Louie says...

its rally time in the stock market. Last week he was projecting a low of 7100 on the Dow based on what appeared (to me) to be a technically obscure 7100 high twelve years ago. Now having reached that projected low and seeing a double bottom on the Dow, and being 72 weeks out from the top he says its rally time. Hmmmm, 12 years is 144 months and 72 is half of 144. I don't know why these kind of numbers are significant, but I do believe wizard technicians look at the market having at least 2dimensions. Price movement being the vertical, time being the horizontal, with volume a possible candidate for the third dimension of depth. When we used to enjoy more time at the bar Louie would spend hours explaining Gann theories to me, and lapse into numeralogical phenomenology. When he introduced astrological observations, I'd know we were late for the door. Anyway, he's not saying that the market won't eventually go lower, but he's projecting at least a rally to the post election high of around 8,600.

Since he went to the trouble of phoning me with this prognosis, I'll swallow my pride and go look for an attractive call to buy.

It's later now and I entered an order to buy CNI (Canadian National Railway)
Things in Canada are pretty OK, Eh? My call is for April at $30 and cost me $4.20.
Well, $420, actually. That means I'm buying the right to purchase the stock in April for $30 The stock is now at $32.66. First, I went to Tim Knight's site to see if he was reccomending any specific calls. Nope, none, not a one. He's very bearish. OK, Louie we're on our own on this one. PS I didn't close out my DRI.