully covered.Just guess how long will it takes?At this time crude oil might be back to USD120.00 per barrel.Hyper-Inflation is back and interest rate up & the Dow falls for the cold winter month of halloween.

General Motors.(OTC:GMGMQ)

Resistance to General Motors Corp.'s (GM) bankruptcy plans is beginning to take shape as groups that stand to lose in the auto maker's restructuring begin maneuvering to get a better deal.
Over the weekend, 54% of bondholders agreed to GM's 10% equity offer and promised not to fight GM on the sale. However, a judge would still need to sign off on the deal over what will likely be plentiful objections from bondholders who didn't agree.
Stock quote on 03/06/09:-Open:0.61(unchange)
High:0.70
Low:0.53
Closing:0.62
Volume:65,818,340 lots.

Tracking the Dow on Wednesday,03/06/09.(12 market days to Quadraple Witching)

9:30am:--A 50.0 points Gap-down.

According to the ADP Employment Report, 532,000 jobs were lost during May.
10:30am:--Bulls hammering session low.

The ISM Services Index for May recently came in at 44.0, which is a bit short of the expected reading of 45.0, and is up slightly from the 43.7 that was registered in April.
Much like the ISM Manufacturing Index, the ISM Service Index continues to show a contraction in activity, but the pace of that contraction continues to decelerate as the Index has clicked higher for three straight months.

11:30am:--Technical rebound failed to fill the opening lower shadow.

Meanwhile, factory orders for April increased 0.7%, which is slightly below the 0.9% increase that was expected, but up from the downwardly revised 1.9% drop that was registered in March.

12:30noon:--Bulls failed to hammer out session low again.

Fed Chairman Bernanke spoke before the House Budget Committee this morning and stated that inflation is likely to fall over the next year, and overall economic activity is expected to turn up later this year.

1:30pm:--Bearish engulfing at day's low.

Participants have been pushing stocks lower for the entire session. The decision to sell follows four consecutive sessions of gains, which lifted the S&P 500 roughly 6%.

2:30pm:--Finally a bullish harami seen.

Reuters reports, citing a source familiar with the Treasury's thinking, that the Obama administration is planning to release a proposal on financial regulatory reform on June 17.

3:30pm:--A triple low action with a final bearish hammer and ascending bull.

The major indices were able to limit their decline by attracting enough support to make a strong finish.

4:00pm:--The dragonfly with a breakaway inverted bullish hammer.

The market is poised for a rebound strongly again.

The Wednesday's closing was above the MAV support line and is still very bullish.
As usual Wednesday being the mid-week is the pivot day for index meaning it has to pullback from its high to kiss the MAV line and vice-versa.
We are still in the bear rally of the 52 weeks index range.

Booted Dow Anchorman.

It's the goodbye Joe,me got to go,me oh bayou as the lyric sings.
The two multi-billion begging icons (General Motors & Citigroup Inc) are now sterile and unproductive to lead the Dow Industrial Average index.
According to a statement released Monday, General Motors, which filed for bankruptcy on Monday, will be replaced by Cisco Systems (CSCO); Citigroup (C) will be replaced by The Travelers Companies (TRV).
The changes in the Dow will go into effect on on June 8, according to Dow Jones.
GM shares opened for trading on the New York Stock Exchange after a brief delay Monday morning, but the NYSE says the shares will be delisted before trading begins Tuesday. GM has the right to appeal that decision.

Tracking the Dow on Monday,01/06/09--(14 market days to QUADRAPLE WITCHING)

9:30am:-A poweful 100.0 points bullish gap-up.

A carryover of momentum of last Friday's high powered volume.

10:30am:--Session high with intermittent pullback.

There's no sign of opening gap being filled at this hour.
According to the latest batch of economic data, personal income increased during April by 0.5%, which is better than the 0.2% decrease that was widely expected, and up from the 0.2% decrease registered in March. March's reading was revised upward from a 0.3% decrease.

11:30am:--The hangman still holding on its execution at near trading high again.

Meanwhile, personal spending for April showed a 0.1% decrease, which is better than the 0.2% decrease that was expected.

12:30noon:--Weak bearish spin at high.

The strong upward bias has been undeterred by news that Dow component General Motors (GM) is expected to file for bankruptcy today. According to recent reports, GM and Citigroup (C) will be replaced in the Dow by Cisco (CSCO) and Travelers (TRV), effective June 8.

1:30pm:--The index is reluctant to make any pullback.We have the inverted bulls at work now.

The ISM Manufacturing Index for May came in at 42.8, which is in step with expectations and still indicates that manufacturing activity is contracting since it is below 50.

2:30pm:--Pullback profit-taking not so intense.

Banks have been a noticeable drag on the financial sector.

3:30pm:--A bearish spike.
Retailers are garnering support in light of some pleasing economic data, which has helped the supposition that a rebound in economic activity will soon send consumers back into stores.

4:00pm:--Another last minute bearish spike.

The short-sellers are going to skin all the retailers in today's bullish euphoria.It's an all-out retailers day.A fake bullish trap was noted.
A bullish June opener.Today's market might be a distraction against the bad news of General Motors which is filing for bankruptcy protection otherwise there's going to be a big sell-off.

What a good decoy the shorties are netting all the retailers.

Retailers must hit & run fast in this witching months and don't get screwed up by those hedge funds who are holding the joker card.